We have listed a few key things to check before selecting a property management company to manage your home.
The below is a summary of The Accidental Landlord podcast.
1. Fear of the unknown:
- Many accidental landlords default to hiring a property management company due to fear of the unknown responsibilities and challenges.
- This often leads to choosing a company without proper vetting.
- Jay emphasizes the importance of learning about self-management and developing systems to overcome the fear.
2. Not treating it like a business:
- Jay's past experience of mixing personal relationships with tenants led to negative outcomes.
- He stresses the importance of having clear policies and procedures in place to maintain professional boundaries.
- He also advises against personal gestures like gift cards, as they can open doors to manipulation and exploitation.
3. Improper tenant screening:
- Jay recounts his early mistake of renting without credit checks or background checks, leading to a troublesome tenant.
- He emphasizes the importance of thorough screening processes to avoid future problems.
- He suggests systems like taking applications before showing the property and using filters to select qualified tenants.
- Peter and Jay's property management company uses tenant retention strategies like gift cards at holidays to foster positive relationships and encourage longer stays.
- The importance of policies and procedures is highlighted, especially in tenant-friendly states like California.
- Jay contrasts his different approaches to self-management across his past and present experiences.
Overall, the conversation emphasizes the importance of education, planning, and professionalism in managing rental properties for successful outcomes.