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Top 5 Myths About Property Management BusinessDecember 27, 2018
The property management business has its fair share of myths. These are beliefs that may seem accurate to landlords and property managers who have just entered the rental market, but experienced property management professionals can debunk these fantasies with one hand tied behind their back.
Let’s take a look at popular property management myths we’ve heard and are ready to expose:
Myth #1: I will get income by doing absolutely nothing.
There’s this assumption out there that once you’ve started managing rental properties, you can put a crown on your head, sit on your throne, and watch rent payments being automatically and regularly deposited into your bank account. Such a fairy tale has nothing to do with real property management. This business isn’t about passive income. It’s not even the type of business associated with minimal effort on the part of landlords. On the contrary, it’s a competitive and tough field requiring hard work and commitment. The daily routine of a landlord or property manager involves plenty of hard work and effort. You won’t succeed if you’re not constantly upgrading your landlording skills and following relevant property management trends. And on top of that, to become a successful landlord you need to actively participate in renovating your rental properties to make them appealing for prospective renters.
Myth #2. I won’t need anyone to assist me.
Being a DIY landlord means dealing with renters, vendors, homeowners, and coping with property-related issues which arise from time to time. It’s doable and a good strategy if you manage one or two properties, but what if you own more than a hundred units? Imagine how much stress you’ll experience without any assistance or support. You’ll probably need some advice or networking with other professionals in the field. Property management is considered a full-time job, and doing it alone makes things even more difficult. Fortunately, there are various forums for landlords and property managers that unite professionals, allowing them to share experiences and ideas.
Myth #3. Property management software system is a headache.
The success of your business depends upon several essential factors. It’s contingent not only on current rental market conditions, but also on the approaches you choose for managing and maintaining your properties. If you’ve already had a painful experience managing your rental properties via a property management system, you’re unlikely to want to go down the same road again. But here’s the truth—there are multiple property management systems that offer plenty of useful options and deliver excellent customer service. With the help of one of these systems, you can grow your business and increase your net income. So don’t be afraid to give them a second chance.
There are more benefits to using a property management system than you think. First and foremost, many property management software systems—and TenantCloud is not an exception—provide online rent payments and work order management that can simplify a landlord’s life and ensure a better tenant experience. Another misconception that might prevent you from utilizing a property management software is its high prices. This is simply not true. You can find free software solutions that will save you time and let you run your business on the go.
Myth #4. I know best how to choose tenants for my rental.
It’s not easy to handle difficult tenants. The hardest part is finding diligent renters that take care of the rental and provide timely rent payments. With that in mind, consider running a background and credit check on prospective renters. Trusting your intuition is great, but choosing a tenant on the basis of intuition isn’t the best idea, since there are many crucial details you could miss, like previous evictions or criminal records. The background and credit check options available within property management software can help you to stay safe and choose the most reliable and high-quality candidates.
Myth #5. I can do all maintenance myself.
DIY landlords often rely on themselves when dealing with work orders and repairs. But when it comes to emergency maintenance calls and urgent work orders, even a jack-of-all-trades will call a service professional to nail down the issue. Most tenants don’t care if you’re busy or tired; if they’ve noticed a leaky kitchen faucet, they expect you to fix it immediately. So don’t underestimate the power of collaboration. Assign maintenance requests to service pros whenever you feel unsure about your handyman skills.
Any other property management myths you’ve busted? Share your experience by leaving comments below. :)