Are you thinking of diversifying your investment portfolio by becoming a property manager? I'm Cindy Adkins, a local real estate agent, and I've helped people here in beautiful New Smyrna Beach realize their dream of becoming property management investors. But buyer beware, renting property can be more work than you realize. Make sure you do your homework so that your investment dream doesn't become a nightmare!

Property Management Mistakes Involving Tenants

Have you ever met someone and just got a good feeling from them? Or maybe you've experienced the opposite, immediately disliking someone for reasons beyond your comprehension. While gut instincts may have their place, they are no reason to fail to do your homework when considering potential tenants. Accordingly, the first two mistakes are:

• Failing to screen
• Tenant discrimination

Don't be held hostage by your gut instinct. Always perform background checks on all potential tenants. Have them fill out rental applications that allow you permission to conduct criminal background checks, credit reports, and employment verification. Additionally, be sure to verify their identity through a valid id such as a driver's license or passport. Doing this for every single potential tenant and then picking the best candidate based on these outcomes will keep you from discriminating against otherwise viable renters. It is also a good practice to stay aware of fair housing laws as well.

Dodgy Documentation

Even when you do your due diligence, you could still find yourself dealing with a smooth operator. On the other hand, a hard-working tenant could make an honest mistake. When dealing with strangers, it can be hard to tell the difference between miscommunication and a slippery snake. That brings us to our next two mistakes:

• Weak documentation
• Unenforceable rent fee policy

You need legally binding documentation that clearly outlines the terms of the rental agreement. You need more than just a rental agreement; however, you need records of all interactions. This could include rent due dates, pet policies, and any other necessary information. In the case of rental fees, you must set clear expectations on due dates and be ready to enforce late fees if required. Your relationship with the tenant must be clear, and you must be prepared to assert your position, following through with late charges and even evictions if necessary.

Keeping Pristine Property

Even with the best tenants, managing a rental property should not be considered a truly passive income stream. Forgoing maintenance can end up costing you money and even cause harm to a tenant's health for which you are responsible, both morally and legally. This leads us to our final mistake:

• Failure to keep up with routine maintenance.

To avoid mishaps, schedule routine inspections yearly, quarterly, or biannually, depending on the property's age. Ensure you have a checklist and a digital camera to document and follow up on any problems you discover. If you don’t have the expertise to evaluate your property, consider asking your real estate agent for the name of a reputable property inspector to help you out.

Contact Us

Now that you're ready to invest in property management, you'll want to make sure you see the best properties New Smyrna Beach has to offer. I'm Cindy Adkins, an area native and real estate agent for Kincaid Reality, and I have the knowledge you need to help you find the best properties available. Give me a call; I can't wait to show you around!