You and your property deserve better. Your Florida property manager shouldn’t take days to return your calls, and your house shouldn’t be getting repaired every other month. This is not what good property management looks like.
Don’t fall into the sunken cost fallacy and stay with a poor performing team in hopes they start magically doing well. If your management team shows even one of the signs we outline below, you should know that your property rental isn’t doing as well as it could be.
Ask yourself, does your property suffer from any of these mistakes?
Multiple Bad Tenants
There’s nothing more frustrating than having awful tenants in your rental property. Your property is a valuable investment and needs to be treated as such. There’s no reason to not guarantee that those living in your property will pay the rent on time and take good care of it.
Only allowing qualified residents in your rental property secures your ability to maintain a profitable property. Any property management company worth its salt will vet tenants. Every applicant’s identity, proof of income, and references should be verified. But that’s only the bare minimum. Your property management company should also conduct thorough face-to-face interviews. If your current company isn’t doing all this work for you, it’s time to change.
If you don’t change, then a problematic tenant might slip through. That tenant could cause property damage, take part in criminal activity, or be a nuisance to neighbors. Whether it’s short term or long term, all these problems cost you money.
Nagging neighbors aren’t just a nuisance, they hold the power to directly affect the rent-ability of your property. Happy neighbors make finding high quality tenants easier. Unhappy neighbors make it impossible.
If any of the above behaviors have already started showing up, don’t wait any longer to find a new team.
Late or Incomplete Rent
Let’s be clear, the purpose of having any rental property is to make money. That money comes from collecting rent in exchange for a house and on-site amenities. If someone is living in your property every month, rent should be collected every month. No exceptions.
Well, there is one exception … tenants can always pay upfront if they’d like.
A proper lease will have all the terms for paying the rent laid out. This includes the due date, late payment requirements, and penalties. It’s the role of your property management team to collect the rent and make sure the terms of the lease are met.
Any team that fails to do follow-through is not only hurting your income but the tenant is hurt as well. A tenant that regularly can’t make the full rent payment, or is always late, is living above their means. Repeated allowances that go against lease terms prevent the tenant from moving to a more suitable residence.
If your rent isn’t being deposited into your account, in full, every month … it’s time for a new property management team.
Stagnant Rental Rates
The relationship you have with your property management team should be long term. Over the years of that relationship, your property value and rent should go up. Not only to counteract inflation, but the neighborhood should rise in value too.
If your rental rates haven’t changed in the last couple of years, find out what your neighbors are charging. If they are getting higher rents, that’s a clear sign to look for a new property manager.
There are of course exceptions to a constant rise in rental fees, such as natural disasters, recession, or time of year. But, your property management team should be able to explain in detail any exceptions.
If you own a property for long enough, it’s going to need repairs. Repairs are a part of the investment and aren’t a cause for alarm.
Repairs to your rental property are way too expensive or way too common.
Now, there are two common reasons why house repairs are expensive. One is a sign of a good management company, while the other should serve as a signal to switch property management teams.
A good Florida property manager will find high quality traders who work for a fair price. This kind of expense is acceptable because it helps prevent future repairs.
The other reason for expensive repairs is your property manager ignoring smaller minor repairs. Minor repairs don’t cost much, even when they pop up a few times a year. But when plumbing, electrical, or flooring problems get serious, the cost goes way up.
Your property management company should seek your approval before paying for expensive repairs. So make sure to have them explain where the cost is coming from. You should never get any unauthorized charges for significant repairs.
Would you buy a stock if you could never check the price? Of course not. It’s your investment, and you should know everything about it.
It’s the same with owning property.
As the owner, you should always be kept in the loop. This includes any and all vital information that relates to your property. You should be able to easily check market fluctuations, maintenance costs, repairs, and the tenancy at large.
The keyword phrase here is “be able to”, because not all owners care about this information. Depending on your preferences, your company may provide monthly or quarterly reports to keep you informed.
While reports may come in monthly, as the property owner you should be able to pick up the phone and get an update at any time.
If you can call your property management company on any given day and get this information, you’re in good hands. This shows that your tenants are communicating well with the management company. It also shows your company is giving the necessary attention to your rental.
Now, if you make that phone call and no one answers? Red flag.
If you leave a voicemail and no one calls you back? Major red flag.
Simply put, do not put up with a property manager who is vague on details. A team that’s vague on details will be vague on results too.
Being detailed includes bad news. The best sign of a high quality property management team is one that gives you the bad news, followed by the solution.
Your Property Management Solution
Expert property management is critical for the success of any Florida rental property. Hiring an established management team will ensure you avoid all the problems covered above.
Our management team minimizes stress while maximizing your property’s value. If you want a better rental management company for your investment, contact Suncoast Leasing & Management today at 941-993-2020