There is probably a very good reason you started your real investing business - to grow your passive income and become financially independent. But to escape the rat race, you need to be strategic about managing rental properties and avoid certain common errors with property management.
This way you can spend more time enjoying your free time, rather than running around dealing with fires (both literal and metaphorical). Keep reading to learn more about the errors you need to avoid.
1. Not Building a Strong Team From the Get-Go
If you have a hard time with delegation, you need to try harder to let go of all that control and find a strong team to work with. This should include a reliable property manager and contractors, like plumbers, electricians, etc.
Don't wait until you have 5 or 10 properties to begin building this team. Having a strong team behind your real estate business will free you up to build your business.
2. Not Screening Your Tenants With Care
Don't get impatient when searching for new tenants and pick the first one that shows up. It's important to spend the time to screen your new tenants with diligence (and also fairly).
This will ensure you pick folks that are dependable, will pay on time, and won't end up damaging your property due to parties or illegal activities.
3. Not Knowing Your Local Housing Laws
It's important to be aware of not only your local municipality's housing laws but also equal housing laws, so you don't have to waste money on fines or legal battles.
Each city and state in America have its own way of setting up tenant laws, so make sure to do your research on this before buying any real estate properties.
4. Not Accounting for Vacancies
In an ideal world, you would never have to worry about vacancies and your tenants would keep paying rent forever and ever.
But in the real world, vacancies should be expected and accounted for in your monthly budget.
5. Not Performing Regular Property Maintenance
Too many real estate investors only focus on repairing property damage when it occurs but aren't proactive about doing property maintenance.
Don't wait until your tenant calls complaining about a broken toilet or door before fixing it. Set up a property maintenance schedule for all your properties and follow it diligently.
Don't want to do the maintenance yourself? Hire a property management company and let them take care of it all.
Errors With Property Management: Avoid Them and Succeed
Rental property management isn't rocket science. But it does require you to avoid certain errors with property management to stop on top of the game.
If this isn't for you, then hire a property management company that will take care of all the eventualities, so you can relax and focus on enjoying all your free time with your loved ones and on your hobbies. We are located in Vancouver, Washington. Set up an appointment with us to learn more about our service offerings.
