Managing Your Own Rental Property: The Hidden Risks You Can’t Afford to Ignore
Are you equipped to thoroughly vet a potential tenant? This means conducting criminal background checks, credit screenings, and verifying employment and income. If you’re unsure how to navigate this, it’s wise to consider hiring a property manager who has the resources to access these essential records and knows the benchmarks for identifying reliable tenants. Many individuals who have been denied by property management firms will target homeowners who may lack the means to carry out these checks.
Do you have legally sound leases that safeguard both you and your tenant? As a Realtor, member of the NC Realtors PMD (Property Management Division) and the National Association of Residential Property Managers (NARPM), we have access to lease agreements that are updated annually. As a participant in the forms committee, we actively recommend changes to improve these contracts.
Dear property owner, do you document the condition of your property with photographs before a new tenant moves in? If not, you should! This step provides undeniable evidence of the property’s state, eliminating disputes over its condition when the tenant moves out.
What about insurance requirements? Are you mandating that your tenants carry a liability policy of at least $100,000 to cover potential damages to your property? This stipulation is included in our state lease agreements.
Do you have clear policies regarding certain breeds of dogs, trampolines, or swimming pools? Most property management companies present their policies on these issues on their website; do you?
Are you providing your tenants with new air filters delivered quarterly? We do this so tenants have no excuse not to replace them immediately upon arrival. This proactive approach eliminates the need for tenants to remember to purchase filters from the big box store.
Do you conduct a property walkthrough approximately 9 to 10 months into the lease? This inspection, accompanied by a condition report with photographs, can influence your decision on whether to renew the lease. If you decide not to renew, issuing a 30- to 60-day written notice is the proper course of action. Walkthroughs also reveal unauthorized occupants or pets—a common issue that our leases allow the tenant to address within 5 days, after which fines may be imposed for breaches of contract.
When it comes to pets versus service or emotional support animals, how do you differentiate between them? Many in the property management field collaborate with companies that can verify whether an animal is a pet or a service animal, which alleviates some of the pressure on you.
Finally, are you aware of the rental market and how to competitively price a rental property? Property managers have numerous methods for assessing property values and stay informed about economic factors that may impact rental prices. Real estate values vary significantly from one locality to another; for example, a 3-bedroom, 1-bathroom brick ranch may be worth considerably different amounts just a few miles apart.
There’s so much to know that can easily be overlooked without the guidance of a licensed Realtor acting as your property manager in North Carolina. Our mission is to find the best tenants for you, ensure that your leases are up-to-date, and provide maximum protection for you and your property. Don’t hesitate to reach out to a local property manager TODAY to discover how we can assist you. We look forward to the opportunity to work together.
Contact Vickie McDaniel for all your property management needs at: TheGatetoHome.com, 919-732-5858. 236 Orange Grove St., Hillsborough, NC.
