7 Property Management Mistakes That Can Hurt Your Business

Managing your commercial property is hard work. Outstanding property management isn’t just about collecting rent on time; It’s about maintaining and increasing the property’s value while keeping the tenants happy. 

This is why when you manage any kind of property, you should avoid committing these mistakes.

1. Ignoring Safety Hazards

When an accident occurs on your property, you can be held liable for it. According to the premises liability law, also known as occupiers’ liability, a lawsuit can happen when a property owner or manager knowingly neglects hazards that may cause injury to a person using their space. 

Therefore, common property management should always look out for common hazards such as poor common area lighting, wet floors, exposed wiring, and missing or loose handrails.

2. Lack of Tenant Screening

Before a contract is signed, tenant screening is a must. Screening tenants ensures that you, your property, and the other people using your commercial property are safe.

Aside from this, screening tenants reduces the possibility of issues down the line, such as late payments and forced evictions. Lastly, screening your tenants can safeguard your property from bad tenants who can leave your property in abysmal conditions.  

3. No Regular Maintenance

Unless your contract with your tenant specifically indicates that they are responsible for the maintenance of their space, you should address any issues that may arise in your property. Property maintenance on common areas is essential even if you are not responsible for your tenant’s space. 

Regular maintenance will not only keep your tenants happy, but it can also increase your property value, improve your reputation, and avoid accidents from happening.

4. Improper Unit Preparation

If you fail to prepare vacant units for new tenants, you won’t attract good ones. Make sure your properties are immaculate, especially the windows. Remember to repair damaged walls, address faucet leaks, and patch any holes. 

When you encourage tenants to accept an unkempt space, it will remain that way. Also, scrubbed carpets and floors and clean walls and windows all encourage tenants to stay longer.

5. Poor Customer Service

Rental space is a lucrative business, but poor management can lead to unnecessary costs. Property owners and managers should be aware of the ramifications of ignoring tenant complaints. 

Not paying attention to issues that tenants bring to you can lead to costly repairs or a loss of respect from your residents. In turn, it can cause a high turnover and potential vacancy rates.

6. Allowing Insurance to Lapse

Insurance can be costly, but they are essential. Commercial property insurance policies ensure that you can recover in case of fires, burst pipes, storms, and other unforeseen circumstances that can halt your operations. 

You can also take out rent guarantee insurance policies to ensure that you get paid even when the tenant doesn’t. Failing to pay your insurance premiums or not getting any form of insurance is risky at best. 

7. Imprecise Accounting

Proper accounting is important so you can see how your establishment, as a business, is doing. This allows you to get the big picture to help create a budget and decide on your firm’s direction. 

Imprecise accounting practices can be detrimental to your business. You will potentially lose money, and it can lead to poor property services and unhappy tenants.

Conclusion

Commercial property management mistakes are costly in every sense of the word. They can risk your good relationship with your tenants and cost you thousands of dollars in losses. Hiring a competent, reliable, and trustworthy property manager is vital to avoid these mistakes.

If you are looking for one of the best commercial property management companies in Jacksonville, FL, Quest Real Estate is at your service. For years, we have been helping property owners manage their properties, build better relationships with their tenants, and grow their businesses. Contact us for a free quote today!