Property owners and managers need to reduce potential liability and put in place a property management system in order to avoid costly mistakes. Daily Real Estate News list 3 potential mistakes that can affect the bottom line of owners or property managers in residential or commercial property management.
The property owner or manager puts together a makeshift lease agreement rather than drawing up a lease with their attorney and ensuring that it complies with local and state laws.
The property owner or manager does not have the tenant sign a move in and move out form that that stipulates the condition that the apartment is in at move in and will therefore need to be at move out. In addition, the form should include pictures of the property as well as serial numbers for appliances to ensure they are not replaced or taken when the tenant leaves.
The property owner or manager does not keep the security deposit in a trust account and therefore may be liable to pay the interest that should have accrued in the trust account.
Other Mistakes Include
The property owner or manager fails to screen potential tenants credit, rental references and income which can be a costly mistake that can lead property owner to become a victim of a Professional Tenant.
The property owner or manager does not inspect their property on an annual basis which would allow them to see any maintenance issues that could turn into costly fixes or tenant lease violations that can cost the owner money later.
Avoiding these mistakes seem easy enough, however, many property owners or managers fail to prevent or correct these mistakes because their property management system is not effective or organized. Software for property management is essential to staying organized and efficient while preventing potentially costly mistakes. RISSOFT’s software for property management has features to help commercial property management companies as well as property owners avoid the mistakes listed above including having the ability to run credit reports for tenants online, a lease template creator and a reminder system.
This post is provided by RISSOFT Residential and Commercial Property Management Software, specializing in innovative and cutting-edge property management software for all 50 states. Request a demo or contact us today to receive more information.
Disclaimer: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.