Managing a rental property requires enough experience and the right expertise. While seasoned landlords may effectively manage their rental properties by themselves, those who are new to the business may fall short of experience and commit huge mistakes. If you’re a DIY landlord, you should be aware of the common landlord mistakes and take the necessary steps to avoid making them.
Read on to learn six mistakes DIY landlords can commit while managing St. Louis rental properties.
1. Not Conducting A Thorough Screening Process
A comprehensive tenant screening saves a lot of trouble down the road. Even if you want to fill vacancies immediately, you must never skip the screening process. It can protect your property by allowing you to know whether the applicant fits your rental expectations or not.
Make sure you check basic things like credit score, employment, identity, criminal history, evictions, and background of applicants before hiring them. Also, contact their previous landlords to know more about their behavior and character.
2. Not Responding Promptly To Tenant Maintenance Requests
Delaying property maintenance is another mistake you need to avoid at all costs. Not only will it put your tenants at risk, but it will also reduce the value of your property over time. Pay close attention to the interior and exterior structure of your property and promptly respond to the repair requests. Check HVAC systems, air filters, smoke detectors, appliances, and the plumbing and drainage system to avoid clogging and blocking problems.
3. Leaving Loopholes In The Lease Agreement
As a landlord, you need to enforce the terms and clauses in the lease agreement as and when required. For instance, if your tenants are sneaking pets on the property, you must enforce the penalty as defined in your pet policy.
Therefore, it is necessary to draft a comprehensive lease agreement including all clauses, addenda, and tenants’ obligations to keep the unnecessary hassles away. First, however, make sure you check all the residential laws in your state while creating a lease agreement.
4. Not Taking Strong And Immediate Action In Case Of Evictions Or Legal Issues
Having built a great relationship with your tenants might stop you from making tough decisions even if tenants violate the lease agreement. However, that’s one of the most serious landlord mistakes to avoid as it can become a serious issue later.
No matter how strong your relationship is, you must perceive things professionally and remind tenants about their responsibilities and obligations. Ensure they follow all the rules related to maintenance rent payments and take care of your rental property accordingly. If they violate a lease, do not hesitate to take a firm legal step like eviction. Hire an attorney for legal advice if you do not know how to tackle the situation.
5. Not Staying Updated With The St. Louis Rental Market
This is yet another common landlord mistake that can invite significant losses. Staying up-to-date with the latest updates in the rental market gives you a clear picture of the rental value of your property and the tenants’ expectations. On the contrary, if you stay aloof from the housing market trends, you would lose out on profitable renting opportunities.
So, make sure you read and watch the latest news related to the rental market, the effect of the current economy on the real estate industry, and the changing market trends. It’ll help you calculate overhead costs, set an appropriate rent price, and enable you to achieve considerable growth in your business.
6. Not Choosing The Proper Rental Insurance Policy
Often landlords are satisfied with the homeowner’s insurance and do not consider getting landlord insurance while renting a St. Louis property. If you are one of them, we recommend you understand the benefits of having a good rental insurance policy. It protects you against liabilities, the cost of severe property damage, and legal complaints filed by tenants. It also covers you against unexpected situations like tenants’ injuries or theft.
Renting a property is not an easy thing. It requires consistent effort, attention, knowledge, and patience. Even a minor mistake can cause significant loss in the future and damage your reputation as a landlord. We would, therefore, recommend hiring a professional property manager.
Consider talking to us at Amoso Properties. We are a full-service property management company in St. Louis that offers all rental property management services in the area. We can help you handle your business and boost your efficiency for long-term success.
