Wednesday, October 31, 2012
Six Scary Property Management Mistakes
1. Hiring Unskilled Workers to Save Money
Although the expert may have a higher rate, it will probably take them less time since they know what they are doing. An unskilled worker for half the rate may take three times as long and leave you with an unfinished or unprofessional product. Bite the bullet and hire somebody who knows how to do the job so it get done right the first time.
2. Overpaying Contractors
Contractors can decide whatever they want to charge for a job without almost any reason. Although it may seem the easiest to go with the first bid that you receive from a contractor, it is always a good idea to shop around. You may end up saving yourself a good chunk of money by shopping for better bids.
3. Ignoring or Putting off Maintenance Calls
Don't delay in dealing with maintenance calls. The problem will not magically go away. If anything, it will get worse. Be proactive in dealing with maintenance problems on your properties and try to almost anticipate problems. If you find yourself continuing to fix the same thing, it may be time to evaluate if you need to invest money in replacing or improving items on the property.
4. Not Inspecting the Property Routinely
Make it a routine to visit your properties regularly. Being able to spot an issue before it turns into a big problem could save you a lot of money. Also, it sets a good image to have the property manager routinely coming by the property. Your activity coming to and from your property also reduces the likelihood of break-in and crime.
5. Not Keeping Records
Records for tax purposes, and just general correspondence should be organized and filed scrupulously. Use your tools to your advantage: create Outlook folders for each property, take pictures of properties, create voice memos to help you remember key items to follow up on. This will help you stay organized with your tax filing as well. The last person that you want after you is Uncle Sam! Need help getting organized? Our Best Free Apps for the Commercial Real Estate Professional post may help!
6. Not Listening to Your Tenants Your tenants act as a thermometer to let you know the temperature of your property. They are the best source of information to learn the state of the property and how other tenants are feeling because they are there more than you! Tenants will often be the first to notice a problem with the building. Listen to your tenants, communicate with them, visit with them. Incorporating basic customer service and care into your property management routine can make a big difference.
Stay away from these scary property management mistakes...they are a sure-fire way to make your portfolio a ghoulish graveyard of poorly managed properties.