Investing in rental property in Charlotte, North Carolina has gained new tools that make it easier and more accessible. With that, however, comes a lot of responsibility and investors might not be prepared for.
Regardless of if they are residential or commercial properties, property management requires flexibility, quick-thinking, and time management. Even with those skill sets, there are still common mistakes that property management teams do that can be detrimental to the property.
1. Lack of Regular Inspections
Regularly inspecting individual units and the overall property allows for more routine maintenance and preventative measures that can avoid damages. Some extensive property damages could be avoided had they been addressed early on.
Taking shortcuts with inspections is also a big mistake as it is a sure-fire way to lose money. If your property falls out of compliance, the property cannot house tenants until issues are fixed. Until then, the property can’t generate any income. Conducting inspections thoroughly and often prevents this.
2. Do-It-Yourself Fixes
With so much information online and how-to videos for repairs, we all may be tempted to attempt repairing things ourselves. While this may be great for your personal property and experience, as a property manager repairs need to be done as efficiently and effectively as possible to avoid further damage.
Possibly worse than DIY fixes is letting tenants handle repairs. This may seem like the easiest option since the tenant is on the property. You may be held liable however if they injure themselves while repairing something on your property.
Worse still is if this happens and there is even more extensive damage, you will still be held responsible. Common DIY fixes and improvements that go wrong can be costly. Trust the professionals in the area to get it done.
3. Being Unorganized
When dealing with applicant files, rental contracts, contractors, and providers, there’s a lot of names and paperwork to be stored. Pristine record-keeping is crucial for property management.
If you lose a contract, there is no guarantee that the tenant will be able to provide a copy. If there are questions over what services contractors are supposed to be providing, referring to the agreement is the quickest way to handle that.
The more organized and diligent, the better chances of growing a successful portfolio.
4. Not Screening Tenants
Yes, the screening paperwork and process can be tedious. It is worth conducting thoroughly though because new tenants that have not been properly vetted can lead to grief, stress, and ultimately financial loss.
If you set a credit score minimum, stick to it. If you require a set income ratio, enforce it consistently. Conduct thorough background check screenings. You can never anticipate what tenants may say to each other and if discrepancies or exceptions occur in some cases and not others, you could face legal trouble in North Carolina.
5. Not Hiring Property Managers
This may seem obvious, but it’s surprising how many people invest in rental properties and think they can handle everything. Working with a property management team helps property owners work best as they can be involved in areas they feel they are best suited for while property management companies handle the rest.
Contact a Property Management Team
Not interested in making these mistakes? Contact us to see how we can better take care of your investments alongside you. Working with a successful property management team is crucial for the guaranteed success, safety, and growth of your investments.