7 common mistakes everyone makes in Mornington property management
In any business, real estate included, mistakes can cost money and time. As owning property is your route to financial freedom and a comfortable life, you have to eliminate slipups that can topple your investment. If you’re a property manager, you have to do your job perfectly to avoid an early layoff. To succeed in property management, you have to steer clear of these blunders. We got in touch with Aero Property Management in Mornington Peninsula to give us the 7 mistakes everyone makes in property management. Be sure to visit www.aeroproperty.com.au for more information.
Poor planning and record keeping, as well as lack of documentation and a strategic marketing plan, can hamper your property management efforts. To succeed, you need to have a clear plan and an effective marketing strategy. On the same note, you should document everything and keep accurate records.
When it comes to maintenance and repairs, contractors can charge any amount they choose. To ensure a reasonable price, it’s advisable to procure multiple bids and compare them. To get the best value for your money, opt for an hourly rate and buy the necessary materials.
Hiring incompetent workers
Using unskilled workers is cost-effective but can be costly later. Though corrupt workers charge less per hour, they take too much time to complete the job. Their work may be shoddy too. Experts, on the other hand, charge higher rates but complete the job on time and to the best standards. Therefore, look for value, not the lowest price.
Personally performing repairs
Doing maintenance and construction work yourself is not a good idea if you don’t have enough time and the proper skills. When a tenant vacates, the apartment should be repaired quickly before another tenant moves in. If there is poor maintenance or delays in repair, the unit may remain vacant for long. That means a loss of rent.
Tenants doing repairs
Giving a tenant some money to make a repair can expose you to great risk. For one thing, most tenants don’t know how to replace flooring and paint a unit. If they decide to contract the work, chances are they may not get the right expert. Again, if someone gets injured while working, you could be held liable for their medical bills or loss of income, especially if you don’t provide workers compensation insurance.
Not inspecting properties
Don’t wait until a tenant moves out to inspect a unit. Instead, do an inspection on a regular basis. Some long-term tenants can leave extensive damage. To prevent this, make sure you check both rented and vacant units and repair them swiftly.
Maintenance is a headache for most landlords. Property owners normally neglect upkeep until something gets seriously broken. As you may already know, extensive damages are costly to fix. They also lower property value. If your building is not well-maintained, tenants may be disgruntled and decide to relocate. Don’t let that happen. Keep units up to date, fix any damages, and improve the look and standards of your rental property.
Lastly, be sure to screen tenants. Bad tenants are synonymous with damages, late rent payment and inexcusable behaviour. Avoid them like a plague. Also, don’t hesitate to fire bad employees. They may lead to the downfall of your property empire.