So you decided to be a landlord? While letting your property to tenants is a good way to earn passive income, it also has its drawbacks. For one, it can be hard to make sure your tenants will respect your rules. Also, you will need to keep up with your responsibilities as a landlord to keep the tenants happy and your property in good shape.
It can be quite easy to make mistakes, especially when you are still a new landlord. While slip-ups can be your best teacher, it can cost you serious consequences if you don’t try hard to learn from the mistakes of others. The good news is, most property management blunders are easy to avoid, but only if you are willing to learn about them.
Make the most out of your new venture by keeping yourself from committing the following mistakes.
Failure to regularly maintain the property
It does not matter if what you are leasing is a house or an apartment. It is your responsibility as the landlord to ensure the regular maintenance of the property. This way, you can retain its look while maintaining its value. Doing so will also ensure the property is safe for the tenants and is compliant with state and housing codes.
Make sure to address maintenance issues on time. Every time a tenant leaves, repair existing damages and replace items as needed. Deal with any health and safety issues, and don’t forget to prep the property for the next tenant. Have the unit thoroughly cleaned and remove any unnecessary clutter. Hiring a junk removal service for your rental property in Ocala or Provo can make your clearing job less stressful and time-efficient.
Skipping tenant screening
Some landlords believe that as long as their units are occupied, then the business will thrive. In reality, you are better off with an unoccupied unit or two than having to deal with an eviction. So, before you accept future tenants, never skip tenant screening.
Tenant screening should always start with a rental application. This will give you an idea of your applicant’s personal, employment, and financial history. A credit check is a great way to assess your tenant’s financial capability. If your budget permits, an online background check is also recommended. Last but not least, make it a point to interview your tenant and ask about their lifestyle, so you know they are a good fit for your property.
Not buying the right insurance
One huge mistake you can easily dodge as a landlord is buying the wrong insurance. If you choose to cheap out on your insurance, you can end up with a premium that is insufficient for your needs. You may even end up having the wrong insurance type, and you won’t be covered in case you needed to make a claim. For starters, every landlord needs landlord insurance.
These are three of the most common landlord mistakes that are quite easy to avoid. By knowing what things can lead to costly consequences, you will find it easier to avoid them. Avoiding these things will also help you make the most out of your investment and mitigate risks when putting your property up for lease.
