Real estate investors and landlords are often afraid of making mistakes. That’s understandable. It’s scary to fail, and we typically don’t know we’re missing something until it’s too late. Once you’ve made a mistake, it can be difficult to find a way back from that error, especially if it’s a large or expensive problem to fix.
Small oversights can be just as damaging as the big ones. Today, we want to talk about the common oversights that Orlando investors often make, and how an experienced property management company can help you prevent them.
If you’ve ever networked with a group of rental property owners, you know that everyone has their own stories about what went wrong and how they recovered. Let’s minimize the stories you tell about unforced errors with these important tips.
Placing the Wrong Resident in Your Orlando Rental Property
It’s easy to find yourself rushed when you want to fill a vacancy. Maybe tenant screening doesn’t seem so important at the time because you feel good about the person and you think they’ll be just fine as a tenant.
Not screening or inadequately screening is a huge oversight.
If you don’t have a great resident, a lot can go wrong really fast. Avoid this mistake with:
Solid marketing
Consistent rental criteria
Thorough screening
Use a thorough application, and check the credit history and eviction history. Talk to previous landlords about their rental experience with the applicant, and make sure you verify employment and income.
Look for felonies and a history of violent crimes. You want to judge their character as well as their financials; an applicant who has had physical fights with former neighbors is probably not going to be a great resident.
The turmoil in your life can be disruptive and expensive when you place the wrong resident. When you place the right resident, everything feels normal and natural and most importantly - profitable. Your entire rental and investment experience starts and stops with the resident you choose. Property managers know how to market your property, screen your tenants, and set you up for a better tenancy.
Lack of Rental Property Inspections
It's critical to regularly check the condition of your rental properties.
You want to ensure that they're safe, secure, and habitable. You need to look for repairs that may be necessary as well, otherwise, you’ll find yourself dealing with deferred maintenance, which is a huge oversight that always leads to expensive repair bills.
Without consistent and detailed inspections, you’ll find an increase in emergency repairs, tenant complaints, and property deterioration. Your property management partner prevents this by performing regular inspections and providing detailed reports on the state of your property. You can expect your management company to inspect the property before a tenant moves in, which documents its condition. We’ll also inspect after a tenant moves out so we can compare the condition at move-out to the way the property looked before move-in.
We also walk through the property at least once a year to look for maintenance issues and to ensure your tenant is following the terms of the lease agreement and taking care of the home.
Poor Tenant Communication
How are you communicating with your tenants? A positive, respectful relationship between landlords and tenants is essential to a successful rental experience. When the communication isn’t working for you or your tenant, it’s easy to invite misunderstandings, leading to conflicts and disputes.
You need to focus on retaining tenants in order to avoid vacancy and turnover costs. Make communication a priority, otherwise, you’ll find yourself dealing with unhappy residents.
Orlando property managers can help you avoid the oversight of bad communication. We have online portals that facilitate easy messaging back and forth and the sharing of pertinent information. Through their online portals, tenants can also pay rent and make maintenance requests. We remain easily accessible and available to your residents and their needs.
Investing in the Wrong Property
A huge mistake is to buy the wrong property. This oversight will follow you around for years and almost certainly cost you money.
Enlist the help of a property manager before you invest. Property managers who understand the local area can tell you:
How much rent you’re likely to earn.
Whether tenants will find the property desirable.
How much work will be needed to make the home rent-ready.
What kind of maintenance budget you’ll have to expect based on age and condition.
It’s easy to get excited about an investment property, but if it’s a property that’s going to make you house-broke, that’s a huge mistake. Do the math and respect the numbers so that you’re sure you’re buying an investment that will make you money.
A lot of investors will try to make the numbers fit any deal they want to close. Don’t try too hard to massage things to make those numbers work. You don’t want to hope you’ll get more rent and you don’t want to take a chance that maintenance will cost nothing. When you’re looking at the numbers and the historical data, remember those statistics are there for a reason. Don’t read between the lines. Your decision should be simple. Either it’s a profitable rental property or it isn’t.
Professional Central Florida Property Management
Partner with the right property management company that can help you avoid these oversights.
You need a property management partner that can offer resources and support even before you buy a property. If you ask us what we think about a property you’re considering, we will take a look at it and whether we think it can earn you the amount of money you’re hoping it will earn. We talk through your options and we provide reports and analyses that can help you make an educated decision.
If you decide to buy, we will lease, manage, and maintain the home, all with your investment goals in mind.
The right property manager helps you avoid costly and common oversights. Let’s talk about how we can help. Work with us so you can prevent the oversights mentioned above and enjoy peace of mind. Please contact us at RE/MAX 200 Realty. We manage rental properties in Orlando and throughout the greater Central Florida area, including Orange County and Seminole County.
