Owning a property is a huge advantage because it would be your great asset, it is one of the best ways to utilize your investment in hopes of expanding your capital. Renting out your property is an amazing way to bring in more, but management may seem not so simple.
If you have gotten into this field you should first stop thinking like a house owner and put yourself in the shoes of a business owner. Managing a property is not easy and doing it by oneself leaves room for mistakes. Being aware of the common mistakes helps one from avoiding that mistake and helps you growing what you have created.
Doing it by Yourself
One of the most common mistakes especially if you are new to this business, trying to manage a property on your own can end up in you having to spend more and ultimately leading to a loss because you might not be able to understand certain clause in the documents, in this case, it’s better to have a professional with you who would be able to go through these documents carefully while having your conditions and rules in mind.
Allowing a Real Estate Agent to Manage Property
Real estate agents are good at selling properties but not much in managing property and that’s not their speciality, especially those companies which are more into leasing are not interested in acquiring tenants. This is why it is important to have a proper strata management Warrnambool team. With a team in place, you need not be worried about the management because they would take care of it and you can get back to your activities. This is really difficult if you are owning multiple properties and having a team of proper managers you can be at ease and take care of other stuff.
No Proper Insurance
The insurance can be quite pricey and considering many investors tend to select a cheaper one to save money and taking up insurance that does not provide proper coverage but this should not be done. Even if the cost is high get proper insurance for your property. Getting the right insurance is very important as this can even help you save money. Property insurance is quite different from other insurance so make sure you discuss this with an insurance professional before making the decision.
Neglecting the Update of a Mailing Address with Home Owner’s Association
Forgetting to update the mailing address with the home owner’s association is a common mistake but an expensive mistake to make, because homeowners association can fine you, if you are late to pay the fees or if it not paid and owners can get charges with late fee and lawyers charge. To avoid all this, make sure to update your mailing address and phone.
Being Overly Friends with Residents
Although it’s important to be nice to your resident, you should avoid being overly friendly, because when this happens you are most probably going lax your rules, so even if the tenants tend to pay their rent late you are going to overlook that.
Avoid charging over the market’s rents and be clear with the rules and regulations.