Renting your property can very rewarding. There are a lot of factors that make this business unique. As a result, there are a lot of pitfalls if situations aren’t handled correctly. Here are some common Miami rental management mistakes and how to avoid them.
Miami rental management – it’s a business!
The first thing that landlords must recognize is that managing rental property is a business, so it should be treated as one. The most common mistake is not establishing a business/customer relationship from the beginning. A lot of other problems can be avoided by doing this one thing.
Inadequate property preparation
In order to find that great tenant, you have to have a great property! Many times, landlords don’t realize there are different kinds of tenants. Those with good employment, rental history and credit are the most desirable, and the ones with the most options. Make sure your property is up to par in order to attract quality tenants.
Poor marketing strategy
If a tree falls in the forest and no one is around to hear it, does it make a sound? Who knows, this is about Miami rental management.
If you do have a good rental property — clean, functional, in a desirable area and correctly priced — then it should rent to good tenants, right? Well, not always. If you don’t have a good marketing strategy, you’re limiting yourself to prospective tenants that happen to see your for rent-sign or Craig’s List ad. Those marketing efforts are just fine but should be a part of a wider effort to capture the best possible candidates.
Related: Should You Screen Tenants in Miami
Negative tenant interaction
Remember that thing about establishing the correct landlord/tenant relationship? Not doing so could cause all sorts of problems down the line.
Interaction with tenants should always be courteous and professional but it’s a business relationship first and foremost. Family and friends often do things for each other without expecting something in return. When landlords and tenants develop a similar relationship it can become confusing since many people find it difficult to distinguish the two.
If a landlord accepts a tenant’s offer to make repairs that are the landlord’s responsibility for example, the tenant may expect not to be charged a late fee if the rent is paid late. This undermines the written agreement that was made.
Landlords should always follow what the lease states. If there’s any confusion respectfully refer the tenant to the lease and explain the importance of following the guidelines that were agreed to. If you have a fair and lawful lease, no one can fault you for following the rules.
High tenant turnover
Once you find a good tenant you want to keep them as long as possible. There are costs associated with finding a new tenant.
There are a lot of reasons tenants move. Some reasons are beyond anyone’s control such as a tenant relocating or needing more space. Tenants also move because they’re not satisfied with the product (the property) or the service (the landlord). As a landlord, you want provide a good product and service to maximize the return on your investment.
On our next post we’ll cover other things to consider such as;
- Inadequate rent process
- Neglecting inspections
- Insufficient maintenance
- Failing to choose a property manager carefully