Here are the top eight pitfalls that property owners should steer clear of when collaborating with a property manager.
Hiring a property manager can be an excellent decision for both you and your property. It frees up your time and allows you to focus on what you enjoy. However, if this is your first time hiring one and you’re used to self-management, it can be a significant adjustment.
Handing over control of your most valuable asset can be nerve-wracking, leading to the temptation to micromanage your manager.
The property manager’s role is to streamline this process for you. In our experience, operations tend to run smoothly when managers understand the owner's objectives for the property and maintain clear communication. Homeowners should select property managers who prioritize their best interests while helping them achieve long-term goals for their property.
To ensure the best possible outcome for you, here are eight things to avoid when working with a property manager:
1. Communicating Directly with Tenants
You hired a property manager to serve as a buffer between you and your tenants. This setup simplifies communication for the tenant, preventing confusion over whom they should contact for various issues. When tenants reach out to you for some matters and to the property manager for others, it complicates the situation.
This approach also benefits you, as you won’t have to deal with tenant communication directly. This can reduce stress by preventing you from becoming an unintentional middleman. Keeping the property manager in the loop allows you to maintain an objective view of your rental decisions, such as rent increases.
2. Interfering in Marketing and Tenant Selection
Ideally, you wouldn’t know who your tenant is. The property manager should select a qualified tenant and recommend whether to renew their lease when the time comes.
Many owners feel compelled to participate in tenant selection due to concerns about who will occupy their home. While this is understandable, it can lead to fair housing violations if not handled correctly.
Property managers are trained in fair housing laws and know what is permissible. They typically have a strict, written rental criteria that ensures a non-biased selection process without favoritism.
3. Downgrading Appliances with Inferior Versions
Tenants expect to find appliances in good condition upon moving in, and if something breaks, they anticipate a similar-quality replacement. Downgrading an appliance can sour the tenant's experience and increase the likelihood of future maintenance issues, ultimately costing you more in the long run.
4. Failing to Adjust Rent When Activity is Low
We understand how frustrating it can be when your property isn’t renting for the price you expected, especially after being informed of its value. However, different seasons can impact rental prices. For instance, summer usually sees more rental activity due to the influx of college students, young professionals, and families.
If your property remains on the market with little interest for 1-2 weeks, it may be priced too high for the current market or season. While your home may rent for $3,000 in July, you might need to lower the price to $2,700 or less during the winter months.
Initially, lowering the price may feel like a loss, but correctly pricing your home will save you money on vacancy costs. Prolonged vacancies can be much more costly than reducing the rent by $50-$100.
5. Cleaning the Property Yourself
Preparing your home for the market requires a thorough, professional cleaning. Attempting to clean it yourself can be time-consuming and may not meet the high standards of a professional service.
A spotless home is attractive to potential tenants and signals that you value their living environment. When tenants find the home in pristine condition upon moving in, they’re more likely to maintain that standard.
6. Renting to Friends or Family While Under Management
This is a significant no-no in property management. Renting to friends or family can lead to various complications. If disagreements arise between the manager and your friend, they may come to you for resolution, pulling you into situations that the manager was hired to handle.
Your friend may not keep communication with you out of habit or courtesy. If an appliance malfunctions, they might request your input on replacements, complicating the manager's ability to perform their job effectively and making it harder for you to remain objective.
7. Offering Move-In Specials
While move-in specials may seem like an enticing way to attract tenants, they can backfire. If tenants filter their searches based on price, your home won’t appear if you include a discount in your description.
For instance, if your property is listed at $2,000 per month but you offer $600 off the first month for tenants who move in within a week, those searching for homes under $2,000 will miss your listing. A better strategy would be to lower the asking price to $1,950, which will widen your pool of potential tenants while still achieving the same income.
8. Ordering Appliances or Materials Yourself
Taking on the responsibility of ordering appliances or materials adds unnecessary complexity. If the wrong item is ordered, it doesn’t fit, arrives damaged, or doesn’t show up at all, you’ll be left with a larger issue that the property manager could have handled for you.
Property managers usually have experience ordering parts and appliances from trusted suppliers. They know what to look for and what constitutes a reasonable price, ensuring you get the best deal for quality items.
For more tips on hiring the best property manager for you and your property, check out our free guide!
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Logan Andren
Logan Andren is the founder and CEO of Andren Homes Property Management. Since launching the company, Logan and his dedicated team have simplified the rental property experience for numerous Santa Cruz homeowners. Their mission is to enhance the lives of their clients and community, focusing on providing exceptional service and fostering lasting relationships. DRE #02002055
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✆ : (831) 291-5043
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