Read about 6 mistakes landlords commonly make that can cost them money. Hiring a property management company in Central Oregon can help protect your investment.
As an experienced property management company in Central Oregon, we’re always looking for ways to help landlords find ways to become more efficient and effective. That’s why we offer ways to create more reliable revenue streams, such as with our online payment portal that all tenants can easily use. But those new to investment property in Bend and surrounding locations may not be doing everything they can to manage expenses and profits in the best way. Avoid these mistakes and you’ll avoid unnecessary costs, too!
1. Not Calculating Property Maintenance
Maintenance should always be part of your cost calculations and should not just be an occasional consideration. Rentals in Central Oregon need both summer and winter maintenance to look their best and avoid problems, and that requires two very different types of services. Once you have planned for maintenance and repairs, it becomes easier to find cost-effective options to manage them. Property management services can be an effective option, as we can take care of repairs and partner with the right contractors around the city. The better the maintenance, the fewer pricey repairs will have to be made as well!
2. Assuming a Property Will Always Be Rented
We are happy to help you achieve the best rental uptime possible, but it’s a financial mistake to assume a property will always be rented. The real estate market in Central Oregon is very hot right now and we know that it seems like you will always be able to find tenants, but things can change over time. Landlords shouldn’t take on a mortgage or similar expenses if they cannot afford to maintain the property when no tenants are present.
3. Ignoring the Local Market
Rental prices and similar factors can be very localized, which is important to remember when purchasing investment property in Central Oregon. A rental rate that may work well in Bend could be too high in Prineville, for example – or a rental on one side of town may not rent as much as one in a different neighborhood. Our property management services in Central Oregon can help landlords plan for the right pricing decisions.
4. Not Vetting Tenants Properly
A tenant vetting process is a necessity to help narrow down options to high-quality tenants that will be able to make reliable payments in the long-term and reduce turnover for your property. At minimum, landlords should be checking for income history, employment history, the means to make payment, and references from past landlords or others, as well as basic background checks. Without these steps, landlords risk running into a series of tenants that become unable to make their payments.
Keep in mind that high turnover has ongoing costs of its own, including new cleaning, repair, and marketing costs, so vetting tenants to keep turnover down also has additional advantages.
5. Paying Too Much for Advertising
Landlords don’t always know where and how to advertise their rental properties the right way, especially if they are new to an area. This can lead to marketing cash being wasted where it doesn’t have much impact! One benefit of a property management company like Mt. Bachelor is that we can help you with effective, targeted advertising that gets results instead of wasting time and money.
6. Not Understanding Oregon’s Complex Tenant Laws
As a landlord, you may not thoroughly understand Oregon’s complex tenant laws or stay abreast of changes in the laws. Our team at Mt. Bachelor Property Management keeps up to date on current laws to protect your investment. If you’re not familiar with the laws and serve an incorrect notice to a tenant, you can be held liable or three times the rent in compensation to them as well as any legal costs.
