I was speaking to a gentleman last month who shared with me property management lessons he had learned over the last year. He inherited his parent’s house and made the decision to self-manage the property. It worked out well for two months, then quickly went downhill. Here’s what happened.
My “friend” made cosmetic repairs only – minor touch up paint, and cleaned the carpet (did not replace, even though his parents had cats in the house for years). He didn’t check the major systems (AC, roof, plumbing, structure) – he didn’t think that was necessary.
He advertised on Craigslist and found someone who would rent at the price he was asking. He didn’t think it was necessary to check the renter out, after all, his parents had taught him a handshake was as good as gold.
He used a one-page lease form he had downloaded from the internet. The “lease” was fully-executed, but he failed to ask for a copy of the driver’s license or social security card from the renter, nor did he have any emergency contact information for the renter.
He received his rent on time for the first two months. Then he started receiving the payments later and later. Finally, by the fourth month, he wasn’t receiving anything and he couldn’t reach the person living in his investment home.
My “friend” found a professional property management company who was able to evict the tenant he had placed in his home, make necessary repairs, advertise for a higher rent, and get a qualified tenant in place. The headaches are gone and he’s able to sleep at night. He says finding a professional property manager was the best decision he ever made.
Property managers take the worry out of management:
- Take emotion out of investing
- Thorough tenant screening
- Work with city registration programs
- Repairs and maintenance through qualified vendors
- Enforce the lease and follow property code
- Collection of rents, disbursement of funds, and accounting records
- Communication with tenants so owners won’t have to
- Representation in small claims court
That’s what Efurd Properties does – give us a call – we’re easy to reach!