It doesn’t matter which field you are currently exploring, chances are if you are new you will succumb to some rookie mistakes. The same can be said for new and enthusiastic landlords that mean well but simply can’t help repeating the same mistakes over and over again. Expert landlords that have witnessed these mistakes from novices have provided us an ensemble of rookie mistakes that new landlords make.
We hope all you landlords take a lot at them and do your best to avoid them for your own safety, for ensured income on your investment and to increase your chances of success. For more information here: Landlords should always run a background cheek.
1. They Have Not Adjusted To Their New Business
A lot of people, starting out, consider land lording to be a past time. Land lording is not a joy ride, nor does it come easily to those who don’t adapt and learn. It is a business and as all businesses do, it needs stability and organization. People tend to lose important receipts, lose track of important notices and their funds either get mixed up or delayed.
2. Tenant Screening
For those who think it isn’t as important, they should know tenant screening has to be a priority. Any claim they make, you should look into and thoroughly go for a background check to see whether their records are clean and they are legitimate people or not. This is essential to avoid problematic situations and troubles arising from difficult tenants. This will also save the landlords a lot of time and money.
3. Accepting Excuses
The rent has been long overdue, or it has been constantly getting delayed for a few months. Perhaps the tenants, ever since they arrived, have not properly cleaned up the house and there are a few extra repairs on your account. New landlords tend to accept whatever story their tenants feed regarding late rents or their behaviors. It is important to not let such behavior slide and hold them accountable the way the bank holds you accountable for monthly returns on the loan.
4. Not getting things in writing
Nothing that is verbal can be proven, debated against or questioned later on which is why it is important to have everything in written and properly documented. This includes the monthly rent, advance payments and all matters pertaining to your deal.
5. Get Estimates for Costs
Newbie’s do not plan out business costs of operation and maintenance and end up spending more than they earn. This is why they must learn how to remain functional without letting the funds dry out.
6. Learning the Law
For every difficult tenant who refuses to pay is a rookie landlord that wastes their own money, time and ends up making the situation worse. This is because they do not the regulations that follow when a tenant steps outside their boundaries and what steps can landlords take. It is best to learn these rules beforehand.
7. Property inspections
One problem with property renting is the leniency in doing regular checkups. Your roof may be falling apart for all you know, and it is silly to depend on tenants to inform you about your own property. Do not rely on good news or silence from your tenants, and do your own checkups.
8. Renting to Friends and Families
Money is a bone of contention and involving those closest to your heart in a business that should be purely a materialistic venture is always a bad idea.