Mistakes are part of life, and we all know that, but some mistakes can be very costly. A mistake on your property could mean spending money and time pursuing tenants or even dealing with lawsuits filed against yourself. Here are five property management mistakes you must avoid to cushion yourself against these headaches.
Failure to Appoint a Property Manager
Property managers are the masters in the game. They understand every aspect of property management, right from vacancy marketing to drafting tenancy agreements to maintenance. They also know how to handle tenants professionally – it is uncommon to find a property manager engaging in a heated altercation with tenants. Unfortunately, many landlords decide to manage their property on their own for fear of paying a property manager. With a property manager, you will likely get everything right from the word go.
Forming Friendship with Tenants
While friendship is important, it can ruin your business. What will you do if your tenant-cum-friend requests for a time extension for paying rent because he had a funeral just the other day? Your relationship with tenants should be purely professional and courteous.
Failure to Screen Tenants Properly
You have built some nice rental apartments, but they have been vacant for six months now. A potential tenant comes knocking and you’re quick to rent out. Wait a minute, you could be wrong. You don’t have to be desperate for tenants as this could lead into getting a bad deal. You will need to vet the tenant thoroughly to ensure they have the ability to pay rent. What is the point of renting out to someone who cannot pay rent?
Property managers are human beings, and as such, they have their own limitations. In fact, there is no guarantee that you will get a property manager who will be a perfect fit for your property. However, there are certain qualities that a good property manager must embody. Here some of them:
Forget about educational knowledge learned in class; experience is perhaps the most important attribute to look at when hiring a property manager. You can know the property manager’s level of experience by looking at the number of properties they have previously managed and the number of years they have been in the business. An experienced property manager will have local real estate regulations and laws at their fingertips.
It doesn’t matter how experienced a property manager is, their job can turn stressful at times, just like any other job. Just imagine how stressful it can get dealing with unruly tenants and behind-the-schedule contractors! This is where the manager’s patience will be put to test.
Exceptional Communication Skills
A property manager deals with different people, including tenants, investors, landlords, etc. As such, proper communication skills is very important.
Other important qualities for a property manager include tech savvy, ingenuity, professionalism, and organizational skills.
Being a real estate agent means wearing many hats. You need good selling and communication skills, and you have to be a people person, on the least. Now these are obvious hats any real estate agent wears. However, there is one hat that may not be as obvious, yet it is very important: marketing. Yes, you don’t need a masters degree in marketing, but you will need to be on the grips with what marketing entails if you must succeed in your business as a real estate agent. Most agents tend to fare well with mentorship and online resources, such as this article, but they still make certain mistakes, which should be avoided at all cost.
Failure to Use Social Media
Social media does not exist only for purposes of sharing videos and photos of your vacations or for uploading some funny memes. It is a platform for almost everything, precious leads included. You can start social media pages for your real estate marketing that could turn your followers into a solid lead generator for your business.
Use of Self-Made Website
Professionalism is key when it comes to marketing real estate. A Self-made website could limit your lead generation, especially if you don’t have certain technical expertise; most self-made websites have very slim changes of ranking high in search engines. As such, it is important that you hire an expert to complete the job for you.
Poorly Described Listings
Do you know that the language you use to describe your listings has the power to attract prospective buyers or at least keep them interested? Unfortunately, most agents ignore this important aspect. If you don’t provide a proper description of your listing, you may be losing out on lots of leads. Be thorough in your description and give every important detail about the property you’re listing.
Technology has brought a lot of welcome drama in the real estate realm, just as it has done to other realms. While there are those who have complained of bold-faced unfairness, lead theft, and even fraud perpetuated by third-party listing sites, the majority of players in real estate claim that these sites are not all bad. With the right strategy, real estate agents can sell even more homes and generate quality leads thanks to these websites. Those who use third-party sites for listing and are satisfied have cited the following advantages:
More Exposure to Buyers
Third-party sites enable you to reach a wider audience than you would do without them. The sites have millions of visitors every month, and the bulk of these visitors are real estate investors or home buyers.
Most third-party listing sites allows real estate agents or property owners to list properties free of charge. Who does not like free things?
Find Buyers Quickly
With the internet having almost everything anyone would want in this world; it is the go-to for many buyers. Hence, listing websites helps to get buyers faster.
Do you desire to dive into real estate business but don’t have finances to back your desire? If your answer is yes, then property wholesaling could be a perfect fit for you. Wholesaling will also suit you if you have an eye for distressed real estate properties, you are a people person, and possess skills for negotiation. Yes, it takes a lot of time to establish yourself in the market as a wholesaler, but if you do it right, then overwhelming rewards would be waiting for you. If you’re passionate about real estate and have good communication skills, you may also be the right person to open wholesaling business.
To start a successful property wholesaling business, you will need to undertake some research, which will be helpful in locating real estate experts and groups that can offer you valuable advice on how to go about the business. Additionally, you will need to invest time in locating distressed properties and get to grips with real estate wholesaling contracts. Lastly, you will want to find motivated sellers.
Compared to other areas of real estate, wholesaling requires less initial capital. The business does not require you to have a minimum educational requirement or a real estate license either.
Once you get into the business of wholesaling, it won’t take long before you realize if it fits you or not. The business requires a lot of commitment when it comes to finding sellers and buyers, and it involves lots of grey areas. Once you have a couple of deals on your profile, you be will have opened the gates for more business. Experience will give you confidence to work even harder and succeed in the business.