1. Purchasing a property in poor condition.
Even though the purchase price may be attractive, the amount of corrections required to make it inviting to potential tenants can consume every bit of profit made available by a tenant occupying the property. If you purchase a property in poor condition as a value-add then you need to have a proper capital improvement budget in place to bring the property up to market ready condition. We have completed numerous improvement projects large and small and can assist you with your planning.
2. Requesting a rent amount that is too high.
This mistake leaves you with long term vacancies while generating no monthly income. Residents in the rental market have a good idea of what current rents should be. Thoughtful consideration is required when forecasting rents. We have at our finger tips the ability to pull market competitive surveys on any market or sub-market to assist with the setting rents.
3. Not keeping an open mind regarding applicants
The changing economy has forced property managers to make decisions and review tenant applications differently. On average, resident prospects have lower credit scores than the applicants from a few years back. Protect yourself from Fair Housing and Fair Credit laws. Our resident screening process provides a complete evaluation of the resident prospect’s creditworthiness.
4. Failure to take advice from your property management company.
The rental property business is complex. Our experience over the years have introduced us to almost every obstacle rental property ownership may present. Trust in your management company. We are here to protect your best interest. We offer decades of property management and ownership experience.
5. Not addressing resident concerns in a timely manner.
Failure to respond to resident requests can create additional issues for a rental property owner. A well served resident is a long-term resident. High resident turnover will negatively impact your bottom line. Let a property management company handle your resident concerns.