For first-time property managers, this can be a difficult transition as your property is most likely one of your most significant assets now. Like everyone else, your goal is to leverage investment and eventually grow your capital. Owning a rental property can generate income, but many responsibilities come with the job. Let’s dive into a few mistakes that first-time property managers tend to make.
Trying to Do it All
When you’re new to investing in properties and management you might think you can do it all at once, but you will soon see that is not the case. Hiring an experienced professional to assist you with everyday tasks and documentation can save you in the long run. Not only will you save time but money as well. Yes, you may be paying someone for help, but this can lead you into having more time and energy to find even more properties to put under your belt. Remember that two heads are always better than one.
Not Being Insured
With insurance prices being pretty high, it’s common for a property manager to opt-out of insurance and just hope for the best. Depending on where your property is located, there is most likely reason to get insurance. Actually, having insurance can save you so much money, in the long run, in case of an accident or emergency. It’s also essential to be sure that you have picked the correct type of insurance based on the rental property. There are plenty of options available so take some time to sit down with an insurance professional.
Laying Down Rules
Although you might have managed people in the past, managing tenants that live in your properties can be a little different. From the very beginning, you need to layout rules and guidelines that they must follow. New property managers tend to forget the importance of listing these things in a lease and just accept tenants with only having a verbal agreement. Always be fair and report back to the rules and guidelines if something does occur. Although you don’t want to be the bad guy, you also don’t want to allow tenants to walk over you and think you’re a pushover. If you stay true to the rules and enforce them, then your tenants will better understand. Also, note that you can go back and change the rules and regulations at any time, but you must give all tenants a notice.