If you’re a first-time property owner, you may be experiencing some learning curves along the way. This is perfectly normal and to be expected of a first-time property owner, almost everyone who owns property has been there, done that! Today we at CREC Property Management wanted to highlight some of these common rental mistakes as well as outline how to avoid them for the best owner experience possible.
Not Enforcing Lease Terms
Lease terms exist for a reason. When a tenant signs a lease they agree to adhere to certain terms in order to ensure things run smoothly. As uncomfortable as it may be, it’s occasionally necessary to enforce these rules when tenants start to slip through the cracks. This can be difficult if you really enjoy your tenant as a person, but at the end of the day, rules are rules. Allow some space for wiggle room but when necessary understand you may need some tough conversations in order to ensure everything runs as smoothly as possible on your property.
Waiting to Evict
In a similar vein to not enforcing lease terms, waiting to evict can also be bad news in the long run. If a tenant is having difficulty paying rent on time or moving out in a timely fashion we recommend sticking to the terms you have outlined on the legal lease you signed together. Both parties agreed to this legal document, therefore should understand that this is the standard of how to uphold terms. When you stall on evicting someone who has gone beyond lease agreements or simply has not moved out when they agreed to, you invite the possibility of more issues such as long-term squatting, intentional property damage out of resentment, less time to prepare for other tenants, and more. It’s necessary to have some tough conversations and actions to avoid more issues down the line.
Underestimating Repair Costs
Household appliances and households often need regular maintenance, that’s just an unfortunate fact of life. What can vary is the amount that these items that need fixing will cost, which should be calculated into a budget. Sometimes you may think a repair will cost you much less than it will in actuality, in which case you may feel unprepared to deal with the costly consequences. DIYing (and failing) can prolong these issues further and become even more costly. Hiring someone from the outside can be stressful if you do not have a go-to repair man you trust. Consider reaching out to a property management company with a reliable team to be on your side when issues like this arise.
Not Taking Vacancies Into Consideration
Sometimes finding the perfect tenant can be easier said than done. When calculating budgets for your property, you should take vacancies into consideration. When a property that is intended to earn you passive income remains vacant, this can certainly impact your financial situation as you may have to cover the costs of the property as well as spend more on advertising, background checks, and more. Factor potential vacancies into your budgeting and understand the threat and financial impact this may have.
If these issues are things you have never considered and realize you do not have the time, desire, or bandwidth to resolve, we at CREC Property Management are here to help. When you work with us we can help in finding the perfect tenant and running proper background checks, marketing your property, having go-to maintenance assistance 24/7, ongoing property maintenance, and overall less headache for you. Reach out to us today at (843) 574-9100 or email us at [email protected].