Do you have the gut feeling that all is not well with your investment property? Giving control of your rental property to property managers can be a wise decision, but it can backfire if they do a poor job. Unfortunately, many people ignore initial clues that something's wrong and lose out in the end.
If you're here, there's a chance you suspect that the smoke you see means a fire somewhere. Here are a few common signs to look out for that may help confirm your suspicions.
Unreasonably Long Vacancies
Gaps between tenants are natural and unfortunate, but there's no reason they should drag on for long. Property managers in Folsom should have an easier time filling rental units because the median earnings in Folsom are above California's average, while the median rental prices are under the average.
Extended vacancies can signal that the property manager isn't screening tenants fast enough or marketing properly. It can also signal that they've misevaluated the property and have set the rental far too high.
Problems With Tenant Screening
Bad tenant screening results in more prolonged vacancies if the property manager takes too long. However, when the tenant screening process is deficient or non-existent, the symptom feels like an unbroken chain of bad tenants.
A good tenant screening policy is crucial to protecting your investment property. If you suspect that your property managers aren't conducting proper screenings, or if they've convinced you not to screen tenants, it's time to take this responsibility out of their hands. However, you can only do that when the current leases come to an end.
Poor Communication
As custodians over a significant portion of your net worth, you're allowed to expect transparency and clarity from your property managers. Long and confusing answers to simple questions can indicate that you aren't getting the whole story.
Another bad sign is when it takes unreasonably long for your agent to get back to you. At best, this can mean that they're busy and need to hire extra hands. At worst, it could mean that they're intentionally avoidant.
A Bad Approach to Maintenance
Although property managers don't pay for repairs and maintenance themselves, they do make your life easier by dealing with contractors on your behalf. Slow or no response to maintenance makes tenants unhappy, which costs you in the end.
Another problem is if the property manager doesn't approach property damage correctly. You should also not be left holding the bag if tenants are causing major damage.
Get Property Managers You Can Trust
Replacing a property management company that isn't doing its job can save your investment. Long vacancy periods, poor screening, and a lack of communication can all be signs that it may be time to get new property managers. Slack maintenance is a crucial indicator because it can cause larger financial and legal problems.
The best property management advice for these situations is to act sooner rather than later. At Residential Equity Management, we have industry-leading property management and financial expertise. For more great property management tips from the best property managers in Folsom, CA, contact us today.
