Property management is a challenging profession and the property manager has a tough job of satisfying the tenants as well as the property owner. A minor mistake or small amount of carelessness could cost the business dearly, and hence property managers have to be vigilant and focused. However, there are many instances of property management committing major and sometimes irreversible blunders, which are listed here.
Poor Process for Screening Tenants
Tenant screening should be given top priority and there should not be any room for carelessness or mistakes. In fact, before the application process, only those prospects should be allowed to apply that meet certain criteria. During the application process, property managers should follow strict protocol in screening procedures and carry out a credit and criminal background check, and reference the properties where the tenant had stayed before.
Not Taking Preventive or Intervening Actions for Rent Arrears
First, there should be specific terms and conditions in the lease that cover late payment of rent. The tenant should feel that property manager has some strict policy regarding rent collection, and there are penalties for not paying the rent on time.
Secondly, property management should make sure that all the things are actually put into practice; otherwise, tenants will obtain the feeling property management is not really serious about implementing the lease clauses. Even in cases where the tenant is going through actual financial difficulties, it would not be wise to be tolerant beyond a point, since it will be very difficult for the tenant to catch up on the arrears later.
Avoiding Routine Inspections
Inspections should be carried out periodically, since that will reveal structural problems, safety hazards, and other issues on the property. In case of internal inspection of units, tenants should be given sufficient notice about the inspection according to legal guidelines. Even on smaller properties, a routine inspection is an essential task that property management cannot afford to ignore.
Many property managers prefer to remain distant and hard to approach in order to avoid receiving maintenance requests and complaints. Maintaining concrete relationships with tenants is key to tenant retention and reducing vacancies. It is much worse when the property manager ignores phone calls or avoids replying emails from tenants. In fact, when communication lines are kept open, many issues on the property can be resolved quickly and relatively cheaply. Maintaining proper communications will not only improve relations with tenants but also improve the reputation of the property.
Not Keeping Track of Renewals
Ignoring renewals is the quickest way of reducing a stable income. Lease renewals should be given top priority and the property manager should make sure the tenant is given stellar reasons to stay on.
Mishandle Security Deposits
Many property owners and property managers are known to mismanage security deposit amounts of tenants. They are not returned to the tenant on time when they leave the property, and many tenants have to give several reminders and threaten legal action to get their money back. Security deposits should be accounted for in a separate account and all the legalities have to be followed regarding these amounts. Any property manager or property management firm who messes this up will lose business because word travels fast in this regard.