One of the most essential reasons to look for professional property management in Phoenix, AZ is that you’ll be protected from mistakes that can become quite costly. A few errors seem to repeat themselves with landlords on a regular basis, and you want to avoid them.
Poor Tenant Screening
Some landlords don’t do any tenant screening at all. Or, they’ll just collect an application and do the bare minimum when it comes to background checks. You need to have an in-depth and consistent screening process in place. It will save you from nearly every possible disaster that can occur with a tenant. Make sure you’re looking at credit history, employment and income, as well as criminal histories. If you see collection activity from past landlords, you know this isn’t a potentially great tenant. When you see felony convictions or wide gaps in employment history, you should worry about whether you’ll have a successful rental experience with that tenant in place. Do a complete screening of anyone 18 years of age or older.
Mismanaging Security Deposits
If you don’t collect a security deposit, you’re putting yourself at great financial risk. Most security deposits in Phoenix are the equivalent of one month’s rent, and sometimes the amount is one and a half month’s rent. If the tenant leaves damage behind after moving out or owes past rent at the end of the lease, you can use that security deposit to cover the costs. The security deposit is fully refundable, and for your responsible tenants, that will provide the necessary incentive to take good care of the property.
Enforcing Rent Collection Policies
When your lease says rent is due on the first of the month, the tenants need to know that you expect it on the first of the month. If you don’t enforce this requirement, the tenants will consistently pay late, and they will not take your requirements or the lease seriously. When rent doesn’t come in when it should, give the tenant a call or send a message. You should also start the process of serving a 5 Day Notice. That will get their attention and help you enforce the due date.
Conduct regular inspections at your property, even after you successfully place tenants. You don’t want to interrupt their privacy, but visit the property at least two or three times a year to make sure the property is in good condition and the tenants are following the lease. Schedule these inspections quarterly, semi-annually, or at any period that you feel is appropriate. It’s a mistake not to visit your property once in a while.
These are the most common mistakes that landlords tend to make. If you need help avoiding them, please contact Rentals America.