A rental property is one of the most profitable investments possible in the world today. With that said, investors often find their money and time wasting away as they chase tenants for rent payments and lose sleep over their properties. Here are some mistakes that landlords make, and how you can avoid them by hiring a professional property manager
Not Conducting Background Checks or Screening Tenants
Landlords often don’t have the time or the resources to screen each application to their property, especially with the number of interested potential renters of the said property, and some forego the screening process altogether. You want to ensure that your tenants will be responsible; paying their rent in a timely manner and taking care of your investment property as if it were their own, but screening each application takes time and diligence. You need a property management company to help ease this process. Most often the property management company will process tenant’s applications based on credit score, police check, and prior landlord reference, so you can rest easy knowing your investment property is in good hands.
Lack of Content for Lease Contracts
A well-documented lease agreement helps you set your expectations with your tenant. It also protects you against litigation. Creating a lease agreement that takes into account every expectation a property owner has of their tenant takes the first-hand experience. A property management company will handle all of your administrative inquiries and paperwork.
Collecting Payments with Personal Cheques
Some landlords will often agree to accept personal cheques as a form of payment, but personal cheques can bounce, or take a few days to clear. Cashier’s cheques, transfers or bank drafts, are your best bet in payment collection. Tracking your residents down for payments in whichever form (person, mail, e-mail), however, isn’t something any landlord looks forward to. A property management company will manage all of your rental payments, so you can rest easy, knowing your investment property will remain profitable, and hassle-free.
Renovations and Repairs
Landlords will often rent their property out in less-than-rentable conditions which will cause many headaches in the future for both landlord and tenant. Renting out your property in good condition makes tenants happier, and puts you at ease in turn. Make sure your property is in rentable condition pre-move-in because repairs and renovations will be a hassle down the line. Go for property management company to arrange any services that may be required to have the property in prime condition, making for a hassle-free process of improving your investment property.
Not Hiring a Property Management Company
Investing in a property, as rental property, is one of the most effective investments you can make in Toronto right now, but being a landlord is far from easy. There’s enough hassle, paperwork services and much more to make anyone lose sleep, and without any years of experience, landlords often make avoidable mistakes that make their investments less profitable than they could be.
It is therefore very necessary to go in for a property management company with the experience and expertise to help you make the most of your investment property, taking care of everything from finding and screening potential renters, collecting rent, and managing your property from A to Z for happy tenants while still being profitable.