Lots of people need a good property manager in Cincinnati to help them handle the rental properties they invest in. These managers keep the place in good shape, take care of the people living there, and tell you if anything’s wrong.
But if you end up with a bad manager, it can be worse than not having one at all. At that point, say goodbye to passive income, you now have a job! (P.S. It’s not a fun one when you’re trying to pick up the pieces of someone else’s mess.)
What if you find out your property isn’t being taken care of, your tenants are being ignored, or things have gotten really bad because of your manager’s neglect? We’re here to explain the dangers and what you can do about it.
Bad Property Managers Cost You Money
Having a bad Cincinnati property manager can lead to financial losses in your rental portfolio, and it might even suggest that someone is stealing from you.
Here are some examples:
- Wrong Rental Rates: Charging either too little, which means less money coming in, or too much, which could scare away potential tenants.
- Poor Tenant Screening: Picking tenants who end up damaging the property or not paying rent on time.
- Ignoring Problems: Not fixing maintenance issues or other problems, which could end up costing you even more later on.
- Handling Move-Outs Poorly: Not planning for tenants leaving or not getting the property ready for new ones, causing delays and extra expenses.
- Lots of Tenants Leaving: If tenants keep moving out frequently, it can drain your finances.
- Hiring the Wrong Contractors: Spending too much money on contractors who don’t do a good job.
- Taking Money for Repairs: Stealing from the fund meant for property repairs.
With a bad property manager, what was once a profitable investment can quickly become a financial disaster due to poor decisions and mismanagement.
Bad Property Managers Can Get You Sued
One major concern is that bad management might go beyond just being ineffective and actually lead to illegal or negligent behavior, putting you at risk of legal trouble. These issues can range from simple mistakes to outright breaking the law.
Here are some examples:
- Maintenance Problems: Not maintaining the property properly for the tenants’ safety and comfort.
- Using Incorrect Documentation: Failing to correctly document things like tenant agreements, repairs, and expenses.
- Unauthorized Entry: Violating tenants’ rights by entering the property without giving proper notice as required by law.
- Mishandling Security Deposits: Taking more or all of a tenant’s security deposit without providing a detailed list of deductions and evidence.
- Fair Housing Violations: Discriminating against potential tenants based on factors like gender, ethnicity, religion, family status, or skin color.
Each of these issues could not only result in legal action against the property manager but also potentially against you as the landlord who hired them.
Overall Signs of Mismanaged Properties
How can you tell if your property manager isn’t doing a good job with your investment homes? Even if you’re busy with other stuff, these warning signs should make you think twice about who’s looking after your properties.
- Poor Communication: Your manager takes forever to respond to your messages, or when they do, it’s with short and unhelpful answers.
- Missing Reports: You don’t get regular updates on what’s happening with your properties, or when you do, there’s hardly anything in them.
- Mystery Charges: You see a bunch of charges on your bill, but they don’t explain what they’re for, or they’re charging way too much for simple fixes.
- Bad Tenants Keep Coming: Having one problem tenant might be bad luck, but if it keeps happening, it’s probably because of bad management.
- No Emergency Plan: They don’t have a plan for handling emergencies that happen after regular business hours, which is really important for good property management.
- Dodging Questions: When you ask them to do better or give you more info, they don’t take it well or brush you off.
If your property manager is showing any of these signs, it’s time to act fast to protect your property, your tenants, your money, and your reputation.
What to Do About a Bad Property Manager for Your Cincinnati Rentals
If you’ve been stuck with a lousy property manager for a while, it’s crucial to fix things fast before they cause more trouble. Bad property managers don’t magically become great ones with a snap of your fingers.
So start by getting rid of the bad manager right away. Then, you’ve got to figure out your next move.
Option 1: Replace Property Management
If your property is still in good shape, hiring a reliable property manager is a smart move. Ask for recommendations from other clients they work with and look for management teams that have a strong network to handle everything smoothly.
Picking the right property manager means checking if they can handle what you need. Ask them:
- How many properties they manage
- The kinds of clients they usually deal with
- Whether they’re a small family-run business or a big management company
- The types of properties they’re experienced with, like apartments or single-family homes
Option 2: Invest Money To Repair The Property
If your property has been damaged by bad tenants or neglectful maintenance, you might have to put money into fixing it up before it can be a successful rental again.
Depending on the severity of the repairs, this can cost thousands, tens of thousands, or hundreds of thousands to repair and get market rents. If that sounds awful, there’s another solution.
Option 3: Sell Properties That Aren’t Worth The Trouble
If you find out management let your rental property become a headache with no quick solutions because they weren’t doing their job, you can sell the house quickly to a local real estate buyer like PropertyPal to get back some of your money.
Then, you might want to use that money to buy another property that’s not damaged and hire a better property manager, or use the cash for other means.
PropertyPal Can Help You Solve This Problem
If your house or apartment is in bad shape and you need to sell it fast, PropertyPal can help. We’re experts at buying places that need fixing up, even if they’re not suitable for regular selling. We can also assist you in dealing with tenants if you want to sell a rental property. Give us a call to find out how we can help you with a quick and free offer, without any obligations.