Aug 15, 2016
We Americans have a tendency to sometimes be a bit hypocritical when it comes to property management. Although one may judge others by the condition of their homes, one can also fail to maintain one’s own premises. Of course, people’s busy daily lives prevent them from taking care of their property. However, this is no excuse since property management companies solely operate to offer such services. One of the main reasons why many holiday homes in the States are in bad condition is because realtors are unaware of the mistakes that they commit. This is why you need to know the difference between right and wrong when it comes to property management. In this case, the following are some mistakes that we advise you to avoid at all costs.
Underestimating the Expenses
Real estate is known to be one of the most profitable alternative investments in the market. However, not all real estate businesses turn out to be successful. Although most realtors are aware that investing in property is expensive, they are not aware that it is the maintenance that costs a lot of money. If you are planning on using the property for the long haul, you need to have a clear understanding about the costs involved. Conduct a thorough analysis to make sure that you are allocating the right amount for your maintenance budget.
If you hate using the assistance of professional services, worry not. This is a common concern that many Americans share. Whether it’s the cost involved or simply a matter of pride, it’s always a better idea to work with a professional in this case. Understand that not everyone is skilled at everything. One cannot expect all realtors to be educated in the art of property management. Even if you have no idea about taking care of your property, do not hesitate to ask for professional help. If you try to handle this on your own, you will mess something up and deteriorate your expenses
Allowing the Tenants to Do the Repairs
Of course, all Americans fully understand how precious free stuff can be. During these tough times, we need to save every penny we can. However, remember that not all free services are desirable. Letting the tenants handle the repair and maintenance does seem like a cheap and convenient idea. However, you need to keep in mind that the tenants do not know the property like you do. They certainly do not value it as much as you do. If you let them handle it, there is a high likelihood for them to damage something. Therefore, it is best to keep them out of this.
When it comes to maintenance, consistency is the key. What is the point of cleaning and repairing the property once in a few years? If you want your property to be the most appealing vacation villa or holiday home in the United States, you must make sure that it is cleaned and maintained on a regular basis. Therefore, make sure to inspect the property on a regular basis too. If you live far away from the property, ask the management company to keep a keen eye. If something needs repairing, get it fixed immediately.
There is no need to be embarrassed since most of us are guilty of making the above mistakes. However, the good news is, now that you know what is wrong, property management is no longer a challenge to your real estate business.