Many people ask me if I have any landlord tips for property owners who decide to self-manage their investment properties. In my experience with property management Prescott, there are four common mistakes that most landlords make, and today I’m providing recommendations on how to avoid them.
Document the Property Condition
Prior to placing a tenant, document the cosmetic condition of your property. Not a lot of landlords do this, but it’s essential. You can make a written report or get a digital camera, walk through the house, and take hundreds of photos of everything; the interior and the exterior. Keep those photos because they will help you if there are any discrepancies when a tenant moves out. That documentation will support you if there are disagreements about the security deposit or issues with its disposition.
Screen the Tenants
Take the time to actually screen the tenants. Lots of owners tell me that they get a good vibe about a person, and therefore rent out the property to that applicant. This is not a good idea. Take the time to conduct a thorough screening. Pull a credit report, conduct a criminal background check, and call past rental references. You also want to verify income and employment. Dig into a prospective tenant’s past because once you move them in, you’re stuck with them. So do the work ahead of time.
Use a Strong Lease
Sign and execute a strong lease. I have seen a lot of generic one-page leases and leases that were downloaded from online. These are not all-inclusive and they don’t protect you or your asset, so get a lease that does.
Conduct Periodic Inspections
The last thing I suggest is that you conduct periodic, scheduled inspections while the tenant is in the property. In Arizona, you have to give 48 hours of notice before you enter the property. So, call and schedule with the tenant, then go inside and take a look. I tell tenants we want to look for maintenance concerns that we might want to address. This allows us to see how a tenant is living and ensure the tenant is following the terms of the lease. You definitely want to do this before you renew a lease.
We’ll talk more about all these points, so make sure you join us on future videos and blogs. If you have any questions about Prescott property management in the meantime, please contact us at Rent Right Management Solutions.