No one wants to deal with a horror show in real life, especially when managing your Fort Collins rental property. So, to help keep the nightmares on screen and away from your investment, here are 7 rental management horrors to avoid regarding your Northern Colorado rental property.
Rental Management Horrors to Avoid
Not Screening Properly
Bad tenants equal a rental management nightmare. From failing to pay rent on time or even at all to damaging the property, unqualified tenants can wreak havoc on your investment and peace of mind. The best way to avoid nightmare tenants is to create a comprehensive screening process. While you can’t screen for everything, a proper background and credit screening check easily reveals red flags that indicate whether the applicant will be a reliable tenant. Be sure to create a thorough application strategy, from how you’ll collect and screen to what your approval criteria will be. Check credit, criminal, eviction, and rental history as part of your screening process to search for any potential red flags. Avoid making decisions based on your “gut feeling” alone and review each applicant based on the same approval requirements.
Not Knowing the Laws
Knowledge is power when it comes to rental management, and knowing the laws that apply to property management can help avoid some seriously sticky situations. After all, ignorance won’t save you from liability and it won’t hold up in court. Make sure to familiarize yourself with all current and upcoming legislation, including Federal Fair Housing, Warranty of Habitability, and more. This is also where having a reliable property manager like Real Property Management Colorado comes in handy. After all, it’s their job to stay on top of what’s going on in their field.
Not Having a Solid Lease Agreement
Think of your lease agreement as the cornerstone of a foundation. It’s there to create a solid start for the landlord-tenant relationship while also creating a solid platform to stand on when things get rocky. A poorly drafted or outdated lease creates a crumbling foundation, which ultimately causes your rental management goals to fall apart. A strong and well-drafted lease creates the exact opposite effect. For that reason, we highly recommend consulting with a reliable real estate attorney to draft and review your lease regularly. This ensures that your agreement remains up to date with any regulatory changes and continues to provide a solid base for you and your property to stand on.
Another benefit of hiring a property manager like Real Property Management Colorado is we’ve already done the hard work and heavy lifting for you when it comes to building a solid lease agreement. Whether you’re looking for full management services or just need help finding a qualified tenant for you to manage, we’ve got your back!
Not Handling Maintenance Appropriately
Things break. Appliances need repair and emergencies strike at whim. There’s no way to avoid maintenance at your rental property. However, there are ways to avoid maintenance-related horrors by managing requests and repairs appropriately. Once you’re notified of an issue by your tenants, make sure to address it quickly and efficiently. Letting things bubble up on the back burner only leads to more problems, and sometimes pure disaster! Address each request as they arise. Evaluate what needs to be done, whether it’s cosmetic and can wait, a standard repair, or an emergency that must be solved quickly, then act accordingly. Keep the lines of communication open throughout the whole process, from start to finish.
On top of addressing maintenance repairs as they come up, another key component of rental management is staying proactive about preventative maintenance. Seasonal maintenance and routine servicing help keep your Fort Collins rental property well-maintained, while simultaneously catching smaller issues before they snowball into full-blown horrors.
Not Handling Accounting Correctly
From monthly rent collection to security deposits, rental management accounting can easily become a nightmare if done incorrectly. After all, your rental is a business. Failing to manage it like one creates a whole world of problems, financially included. Keep track of your rental finances closely and be sure to separate funds that belong to your tenant, like their security deposit, from your own to avoid misplacing important funds.
For this reason and more, it’s highly important to keep and maintain detailed records when managing your rental property in Fort Collins. From receipts for rent collected to maintenance bills and expenses to other expenses related to rental management, be sure to keep track of everything. And if you’re not sure how to do so or the thought seems daunting, hiring a professional property manager can help.
Not Completing Routine Inspections
Like maintenance, completing routine walk-throughs of your property is a big part of rental management. Failing to put eyes on your property during the term of the lease can lead to problems going unnoticed, such as lease violations or incomplete repairs. Proper rental management involves 3 types of property evaluations: move-in, move-out, and routine walkthroughs.
Move-in inspections or evaluations are simple walkthroughs to document the condition of the property before your tenants take possession. These create a snapshot of how things looked that you can then refer back to when evaluating the property after the current tenants move out. Knowing and documenting the condition at move-in is a crucial part and can even help in the event a dispute arises when the tenants vacate. Take pictures and thorough notes of the condition. Your tenants will do the same.
Regular walk-throughs during the term of the lease help to identify problems before they escalate. From finding unauthorized pets or occupants and other lease violations to catching minor leaks under the sink before they get worse, completing routine inspections plays a vital role in preserving your property. They’re also a great time to complete any preventative or seasonal maintenance, such as changing furnace filters, and ensuring your tenants are satisfied with the property while on-site. These evaluations are win-win for both landlords and tenants and serve an important function of rental management. Make sure to schedule them at a minimum of twice per year and follow access requirements as outlined in your lease agreement. Document the condition of the property while respecting the privacy needs of your tenants.
Last but not least, the move-out evaluation plays an important role in many ways, most importantly in processing the security deposit accurately. Failure to process and return the deposit in accordance with the lease and laws can cost you, quite literally! Make sure to thoroughly document the condition once the tenants have fully vacated the property. This way, you can document the property without worry of damages being hidden behind boxes or furniture. Take multiple pictures and notes, then compare them to any move-in documentation you have. Remember that documentation is key.
Not Hiring a Reliable Property Manager
Rental management isn’t always easy. It involves a lot of moving pieces, knowledge, and time. DIY management takes time and while you may save money, you’re spending a lot more of your own time. And while there’s no shortage of property management companies available in Fort Collins, choosing the wrong one can be its own horror movie. For this reason, it’s important to evaluate your needs and time commitment against the services provided when choosing a reliable property manager. Research companies and prepare a list of questions and scenarios when interviewing property management companies. Then decide what’s best for you.
Having a reliable partner to navigate the challenges of rental management makes a world of difference. Real Property Management Colorado understands this and more. It’s why we’ve dedicated our entire business model to showing who and how we care. If you’re ready to experience remarkable results from a team that truly CARES about every aspect of rental management in Fort Collins, Real Property Management Colorado is here for you! Give us a call today or check us out online.
Rental management in Fort Collins can be tough, but it doesn’t have to make you lose sleep at night. Avoid the horror show by following these helpful tips and achieve the peace of mind that comes with reliable property management.
