Being a property management company can turn out to be challenging. For instance, some tenants might decide to sublet some rooms without your permission. It simply means that they can collect deposits from the sub-letters without informing you. Such situations and many others can make your work of property management to be quite tough. However, by learning some best practices, there’s no doubt that you’ll avoid falling into some traps.
Here are the top cardinal rules that superior property management Orlando companies should adhere to:
#1: Always Screen Well; Avoid Discrimination
The truth is that you can avoid 90% of potential issues by not only setting high standards but also screening applicants thoroughly. Nonetheless, for you to accomplish this, you have to conduct a structured screening process that does not discriminate against any protected class.
#2: Make Rent Payments Automatic and Easy
As a property manager, you must be highly creative. For instance, one of the most efficient ways of streamlining things is by requiring and/or offering tenants to remit their rent online. This requirement is especially handy when dealing with hundreds if not thousands of tenants. Most companies that have automated rent remittances have enjoyed low rates of late payments.
Here’s the key to successful use of utilizing online rent payments:
- Demand it in the lease
- Hire a reputable online rent collection firm
#3: Always have and stick to a rock-solid lease
Do you want to be a highly dependent property management company? If yes, then you must have a strong and fair lease. That means that your lease must be in written form regardless of the period. While at it, make sure that you seal all the loopholes that a tenant might poke on the lease. One way of making sure that such a thing doesn’t happen is by designing a high quality lease that’s tailored specifically for your state.
#4: Inspect the property you’re managing once a quarter
Are you too busy to even inspect the property or properties that you manage? If yes, then you’re too busy to become an effective property manager. Normally, the property can have an issue to do with issue or repair. It might also require a regular maintenance item that warrants quarterly inspection. Even if you opt to hire a contractor, you must be available to follow up on the job. By doing that, you’ll ensure that the job was done perfectly to the delight of tenants. While at it, you can also have ample time to inspect the whole premise.
#5: Be Honest, and Fair; Always Initiate Timely Repairs
Trust and quality are cornerstone of every successful business. It doesn’t matter whether you run a law firm, build home or operate a maid service, to satisfy your customers, you must be honest and fair. There is no shortcut to that. As a property management company, you must purpose to initiate timely repairs. In doing that, you can rest assured that you’ll be able to retain residents for a long time. In addition to that, you’ll manage to command more rent. Anything contrary to that will cause problems not only to your agency, but also the landlord and tenants.
#6: Only Withhold Deposit for Itemized and Actual Damages
Seldom, something bad will eventually happen. For example, a tenant might fail to give notice of his/her leaving. She/he might abandon the lease completely thus leaving you with months of unpaid rent. To be one the safe side, it’s prudent to withhold the deposit for only itemized or actual damages (financial or material). It can be late fees, rent or even the cost to initiate repairs to excess damages.
In Summary …
By adhering to the above best practices, you enjoy 99.9% chance of success. That is for sure.