7 Common Mistakes Made When Self-Managing Your Rental Property
Self-managing your rental property in Streatham can be a challenging task for landlords, especially if it's a "do-it-yourself" approach.
While it might seem simple at first glance, self-managing your rental property can quickly become overwhelming, sometimes leading to costly errors.
In this article, we will explore the seven most common mistakes landlords make when self-managing rental properties - and how to avoid them.
By learning from these mistakes, you can decide whether it's time to seek the help of a professional property management company in Streatham.
1. Failing to Screen Tenants Properly
One of the biggest mistakes landlords make is rushing the tenant screening process. It’s tempting to fill a vacancy quickly but skipping thorough background checks can lead to serious issues later. A poor screening process can result in late payments, property damage, or tenants breaking the lease early.
How to Avoid This:
Always conduct a comprehensive background check, which includes credit history, employment verification, and references from previous landlords. If the process feels too time-consuming, a property management company in Streatham like Your Home Managed can handle tenant screening professionally, ensuring you have reliable tenants.
2. Underestimating Maintenance Costs
Many new landlords fail to set aside adequate funds for property maintenance and repairs. As a result, when something goes wrong, such as a broken appliance or a plumbing issue, they find themselves unprepared.
How to Avoid This:
Create a maintenance fund to cover both routine and unexpected repairs. A good rule of thumb is to allocate 1% to 2% of the property's value annually for maintenance. As a professional property management company, we have a network of trusted contractors, which can help you save money on repairs and maintenance in the long run.
3. Not Knowing the Laws and Regulations
Landlord-tenant laws and regulations can vary significantly, and new legislation is common. If you're unfamiliar with regulations and legislation you could unknowingly break the law. This could lead to penalties, tenant disputes, or even legal action.
How to Avoid This:
Take the time to familiarise yourself with rental laws, including lease requirements, security deposits, and eviction processes. Hiring a property management company in Streatham is an ideal option. Your Home Managed is well-versed in the legalities of rental properties and can keep you compliant.
4. Setting the Wrong Rental Price
Pricing your rental property in Streatham too high can result in prolonged void periods, while setting it too low can reduce your return on investment. Many landlords struggle to find the right balance, especially when they are emotionally attached to the property.
How to Avoid This:
Conduct thorough research to understand the current rental market in Streatham. Compare similar properties, factoring in location, amenities, and property size. At Your Home Managed, we have access to market data and can help you set a competitive rental rate that attracts tenants while maximising your returns. Get a valuation here.
5. Neglecting Regular Property Inspections
Skipping routine property inspections is a common oversight that can result in long-term damage. Many landlords only inspect the property when tenants move out, but this leaves room for unnoticed issues that can worsen over time.
How to Avoid This:
Schedule regular inspections, both at move-in, during the tenancy, and at move-out. This ensures that any maintenance issues are addressed promptly and that your rental property remains in good condition. A property management company in Streatham like Your Home Managed can take care of these inspections for you, ensuring peace of mind.
6. Poor Communication with Tenants
Another frequent mistake is not maintaining clear communication with tenants. Ignoring tenants' calls or failing to address their concerns can lead to frustration, causing tenants to leave when their lease ends or, worse, legal disputes.
How to Avoid This:
Establish open lines of communication from the start. Provide tenants with clear guidelines for contacting you in emergencies and ensure that you respond to their concerns promptly. If managing the relationship becomes too difficult, a property management company can act as the point of contact, ensuring smooth tenant communication.
7. Mismanaging the Eviction Process
Evicting a nuisance tenant is one of the most difficult tasks a landlord can face and mishandling it can result in long legal battles and financial losses. Many landlords aren't aware of the legal steps required to evict a tenant, which can cause delays and additional costs.
How to Avoid This:
Make sure you follow the proper legal process, giving the correct notices and documenting tenant violations. If you're unsure, consult Your Home Managed in Streatham and let us help you manage the eviction process efficiently and legally, saving you time and stress.
Is It Time to Hire a Property Management Company in Streatham?
If you're finding it difficult to avoid these common pitfalls, hiring a professional property management company in Streatham could be the solution.
Learn why landlords work with us!
A reputable property management company like Your Home Managed can handle tenant screening, property maintenance, rent collection, and legal compliance on your behalf, freeing up your time and reducing the stress of managing a rental property.
For more advice on how professional property management can simplify your life as a landlord, please contact us on 0208 125 7780 or email info@yourhomemanaged.com
Our professional team can handle all aspects of property management, so you can focus on what matters most.
In the meantime, we’ve answered some of your common questions about property management.
Frequently Asked Questions
What are the benefits of using a property management company?
A property management company like Your Home Managed takes care of the day-to-day management of rental properties, including tenant screening, maintenance, rent collection, and legal compliance.
How do property management companies charge for their services?
Most property management companies charge a percentage of the monthly rent as a management fee, typically ranging from 8% to 12%, depending on the location and the level of services provided.
Can I hire a property management company just for tenant screening?
Yes, many property management companies offer standalone services like tenant screening, allowing landlords to benefit from professional vetting without committing to full management services.
What is the eviction process, and how can a property management company help?
The eviction process typically involves giving notice, filing for eviction, and sometimes appearing in court. A property management company knows all the legal steps and can manage the process efficiently.
Is it expensive to hire a property management company?
While there are fees involved, the savings in time, stress, and potential legal issues often outweigh the costs. Plus, property management companies can help maximise your rental income.
How do I choose the right property management company?
Look for a company with a solid reputation, excellent communication, and transparent fees. Reading reviews and asking for references from other landlords is a great way to find a reliable company.
