4 Seattle Property Management Missteps
If you have residential or commercial property in the Seattle area you’ve probably come to the realization that it doesn’t take care of itself. Somebody has to make sure that the property is maintained if it’s going to retain its value and generate some income. Unfortunately, there are some common mistakes that many owners make when it comes to managing their properties. Here’s a look at four of the most common missteps.
1. DIY Nightmares: It’s tempting to try to save money by doing repairs and maintenance yourself. It’s particularly tempting if you have some of the skills you need to make the repairs. Some of the work may be well outside your area of expertise and you may not get the results you want. In some cases you may not pass required inspections. But even if you’re highly skilled, do you have the time? Unless maintenance is your main job, when will you find the time to make the necessary repairs? And if you’re preparing a vacant property for someone to move in, bear in mind that the longer it takes you to get the property ready, the longer you’re going without income. Sometimes trying to save money actually costs you money.
2. Hiring the wrong help: Sometimes property owners try to save some money by hiring laborers at a lower rate. That doesn’t always work out so well. Skill needs to be factored in as well. And often skill, knowledge, and speed go hand in hand.
Hiring a $15-an-hour laborer who takes 10 hours to complete a job will cost you $150. But if you hire an expert for $50 an hour to do that same job and he completes it in only 2 hours, your cost is only $100. And there’s a good chance that you’re getting better quality work. That means the problem won’t have to be fixed again in the future—and that saves you more money down the road.
3. Allowing your tenants repair things themselves: Sometimes property owners try to avoid dealing with repairs and maintenance by giving tenants a break on their rent or lease if they agree to take care of repairs themselves. There are a couple of dangers in taking this approach. First of all, you may end up with repairs that are not up to code or will actually reduce the value of your property. And some repairs—if not done properly—can result in safety hazards. Beyond that, if one of your tenants is injured while performing maintenance on your property, you could be liable for their medical bills, rehabilitation, and loss of income. That’s a huge risk.
4. Skimping on inspections and maintenance: Make no mistake, staying on top of regular inspections and maintenance takes time and effort. Many a property owner has put off inspections due to the inconvenience, only to be surprised by significant damage once the tenant moves out—damage that could have been avoided had the property been inspected regularly and minor repairs done earlier. Skimping on maintenance is no bargain either. Yes, maintenance costs money, but regular maintenance (on an HVAC system, for instance) is still much cheaper than having to replace the entire system. And well-maintained properties command a higher rental rate. So what you spend up front to keep your property in good working order pays off on the back end.
It’s interesting that many of the missteps property owners make center around attempts to save money. But those hoped-for savings end up costing them more in the long run. What are your biggest concerns about hiring a property management company as opposed to maintaining the property yourself?