Being a landlord or managing properties especially if you are a rookie is not an easy job. It requires a lot of patience and diligence. It needs knowledge as well as experience to be successful.
Today, we are going to see what are the top mistakes of new landlords for us to learn on avoiding them. As well as the do’s and don’ts of being a landlord.
These common biggest mistakes of first-time landlords can still be appropriately addressed to avoid further damages.
Improper Screening of Tenants
One of the most common mistakes that you could make is rushing down accepting tenants. This can result in an improper and inadequate screening process.
Though your goal is to place tenants to start collecting rent income and deposits immediately, this may end up costing you more.
Carefully look into your potential tenant’s personal information. Do a background check on the history of evictions and criminal offenses. See to it your new tenant can pay his monthly payable rental.
Underestimation of Costs
New landlords often underestimate costs like maintenance and repairs. For tenants to be interested in renting, you need some repairs.
Carefully plan what needs repairs and lay out a budget so that you won’t run out of cash.
Set aside money in your bank accounts so that you can still afford emergency repairs. You have the obligations to your tenants and do it well to keep them.
Failure to Follow the Law
There are governing laws for landlords. You must meet the health and safety standards, the tenant’s right to security and privacy and the long list goes on.
If you cannot meet the legal requirements, your tenants may break the lease agreement. They can even file a lawsuit and be entitled to compensation.
Absence of Lease Agreement
Some first-time landlords just rely on verbal agreements. A common understanding between you and the tenant should be put into writing. This includes everything about your rental property and its lease agreement.
Overpricing of Rent
If you’ve made some significant renovations or improvements, do not overdo your rent. You may increase the rent but not too much than expected.
Learn how to read the market spot trends in rent. Reasonable rent is a win-win situation for you and your tenants.
Delayed Start of the Eviction Process
If you have people who are paying late, you may stipulate in your agreement to collect fines for late fees. If this becomes a recurring problem, start the eviction process.
Keeping your tenants warm at your expense can be one of the mistakes since this is business and not charity.
Failure to Hire a Property Manager
Delegate the management work to an expert property manager, like the Pyramis Company, especially if you are new in the business. Though this can cost you money, this can save you more. Property managers are not costly.
Get Some Help
Are you planning to buy real estate properties? Do you look forward to landlording some tenants? You try to make a checklist for the first-time landlord.
However, we want to make your job the easiest. Don’t commit the top mistakes of new landlords and contact the Pyramis company.
Pyramis is a professional property management company in San Antonio. Investors may hire property managers for them to focus on their property investment deals.