Professional property management in Lee’s Summit, Missouri can protect your rental home and help you achieve a higher cash flow and return on your investment. It also prevents expensive and time-consuming mistakes. Today, we’re discussing 5 dangers that you face as a self-managing landlord.
Placing the Wrong Tenant
Putting a bad tenant in your property can cause a lot of unneeded headaches and frustration. When you use a third party such as an experienced property manager, you have the benefit of receiving an objective analysis of screening results. This will save you time and it will also ensure you’re choosing a resident who will pay rent on time every month, take care of your property, and follow the terms of your lease.
Incorrect Pricing and Inconsistent Rent Collection
A lot of self-managing landlords underprice their homes or overprice their homes. When you price your property too high, it’s going to remain vacant for longer, and you won’t collect any rent. When you price it too low, you’re losing money on a monthly basis. We also see a lot of landlords who don’t effectively raise their rent when it’s appropriate. Another major mistake is not collecting past due rent. You need to have a system in place to ensure you’re paid on time.
Emotional involvement is a problem for many self-managers. It’s hard to be objective when a tenant calls and says that rent is going to be late because their father just died. It can be difficult to follow through and collect that rent when you know a tenant is going through a tough time. Property managers can help you avoid that.
Lack of Knowledge and Experience
If you don’t deal with problems because you’re not sure what to do, you’re putting yourself and your tenant in a predicament. You have to know what to expect and how to effectively deal with problems so your tenant feels like you are helping them. A third party can manage the tenants and their issues on your behalf.
Not Understanding the Laws
Legal complications can arise if you do not implement proper procedures and policies. If you don’t know the rental laws, you can find yourself in trouble when you have to face a judge during an eviction or other potential legal matters.
We would be happy to help you avoid these property management dangers. Please contact us at Midwest Property Resources.