Common Mistakes by DIY Property Managers

To manage or not to manage is not a question in real estate. A real estate property requires routine management and maintenance, for which owners hire a property manager. However, many owners choose to manage their property themselves, but the complexity and particularities involved in property management often get them into difficult situations, costing them more in the end.

Here are nine pitfalls owners get into being their own property managers and ways they do it wrong:

1. Not Collecting a Bond

A bond protects an owner from financial losses in such a situation. DIY property managers who fail to collect bonds from their tenants may end up paying for the unpaid bills or damages caused by tenants.

2. Not Completing a Condition Report

A condition report is a critical tool in real estate that outlines the condition or state in which the owner handed over the property to the tenant. It enables the owner to return the bond efficiently and provides powerful evidence when a dispute occurs.

3. Not Preparing a Lease

Many DIY owners do not prepare a lease or a written agreement when renting out their properties and end up in trouble when a conflict occurs. An experienced property manager takes care of the lease and other formalities to protect owners.

4. Not Conducting Routine Inspections

Landlords managing their properties often fail to conduct routine inspections to address property damage and are left with heavy repair fees later. Inspecting the property is the primary duty of an owner to ensure their home systems are functional.

5. Not Undertaking Maintenance

A property owner has many property maintenance tasks to accomplish. Failing to do regular inspections means failing to notice the damages, leading to maintenance delays and high costs.

6. Not Recording Rental Payments

Another common mistake DIY owners make is not recording the rental payments. As a result, they may miss out on late rent payments, and the tenants may also take advantage of this.

7. Not Conducting Tenancy Checks

Owners being property managers, may fail to do tenancy checks and get insights into who they're letting their property out to. As a result, they may end up with unreliable tenants.

8. Not Understanding Tenancy Laws

Knowledge about landlord-tenant laws is important for the rental operation to run smoothly. And this is not something one can learn in a few weeks. Owners often do not have the required knowledge and end up in trouble

9. Not Complying with Legislation 

When owners don't have the required knowledge, they are at risk of involuntary non-compliance with the legislation, which can put them in a lawsuit.

These are some common mistakes many DIY owners can make and fall into traps that can cost them dearly. Avoiding this requires preparing a lease, inspecting the property, doing tenancy checks, and hiring an experienced property manager.