Lesson:
“You too can do this.” A very common misconception among new landlords is that they think they can properly manage their own buildings with minimal issues. There are plenty of influencers and the like that have built businesses out of telling people why they can do this and how they can save money doing it on their own. We’ll review some discussion points in the coming months that will include examples of how this approach could hurt you and why we strongly suggest a property management firm.
Tenant communication: Sure, it can be great when everything is humming but when push comes to shove, communication with tenants can get awkward. An example of this we’ve seen as in incoming property management solution was one where a tenant reminded the landlord of an old friend, so they grew close over the years. With some small rent increases or none at all as a gesture of friendship, this apartment started to lag behind the market rents. Taxes and building costs rose as a result and unfortunately that apartment did not carry its share of the building costs. Here is where it got awkward.
The landlord had to go to the “friend” and explain the sudden drastic increase. But of course, the tenant was upset and took the landlord to court to fight the new rent amount.
Solution:
One way a property management company can assist a landlord is an arm’s length transaction.
Given this scenario, had Clever Property Management been hired earlier, we could have stepped in each year, on behalf of ownership, and raised rents and explained the increases while keeping the friendship intact.
If you need answers don’t forget to be Clever, ask a professional.
