10 Mistakes First-time Landlords Make and How

to Avoid Them

Let’s get startedThey say practice makes perfect, and this rule is exceptionally accurate for property management industry. Experienced landlords know all the hidden pitfalls, which helps them virtuously avoid typical mistakes.

Fortunately, you’ve got a chance to learn from other people’s mistakes.

1. Asking the wrong questions during the interviewKeep legal regulations in mind. If you ask your future tenants about their race, religion, gender, and some other distinctions, you put yourself at risk. As stated in the Fair Housing Act, declining renters’ applications based on those matters can be considered discrimination.

2. Seeking advice from family or friends Property management industry is rather specific; that’s why your friends and family are not likely to give you some sage advice. Of course, unless they happen to work in this sphere. If you happen to be in doubt, refer to experienced landlords or professional communities for an expert commentary.

3. Not running credit reports & background checksSelecting people based on your personal preferences can be fun, but it can also get you into serious trouble. The best approach is to conduct a thorough tenant screening to make sure that your prospects are going to pay rent on time and keep your property clean.

4. Relying on verbal agreementsIf it’s not in writing, it did not happen. Inexperienced landlords sometimes go for verbal agreements without thinking about all possible consequences. However, it might result in problems with monthly payments, security deposits, just to name a few. To avoid difficulties, make sure to sign either a paperback or a digital rental agreement.

5. Not solving maintenance issuesMany first-time landlords don’t know that they are legally obliged to deal with maintenance requests within a certain timeframe. Apart from having an ethical responsibility to provide your tenants with livable conditions, you should also adhere to safety standards established by your local building codes.

6. Charging too much rentAlthough there is nothing wrong with having a desire to make more money, it is crucial to stay reasonable. If you decide to increase your rent dramatically, get ready to increased vacancy rates. The best thing you can do is conduct a market research and determine the fair market price for your property. If you decide to increase rent, do it wisely.

7. Violating tenants rights to privacyThere are plenty of landlords who do not know the rule of a prior notice. Legal regulations vary from state to state, but at an average, you should notify tenants about your visit at least 24 - 48 hours before an actual visit. Severe cases of emergency, of course, do not count.

8. Ignoring your tenantsA happy medium is what you should strive for. While it is not right to go heavy on calling or texting your tenants, it is also highly inadvisable to completely ignore them. As a smart landlord, you should contact your renters from time to time to make sure everything’s alright, and they don’t need your assistance.

9. Not meeting the standardsThere are state laws on safety and health all landlords should know about. If you don’t want your tenants to complain about the violation of safe housing conditions, take time to make sure that walls are not cracked, heating functions correctly, and pipes are not leaking.

10. Building personal relations with clientsFamiliarity breeds contempt. Close and friendly relationships are great, but they can become a serious threat to your business. While there is not a big deal to send a payment reminder to your renter, things get slightly complicated when you need do the same to your friend.

If you are reading this, you know much more than an average landlord. Keep all the recommendations in mind, and you’ll sure succeed in a property management.

Congratulations!

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