Being a landlord often means doing multiple jobs, from collecting rent to ensuring that everything in your building is up to code to advertising open apartments. With so much responsibility, it is no wonder that many landlords and property owners make mistakes when managing their property—especially when they are determined to do everything on their own.
Fortunately, knowing the major mistakes that landlords make can save you the hassle, and headache, of repeating the errors. Here are the top five common DIY landlord mistakes and why you should hire a management company to help.
Not Screening Tenants Properly (or At All)
Screening tenants is often underrated, but it is one of your most important jobs as a landlord in Logan Utah. A reliable tenant will pay rent on time and is unlikely to cause significant damage to the property. On the other hand, an irresponsible renter can make your life extremely unpleasant by failing to pay rent, disturbing neighbors, or even causing significant property damage.
Screening backgrounds for potential renters can help ensure that you are renting to the people you would actually want to live in your property.
A Less-Than-Ideal Rental Rate
Setting the rental rate is not as simple as naming a number. If your rental rate is too low, you are actually losing out on potential income. On the other hand, if your rate is too high, you may lose potential tenants to competitors.
It’s also critical to keep in mind that the “ideal” rental rate can fluctuate depending on the housing market, so you will want to keep an eye on your Logan Utah competition and the market structure when looking to rent to new tenants.
Buying Properties Without Market Analysis
While it might seem like a time-consuming and tedious process, good market analysis is an extremely valuable tool for landlords and can often help you set yourself apart from the competition. Because the market is constantly fluctuating, you will want to repeat your market analysis whenever you look for new renters.
When preparing your market analysis, you need to gather information about properties like yours in the surrounding area. Keep in mind that you will want to look at properties that offer similar square footage and amenities because these will be your closest competitors.
In addition to gathering information about the competition, explore the area surrounding your property. Renters consider the safety rating, crime rate, surrounding entertainment, traffic, and even the local school district when looking at a space. You want to be prepared to answer their questions and present your property in the best light.
Performing Maintenance That a Pro Should Do
Dealing with maintenance issues is part of being a Logan Utah, landlord. However, as a property owner, you may not have the specific skills to fix a washing machine or repair a broken electrical line. While doing the repairs yourself may be tempting because it might save money, you are also taking on some serious risk.
A botched DIY repair can lead to a bigger problem, or you may end up accidentally breaking something else. Likewise, you may not be legally qualified to repair and may be liable for negligence if the repair does not hold and causes future issues.
Before you try to DIY a repair in your building, ask yourself whether you are qualified to make that repair. If the answer is no, it is best to invest in a professional to handle it for you.
Not Hiring Good Property Management Help
The number one mistake many landlords make is hiring property management help too late, or not at all. One of the most important types of help a property owner can receive will come from working with a great property management company that does the work for you while maximizing your profits!
They Do the Research
A property manager is informed about local trends and will help you perform a more comprehensive and accurate market analysis on your property. In many cases, property managers are also some of the first to learn about changing trends and will be able to help you stay on top of the housing market.
They Know the Market
Experienced property managers have already seen the housing market rise and fall, so they know exactly what it takes to rent in a tough market. They keep up with what local renters want and how to keep your properties competitive.
They Do It All
Property managers can help advertise vacancies, deal with the rental paperwork, and handle rent collection. While DIY landlords “can” do these things, the experience of a property manager makes it more profitable to tackle these tasks for you!
Avoid Costly Mistakes With Property Management Advisors
The best time to hire a professional property management company is now! Reeder Asset Management has the experience and resources to help investors find the best properties, handle maintenance, find quality renters, and more. If you’re ready to turn over your rental management to the pros, let’s talk about how we can help!
Learn more about what to look for in your ideal property manager! Download our free guide to finding the best property management company.