Being a landlord is hard work. Not only do you have to deal with your tenants’ complaints, but you also have to make sure that every decision you make is finely balanced between customer service and making profits from your business. Here are a number of things that can be called beginner or inexperienced landlord mistakes and you should avoid them.
- Tenant screening: Tenant screening is one of the most important things that you will have to do as a landlord. You may either have a set of inclusion criteria that are too stringent and not give out your home at all or not screen enough and end up with problem tenants.
- Taking it as a hobby: There are a number of well off individuals who invest blindly in rental properties and purchase a number of them every year or so. While it may seem like a good investment, it can be one of the worst landlord mistakes. If you are not interested in running the business, you can hire a property management firm to do it for you.
- Inadequate insurance: As far as landlord mistakes go, this is probably the biggest risk. If there are no damages or accidents that year, then good for you, but that is a very foolhardy thing to do. Being under insured can have its legal repercussions as well.
- Shaking on it: It is good to have a trusting relationship with your tenants, it does not mean you can just rely on a promise made verbally. Your tenants may just forget or even deny the agreements that you have reached at the time. So put everything down in writing and get the papers signed.
The above mentioned landlord mistakes are not the only ones made by first timers, but perhaps the most damaging to the business.