Education and news for smart DIY landlords!
Owning property is big work and running it for profit is a larger responsibility. While not all things seem to go your way because mistakes happen all the time, there are some issues you need to consider ahead of time to avoid them.
So, here are 8 mistakes that landlords make and ways to avoid them:
Tenants usually look for places that are easily accessible for buying goods and closer to their workplace or school. However, some landlords own properties that are not easily accessible to public transportation or even the local market.
If you face the same situation, you might struggle with finding a larger pool of tenants. The best way to avoid this is to choose a location that is close to public transport stops, commercial districts, school, and business areas.
No business minded person would do business just to lose profit and one of the ways that lead to this is not doing the calculations right or not estimating the costs of future repairs and renovations. It is important to consider these factors as they are crucial in avoiding unnecessary spending. They help you put a right price and keep you in the light on where the money went.
Read More: How to Find a Reliable Contractor for Your Rental Property
Easy money is tempting and there’s a lot of risks involved, that includes bad decisions leading to future problems. One of the problems landlords face is housing tenants that have bad records or shady characters. These people cause problems sooner or later not to the landlord and neighbors but to the law as well.
It wouldn’t hurt to do a thorough background check before accepting tenants. A large sum of advance payment sounds nice but maybe the problems they would cause cost you more in the long run.
There are laws regarding the use of the tenant’s security deposits as a landlord. That includes taking the security deposit ONLY for move-out damages and NOT for the delayed monthly rent. Most tenants choose this as payment for delayed rent, but it is important to document their statement and not have them used against you during legal disputes.
In the world of business, paperwork is everything, you cannot rely on words alone. Keeping records of rental agreements to receipts for expenditures is very important to the business as it keeps everything in check and keeps the business easy to manage and going.
Choosing your tenants based on personal preferences is illegal and degrading. Denial of service because of factors such as race, sex, age, marital status, family status, religion, nationality, ethnicity, sexual preference, gender identity, and disability could get you in trouble with the law.
If a tenant does not cause trouble, has a clean record and complies with the law along with your rental agreements, there is no reason for you to deny your service. Who wouldn’t want a costumer that you can easily get along with?
Business is business, nothing personal. While being too strict could be bad, so does being too loose. Letting a tenant have much of their way especially not paying on time is detrimental to the progress of your business. Landlord-Tenant relationships should be kept at a professional level and rules have to be observed and followed.
Read More: Communication: The Key to a Healthy Landlord-Tenant Relationship
Nothing is much worse than a landlord who is only after money and does not deliver services according to the price they ask. Ignoring requests such as repairs or complaints does not only ruin your business, but it also is punishable by law which is spelling for headache after headache.
All landlords want tenants who pay on time, obedient to the rules, and are law abiding. Tenants also want landlords who can provide a service that makes their rent money worth spending on. Since as a businessman it is important to gain profit, the best way to achieve this is to deliver services with professionalism, keep your tenants satisfied and happy.
Want to be a successful landlord?
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