Managing your own rental property can be somewhat of a challenge especially if you don’t know what mistakes are common and how to avoid them. But by avoiding these mistakes you will not only save yourself money, but you will also save yourself a whole lot of headaches.

While managing your own rental property is not something for the meek, here are some common mistakes that should be avoided at all costs:

-Not screening potential tenants: It is of utmost importance that you carefully screen each prospective tenant who wishes to rent your property. You should have each interested party fill out an application that includes things such as rental history, financial stability, credit, and even criminal background. The last thing you want to do is to take someone at their word that they are going to be a great tenant and then find out later that they don’t have two nickels to rub together. Nothing will make you feel more foolish than knowing there was something you could have done to prevent a bad tenant from occupying your property. The key to enjoying the rental property business lies in good tenants and if you don’t screen properly you may miss out and rent to some less than desirables.

-Not signing a lease: You never want to take anything for granted when it comes to renting your property. If you don’t make the tenants sign a lease you will have a harder time getting them out should they default on the agreement. Whether you are renting month to month or a year at a time, make sure you get it in writing.

-Not giving Title X information: This one can cost you big, $10,000 in fact. According to the law, every tenant, new or renewing, must receive a pamphlet from you on the Lead Based Paint Disclosure Law if your house was built before 1978.

-Not having the property ready: Make sure that everything that needs to be done to your property such as painting or repairs are done before a new tenant moves in. Failure to do so will result in endless phone calls from the tenant and added headaches for you. Unless you have a written agreement with the tenant prior to them moving in, then it is imperative that all the work be completed before occupancy begins.

-Not maintaining the property: Another common mistake is not properly maintaining your property. It is easy to ignore little problems as they begin, but after enough time those little problems become big problems and cost big bucks to fix. It is better to find a company to perform routine maintenance such as clean the gutters and maintain the air conditioning unit so that problems arise on a less frequent basis. The cost of a maintenance program is nothing compared to a major problem that can arise if things are not taken care of from the get go.

While many rental property owners hire a company to manage their rental properties for them, it can be done yourself. Again, managing your own rental problem is a very challenging and difficult thing to do, but avoiding common mistakes can make your endeavor a bit easier.

Compare property management companies by reading independent property management reviews given by landlords and tenants.

If you own rental property and you do not live close to it or simply don’t want to deal with being a ‘landlord’ you may want to consider hiring a property management company. A property management company can help you with every aspect of managing your property and ensure that your potential tenants and renters are put through the proper application process, pay their rent on time, and have someone to call to take care of matters that arise in a timely fashion. Because there is so much that a property management company can do to save you time and thus money there are of course going to be fees involved with hiring a property management company.

Property management fees can vary greatly from company to company but here are some of the fees you can come to expect when dealing with property management companies:

-Percentage fee: Most property management companies will charge you a percentage of the rent that you charge the tenants. While there is no set percentage in the industry, the standard is usually ten percent. Of course you will find some that will charge higher and some that will charge lower. Just be sure that you are getting all the services you desire for your percentage.

-Leasing commission: Many times you will see this type of fee from a property management company. This is usually as one-time fee and equates to one half of the first month’s rent. Again, this is not a standard and some companies charge more and some don’t even charge it at all.

-Bookkeeping set up fee: This is usually another one-time fee and typically depends on the size of the property. If you have a smaller property the fees are generally set by the company, but if you have a large property with several units, such as an office building or apartment complex, this fee can sometimes be negotiated.

-Advertisement fees: This fee is an actual charge, meaning that the property management company should only charge you what it actually costs for advertisement whether it is done in the newspaper or online. Stay away from companies that attempt to make a profit on this charge.

-Material fees: If something needs to be fixed on your property and you give the go ahead to do so, you will also foot the bill. Again, these fees should be exact and there should not be a mark-up associated with them.

While fees are indeed important when considering which property management company to go with, they should not totally dictate your decision. Be sure to get in writing what it is that the responsibilities of the property management company will be. If you pay a lower price but you get sub-par service, what is the point?

While incurring any fee is never a welcomed activity, when it comes to having your property managed these fees are a necessary evil especially if you live away from your rental property. But the time you will save when paying these property management fees often makes up for the money you spend and then some.

Compare property management companies by reading independent property management reviews given by landlords and tenants.