Three Property Management Mistakes to Avoid
You don’t need to learn the hard way how these property management mistakes can quickly take a bite out of your budget. Avoid these mistakes from the beginning to reduce your costs and your headaches.
Forgetting routine inspections
Preventative maintenance is the surest way to keep building ownership costs down. Peeling paint leaves wood exposed leading to wood rot. You now need both a contractor and a painter. A minor tuckpointing repair is neglected and turns into a complete chimney rebuild costing thousands of dollars. Now that our severe Chicago winter is over, it’s the perfect time to complete a routine inspection of your entire property from the foundation to the chimney to identify potential issues.
Looking for a new contractor with every repair
While no one wants to be taken advantage of, it takes time to get estimates and in the meantime you may have a real problem with tenants. Instead of looking for a new contractor every time you need a repair, look to build a network of reliable, responsive contractors. A contractor with whom you have a relationship is always going to be your best bet when you have a repair that needs immediate attention.
Hiring non-insured or non-bonded workers
While it may be tempting to hire a laid off buddy to complete a repair at a reduced price, you are putting yourself and your association at risk by doing so. If your buddy falls off a ladder while completing the job and ends up in the hospital, you or the association could be sued for workman’s compensation benefits as his “employer.” Ask contractors to show that they have liability insurance and workman’s compensation for all employees. Bonding offers property owners additional protection. If a contractor fails to complete a job, the bond can provide compensation. These are two important reasons to hire insured and bonded contractors.
Protect your property investment. These property management mistakes are easily avoided and will save you time, money and needless hassle.