7 Mistakes That Can Hurt Rental Bottom Line

Investing in real estate can be a smart way to generate long-term wealth, but managing properties effectively is crucial for success. Property managers play a crucial role in helping investors and housing providers avoid common mistakes that can hurt their profits. Here are the seven most common pitfalls to watch out for:

1. Inadequate tenant screening: This can lead to lost income from unpaid rent, costly evictions, expensive repairs, increased insurance premiums and decreased property value. It's crucial to thoroughly vet potential tenants to ensure they have a good financial history and can pay rent on time.
2. Neglecting property maintenance: This can cause damage that decreases property value and frustrate tenants. Property managers should coordinate repairs, arrange for cleaning and inspections, and proactively handle other property maintenance needs to keep the building in good condition.
3. Failing to budget for repair costs: Unexpected maintenance and repair expenses can sink property profits. Property managers should help landlords understand the fixed and unexpected expenses that come with maintaining a rental property and budget accordingly using the 1% rule (reserving 1% of property value for maintenance expenses).
4. Setting the wrong rental price: Renting too low or too high can result in lower profits or longer vacancy periods. Property managers should help landlords research the local market and set a competitive rent price to maximize profits, adjusting it as needed for consistent cash flow.
5. Not having adequate insurance: Insurance protects rental properties from accidents, natural disasters and other losses. Without adequate coverage, landlords may have to pay out of pocket. Property managers should encourage landlords to review their insurance coverage and add policies for rent loss, wildfires, earthquakes and flooding.
6. Neglecting tenant customer service: Good customer service helps maintain tenant satisfaction and good tenant-landlord relations. Property managers should resolve maintenance issues quickly, establish open communication and set clear expectations to reduce the risk of misinformation.
7. Failing to plan for vacancies: Despite rental demand, property managers should plan for losses from vacancies by setting aside funds to cover the loss of rent and marketing costs. Property managers should help landlords make necessary repairs and upgrades to the property to make it more appealing to prospective tenants and fill vacancies quickly.

By avoiding these common mistakes, property managers can help landlords save time and effort, maximize profitability and protect their bottom line.

Ines Garcia PA

Miami-INES GARCIA

HER PROMISE

Working with Inés is not only about her experience, is not only about how much she cares…  it is also about passion to keep learning every day in an ever-changing industry; all this along with communication which is key and the cornerstone of every relationship.

A long time South Florida resident with a deep knowledge of the different lifestyles you can enjoy in Miami-The Capital of the Americas.

 

Positive Impact:
Her goal is to positively impact the people around her transforming the experience when buying and selling real estate in a relationship based on education and enjoyment.

Trust:
What you see is what you get… transparent relationships and a lot of communication.

Congruence:
She follows her heart and her customer’s needs and interests lead the relationship.

The REAL Customer Experience:
She applies her knowledge and experience to simplify the complexities of the real estate process for you. 

HER STORY

Born and raised in Venezuela, Ines moved to Miami in the year 2000. She owned a Real Estate Office in Venezuela for the largest network there, for 5 years prior to her moving to the USA.

Having lived in Broward and Dade, and selling in several areas, provides her broad perspective of the South Florida Real Estate Market. Currently a Downtown Coral Gables resident who enjoys everything about the city… especially the ability to walk to restaurants, the super market and around the Granada Golf Course.
 

Ines has an architecture degree from the Universidad del Zulia in Venezuela and holds an MBA from the University of Miami. Her background provides a strong foundation to share insights that help her customers make informed Real Estate decisions.

Currently a Real estate Advisor with KW Legacy. During her Real Estate career, Ines has worked both in sales and management, being the managing broker for several years with one of the largest companies in South Florida.

Previously participated in the Miami Association of Realtors as a member of the Grievance Committee, and prior to that, served on the Professional Standards Committee at the Fort Lauderdale Association of Realtors.

Ines actively participates in “Fundación Mayacuchas”, that helps organizations in Venezuela providing food and medicines along with used clothing that is distributed among the people who need it most.