The Do’s and Don’ts of Property Management for Amateurs
Property management plays an important role in the field of real estate. Property managers ensure that tenants are heard, and their needs are met. They also ensure that property owners are well represented to the tenants and additionally follow up on rent and maintenance.
As a property manager starting out in the business, there is a lot for you to learn. To help you avoid making unnecessary mistakes, here are a few tips that you might find valuable in your learning process.
1. Know Your Market Before Making a Purchase
When searching for a property to buy, ensure you do your due diligence. Do your research and find out the most immediate need for space in the area and compare your findings with your business goals.
Is it a largely residential area or a business district? Ask yourself this question to avoid investing in property that may not yield the returns you desire, leaving you frustrated!
2. Learn Local Property Management
If you are managing property, find out the laws that govern property management in your area. Go to government offices and make inquiries on issues of tax, health violations, and anything else that might put you and your practice at risk.
In addition, search for property associations and liaise with them to get information on how property management works in your area.
3. Open Up Your Communication Channels
If you have a service to sell you want to make sure that you are visible to as many people as possible, especially if you are new to the field. Put yourself out in the open and even let people know that you are open to work.
Get a phone line and email address that are purely dedicated to your business. Leverage social media to build and engage an online audience. Set up an account on your preferred social media platform and encourage potential clients to reach out to you.
4. Work Closely With a Lawyer
As an amateur property manager, there will be some fine details about conducting business the right way which you may not know. There will also be contracts that need drafting, and you may not have the best knowledge.
Hiring a lawyer who understands the workings of commercial or residential property management to help you with local policies and drafting contracts will save you from small mistakes that might potentially cost you a lot.
The lawyer you hire will advise you on handling tenants and your rights as a property manager in your area.
5. Protect Your Investment
If you are joining the property management scene as an independent manager with your own properties, you need to secure your properties. Look into insuring all your assets with a reputable company.
Incidents such as fires and theft can do damage to your property and the renovation costs may be too high to foot from your pocket. A good and inclusive insurance cover will come in and cover some or all of the costs brought about by the accidents.
Depending on the cover type, some will even compensate your tenants for loss or injury during these accidents.
There Is a Lot to Learn!
Amateur property management doesn’t have to be complicated. As is with every field, there is a lot that you should learn before you consider yourself an expert. Look out for relevant forums and form relationships with managers who are more experienced than you to learn a few tips and tricks from them. Once you are confident in your work, property management will be one of the most enjoyable parts of your life!
