When you are a new in property management, there are a lot of mistakes you are exposed to. In most cases, most new landlords learn through their mistakes. However, you don’t have to wait to make these mistakes before you learn. Ideally, the best thing will be to find a property management company with huge experience to take care of your property. But if you don’t want to use the services of property managers, the next best thing will be to educate yourself about property management in Beverly Hills or the area you found yourself.
Below, we have listed some mistakes most newbie landlords make. Read and try to avoid them at all cost.
Undercapitalization
We’ve seen it thousands of times before; most people spent their life savings and even borrow money to acquire property leaving them with little or no cash to take care of the property. As a landlord, you need to have at least money for emergency maintenance. If you are using a property management company, they will definitely inform you that you need to invest in preemptive repairs, insurance, and even in marketing to attract new tenants and make your current tenants happy.
Being Too Understanding
Trust is earned; don’t allow any tenant to sweet-talk you into renting your property when you have not done the necessary checks. Don’t allow any tenant into your property unless you’ve completed in-depth background checks. Looks can be deceptive; don’t base your judgments on just look and words alone.
Being Too Lenient
While it is safe to say that as human, we need to be lenient at times. However, avoid being too lenient with tenants. Make sure that a tenant has proven himself worthy of your leniency before you decide to look the other way. If you want to extend a tenant’s rent, it must have an expected date for payment.
Missing Move-In Season
Most landlords that are not making use of property management company in Beverly Hills make this mistake. According to a report, your property is likely going to be vacant for a lot of months if you miss September move-in season. This is because most people don’t move much during the holiday season. A strategy most experienced landlords or property managers in Beverly Hills use is to cut rates during September month which is famous as a move-in season.
Not Having a Lease Agreement
This will be one of your greatest mistakes. Don’t allow a tenant to move in without having a lease agreement. Ensure you have a binding agreement. If you don’t know how to make one, get an attorney to make one for you.
Not Separating Your Business from Your Personal Live
This is one of the dangers of not hiring a property management company. You need to separate your business from your personal life and protect yourself from liability. Keep the funds for your business and your personal savings different. Making this mistake may cost you a lot including your house if you ever get sued.
Using Cheap and Unverified Contractors
Most newbie landlords think they can cut cost and play smart by hiring cheap contractors. You need to invest in an experienced contractor when you want to do maintenance or any repair work on your property. Using contractors without a verifiable reputation can cost you a lot. You can lose more money when they cause more damages to your property. Make sure any contractor you are using have experience, reputation, and is properly insured.
Failing to Screen All Tenants
Don’t ever allow a tenant into your property without proper checks. Ensure you do a proper background check, credit check, call the previous landlord, and even verify the tenant’s source of income before signing an agreement.
Failing to Buy Landlord Insurance
It may sound strange to you but your homeowner’s insurance won’t cover you if your insurer discovers that you are renting your property out. Many newbie landlords make this wrong assumption. You will need to get a good landlord insurance to protect you and your property.
Getting Cheap with Property Managers
Most landlords usually realize when the going gets tough that they will need the services of a property management company to get the best from their property. However, don’t make the mistake of falling for cheap property managers. You need a company with a verifiable reputation.
Hiring a reputable property management company in Beverly Hills will help you get the best from your property. You will also be able to avoid these aforementioned mistakes. You will be a happier property owner when you make use of the best property manager in Beverly Hill.
