Top 10 Worst Property Management Mistakes
If these mistakes are occurring with your assets it is probably time to look for new management, first to stop the damage and second to remedy the potential of on-going issues and the exposure they present. Suffice to say these are all ….. bad.
1. Allowing a danger to public safety to persist. Suspect electrical, known illegal drug use, endangerment of children, domestic abuse, violent behavior. No good choices here. All or any similar issues must be addressed in real time once known.
2. Creating, encouraging or allowing fraudulent acts. No one should be skimming off the top. PM is a business. If you can not do the business without a very high level of integrity then getout of the business,please.
3. Keeping a bad hire. Other than fire or natural disasters keeping a bad hire is one of the costliest mistakes. It is one thing to make the mistake, quite another to allow it to persist and potentially cause more damage.
4. Bad tenant screening (or no tenant screening). Anymore, the expense of obtaining a background screening is really, really cheap insurance. Having this tool available and failing to implement is trouble waiting to happen.
5. Letting water run. In doors. Out doors. Running water is seldom a positive. Find the pliers. Call the plumber, the roofer, the candle stick maker- who ever has the answer Get that water stopped. Same day.
6. Allowing insurance to lapse. ‘nough said. Murphy’s Law lives here.
7. Ignoring maintenance calls. News flash… they do not go away. Good will is hard to earn, easy to lose. If management doesn’t care about your customers who will?
8. Ignoring renewals. The number one objective to retaining a stable income stream is making sure your customers are staying with a proactive renewal policy. No renewals policy, no stable income.
9. Lack of record keeping. Uncle Sam eventually catches up and when he does it’s like an ocean wave hitting a single piece of sand. Keep good records. File tax documents on time using quality service providers.
10. Avoiding the telephone. There are varying policies regarding telephone etiquette and responsiveness. Implement a policy and stick with it Your customers and potential customers want consistency. Having the attitude of “they’ll call back” is self-deception. “They” (potential tenants) do not. They talk to the next person that picks up the phone.
About This Blog
Multifamily Insight is dedicated to assisting current and future multifamily property owners, operators and investors in executing specific tasks that allow multifamily assets to operate at their highest level of efficiency. We discuss real world issues in multifamily property management and acquisitions. This blog is intended to be informational only and does not provide legal, financial or accounting advice. Seek professional counsel. For more information, visit: www.MultifamilyInsight.com
BEHIND THE VOICE
JOHN WILHOIT JR.
WILHOIT INVESTMENT NETWORK, LLC
John Wilhoit, Jr. is President of Wilhoit Investment Network, LLC, (WIN LLC) an owner and asset manager of apartments, condominiums and town homes. Mr. Wilhoit’s career has focused on high volume, large-scale multifamily communities including market rate and mixed-finance…