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The Four Types of Property Mismanagement

That Affect Small Rental Properties

The four types of property mismanagement that affect many rental properties

are:

1. Tenant mismanagement: This occurs when there are no tenant qualification

standards, screening requirements, or eviction procedures in place. Tenants

are selected strictly on a "first-come, first-served basis," and there is no

sense of urgency when it comes to evicting tenants for nonpayment of rent.

2. Financial mismanagement: This happens when units are rented at belowmarket

rental rates, there is no organized effort to collect rental payments

in arrears, and there are no formal records being maintained for income

and expenses.

3. Maintenance mismanagement: This is the result of tenant maintenance requests

being deferred or botched by hapless handymen masquerading as

professional repairmen and no preventive maintenance program in place.

4. Records mismanagement: This happens when there are no formal property,

tenant, employee, and tax records being maintained for the property.

Six Telltale Signs of a Grossly

Mismanaged Rental Property

You do not need to be a property management whiz to be able to quickly identify

a rental property that is suffering from gross mismanagement. All you need to

do is just look for the following six telltale signs of property mismanagement:

Sign 1: Property and grounds are suffering from an obvious lack of routine

maintenance and are in a neglected, run-down condition.

Sign 2: Tenant turnover and vacancy rates are abnormally high.

Sign 3: Unregistered and non-operable vehicles are conspicuously parked on

the grounds.

Sign 4: Uncollected rental payments are more than 30 days in arrears.

Sign 5: Rental units are damaged as a result of tenant negligence and

vandalism.

Sign 6: Property, tenant, income and expense, and tax records are either in

total disarray or non-existent.


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