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5 Dangers of Self-Management – Lee’s Summit Property Manager Explains

August 30, 2016

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

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

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Best Tips for Self-Managing your Rental Properties

By Trisha Goodale • March 17, 2023

Owning and managing rental properties can be a lucrative business, but it comes with its own set of challenges. From screening tenants to handling maintenance requests, property management requires a lot of time and effort. Here are some tips to help you effectively manage your rental properties and maximize your returns. Set clear expectations Before a tenant moves in, make sure to set clear expectations about the rental agreement. This includes the rent amount, due date, late fees, maintenance responsibilities, and any other rules or regulations. Having a clear agreement in place can prevent misunderstandings and disputes down the line. Screen tenants thoroughly A thorough screening process can help you find reliable tenants who will take care of your property and pay rent on time. Ask for references, run background and credit checks, and verify income and employment. It's also a good idea to have a conversation with potential tenants to get a sense of their personality and communication style. Maintain the property regularly Regular maintenance can prevent small issues from turning into big ones and keep your property in good condition. Schedule regular inspections and make sure to address any repairs or maintenance requests promptly. You can also consider hiring a professional property management company to handle maintenance tasks for you. Communicate effectively Good communication is key to a successful landlord-tenant relationship. Be responsive to tenant requests and keep them informed of any changes or updates related to the property. Establish clear communication channels and respond promptly to calls, emails, or messages. Keep accurate records Maintaining accurate records can help you stay organized and ensure that you are in compliance with local laws and regulations. Keep records of rent payments, maintenance requests, inspections, and any other relevant documents. Consider using property management software to streamline your record-keeping process. Know your legal obligations As a landlord, you have legal obligations to your tenants, including providing safe and habitable living conditions, respecting their privacy, and following eviction procedures if necessary. Make sure you are familiar with local laws and regulations related to rental properties and comply with them at all times. Of course, if you have a property in Lee's Summit, Raymore, Blue Springs or other surrounding areas, we'd love to assist you with all of your property management needs.

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