Lease Agreements: The Top 5 Mistakes DIY Property Managers Make
Handling a lease agreement on your own is a great way for property managers to save a little extra and gain valuable experience. Property management isn’t easy, and lease agreements can get particularly tricky for do-it-yourselfers, with numerous pitfalls that promise to trip you up along the way. As a New York property management company here in New York, Peridot Management Group has been through it all. That’s why we’ve put together this list of the top 5 mistakes DIY property managers make when they choose to take on lease agreements themselves.
Most property managers post available listings on Craigslist and other websites or realty groups. Creating a new post for every hosting platform available can be a daunting task, and owners often end up posting in only one or two specific places. This can reduce your chances of finding the best possible tenant or prolong the vacancy of a unit. Take the time to research beyond the most popular listing sites. And, be sure to update and repost regularly, as places like Craigslist prioritize the most recent listings.
Poor Background Checks
Finding the right tenant should always be the priority. It can be tiresome maintaining the listings of a vacant home or apartment. A tenant that doesn’t pay rent can cost you much more money down the road than waiting weeks or months for a tenant that pays on time for years. A property management company will have the proper screening process for finding an honest and reliable tenant.
Below Market Lease Rents
It may seem like a good idea to keep rent rates lower to attract more applicants. Don’t be fooled. Keeping the rent competitively priced will guarantee that you find higher quality tenants and you’ll be better able to maintain the building. As property units age, the maintenance becomes more frequent and more expensive. Keeping your rent rates up to par will set you up for success when it comes to maintaining your property value. Tenants will stay longer in a building that is well taken care of, too. Pricing your rental rates can properly be handled by an experienced and knowledgeable property management company, as they are in the know with current property trends and rates.
Inconsistent Lease Enforcements
Rules are rules. Whatever the lease agreement states, as far as when rent is due, how the tenant may contact you, etc., enforcing these rules consistently can be a giant hurdle. Allowing tenants to fall behind on rent, or making exceptions because of personal circumstances or on a case by case basis is never a good idea. By having a property management company enforce these lease agreements, you can save yourself the hassle and stress of having to enforce these rules alone.
Complete the Rental Agreement and Move-In Condition Report
Owners will sometimes forget to complete the move-in condition report. Updating the rental agreement forms so they reflect the current legislature, rent rate, and policies is another task that you will have to handle on your own if you choose to go without a property management company. These forms will protect your investment and give you the right to withhold the security deposit if the apartment is left in poor condition. Mishandling this process can result in lost revenue and damage to your properties.
Peridot Management Group
Property management isn’t easy. Most property owners prefer to let a company manage their lease agreements for them because a property management company will have the resources, time and expertise to take the best care of a rental unit. Peridot Management Group is one of the best New York Property management companies in business today. For more information on how we can help with your residential lease agreement, don’t hesitate to contact us.