Last Years Mistakes and New Improvements for Better Operations
Today, I'm diving into some of the mistakes we made last year, and what we're doing to fix them for 2024. It's easy to talk about the wins, but the real lessons come from the screw-ups. So, let's get real about the blunders and how we're turning things around.
Owning Up to Our Mistakes
A Tenant Disaster: The Cost of Poor Screening
Imagine placing a tenant in a property who didn't meet the qualifications. Sound insane? Well, that's exactly what happened. This tenant had a sketchy identity and employment situation. They looked good on paper, paid their first month's rent and security deposit, and even made a couple more payments. But then, they reversed all the payments, claiming fraud. Overnight, we lost around $9,000 in rent.
We had to file an eviction, and the process dragged on for months. What did we do? We cut a check to the owner for all the lost rent and expenses, totaling around $12,000. We owned our mistake and made it right, regardless of whether the owner decided to stay with us or not. Thankfully, they did.
What We're Doing Differently
Quality Assurance: We’ve beefed up our QA and QC processes.
In-House Leasing: We brought leasing in-house to ensure stricter control over tenant placements.
Water Woes: The Nightmare of Burst Pipes
Leaving the water on at a property can be a big deal, especially in Texas. In freezing temperatures, pipes can burst if not properly managed. We had an outside agent who didn't follow our process to shut off the water. The result? Burst pipes and a $2,500 repair bill.
Our Fix
In-House Control: We no longer rely on outside agents for basic tasks. Our in-house team now handles everything, ensuring better control and accountability.
Vendor Hell: When Outsourcing Goes Wrong
We hired a vendor who claimed to be a big shot but turned out to be utterly incompetent. By the time we realized it, the damage was done. Plumbing and tile work was botched, leading to expensive repairs. We stroked a check to the owner and are now suing the vendor to recover the costs.
New Protocols
Vendor Oversight: We’ve implemented a 30, 60, 90-day oversight for new vendors to catch issues early.
The Agent Debacle: When Owners’ Agents Get Involved
Allowing owners’ agents to lease properties created chaos. These agents would list properties and expect us to handle the rest, leading to miscommunication and quality control issues. We had to deal with tenants screened by agents using dubious methods, resulting in more headaches for us.
Our Solution
Exclusive Control: Once a property is handed to us, we control everything until it’s sold or management is terminated. This ensures consistency and quality.
Key Takeaways for 2024
Improved Processes and Control
We've learned the hard way that controlling the process internally is crucial. From tenant screening to vendor management, having our own team handle these tasks ensures better accountability and quality.
Open Communication and Transparency
Mistakes happen. What matters is how you handle them. We've built trust with our owners by being transparent and taking responsibility. This approach has kept almost all our clients, despite the issues.
Continuous Improvement
We're not perfect, but we're committed to learning and improving. Whether it's new QA processes or stricter vendor oversight, we're always looking for ways to do better.
Your Turn
If you're dealing with property management issues, take a look at your current processes. Are your vendors, agents, and partners owning up to their mistakes? If not, it might be time for a change. And if you’re curious about how we handle things, feel free to reach out. We're always here to help.
Until next time, stay sharp and keep learning from those mistakes!
