6 Ways to Reduce the Risk of Managing Properties

In the midst of a national housing shortage, apartment buildings and other rental properties are popping up like crazy in cities across the country. This equates to a higher demand for property managers. Some property managers (or landlords) actually own the property that they manage while others are hired specifically to manage property for owners. The job entails collecting rent,  maintenance, cleaning, security, managing employees and much more. Like any job, property management has its share of risks that come with the territory. Here’s a few simple tips on how to protect yourself and your property management business from loss and/or costly lawsuits:

1) Screen Tenants

Finding and keeping quality tenants is a no brainer! It’s well worth the cost and effort to run credit/background checks on potential renters. Otherwise, your cash flow could be disrupted due to slow payers and you may even be forced to evict such tenants who get too far behind in their rent. 

2) Know The Laws

It’s important to know and comply with federal laws that prohibit discrimination such as the Fair Housing Act and Americans with Disabilities Act when renting and advertising. Purposely or inadvertently breaking these laws could result in penalties or a costly lawsuit. 

3) Inspect & Maintain

Property managers are responsible for the safety of their tenants to some extent. Stay up on property inspections and maintenance to keep your property safe. Keep a paper trail when hiring contractors for maintenance projects so you have proof that jobs were completed.

4) Physical Upgrades

There’s always going to be normal wear and tear on a property. Things get broken, driveways crack and paint starts to peel. Keep up on repairs for the safety of your tenants and to help keep your property aesthetically pleasing. Make sure all upgrades and repairs are made by qualified contractors. 

5) Stay Organized

It’s imperative to keep a paper trail on tenant history, contracts, rent payments and any incidents or claims on the property. An effective system of organizing your paperwork will save you time, money, and a major headache if you ever need documents for legal purposes. 

6) Stay Informed

As a property manager, you’ll inevitably be affected by the economic climate or a national calamity at some point. Most recently, landlords have had to contend with the “eviction moratorium” brought on by the pandemic. Learn your rights so that you are not taken advantage of during a crisis. 

Property management can be a liability-prone business. Protect your property management business with a General Liability Insurance Policy. Visit RealShieldInsurance.com to get a no obligation business insurance quote.