If you’re a real estate agent, you may be thinking about managing your clients’ rental properties yourself, but the reality is that this strategy often results with the realtor making common mistakes that can be very costly.
Before embarking in the DIY property management journey, here are several costly mistakes that most realtors make when managing their clients’ properties so that you don’t have to make the same mistakes as other realtors have made in the past.
Underestimating the Time Commitment
Managing rental properties is time-consuming. From handling tenant concerns to coordinating maintenance, the responsibilities can quickly pile up. Many realtors don’t realize how much time property management requires, leading to delays in responses and unhappy tenants.
Not Understanding Landlord-Tenant Laws
Fair housing regulations, eviction procedures, and security deposit rules are just a few legal aspects realtors must navigate when managing rentals. A lack of legal knowledge can lead to costly lawsuits, fines, or tenant disputes. Property managers stay updated on changing laws, but realtors may overlook key compliance requirements.
Improper Tenant Screening
Realtors may not have the same screening processes as professional property managers. Failing to conduct thorough background checks, verify employment, or assess rental history can result in unreliable tenants who miss rent payments or damage the property.
Overlooking Maintenance Issues
Neglecting routine inspections and repairs can lead to expensive fixes down the road. Realtors who aren’t proactive about maintenance may face tenant complaints, property deterioration, and difficulty renting the unit in the future.
Pricing the Rental Incorrectly
Many realtors’ base rental prices on gut instinct rather than market analysis. Overpricing can lead to vacancies while underpricing leaves money on the table. Property managers use market data and experience to determine competitive rates.
Contact GoldenWest Management
At GoldenWest Management, our team saves busy realtors the time and hassle of managing their clients’ properties themselves along with the hassle of making common mistakes like those mentioned in this article.
Learn more about our property management services by contacting us today by calling (866) 545-5303 or click here to connect with us online.
