9 Mistakes Landlords Make… And What To Do Instead

A lot goes into managing a rental. A property needs good marketing, upkeep, and, of course, a tenant who takes care of the property and pays rent on time. Here are 9 things landlords often overlook when renting – and how you can avoid these mistakes to protect your investment. 

 

 

 

 

Here’s what NOT to do:

1. Not Collecting a Security Deposit — A security deposit protects you and the tenant! An upfront security deposit – usually one month’s rent – can assure you are covered if the tenant misses rent or damages the property. No security deposit might mean these costs come out of your pocket…or worse, have to be settled in court. A security deposit also encourages the tenant to care for the home.
2. Not Screening Tenants — Don’t make the mistake of renting to the first applicant who is interested in your property. Always conduct a thorough background check (including credit & criminal screening and rental history) before approving a tenant. This helps lower the chances of having a problematic tenant. 
3. Not Setting the Right Rent Price — We’ve seen landlords base rental price on how much they need to pay their expenses, but unfortunately, that’s not how the market works. Look at rental listings near your property and set your rent price so it will be competitive. Sometimes you have to lower your listing value if it means getting your property rented! Consider how much more it costs you to lose one more month’s rent compared to the cost of lowering the rent $100/mo. 
4. Not Using a Written Lease — You need, in writing, exactly what is expected from both parties. Who takes care of the yard and appliances? How does trash service work? Are pets allowed – and on what conditions? If there is any confusion about what the rules and expectations are for the property, you can consult the lease, where everything is laid out.
5. Not Communicating with Tenants — The landlord-tenant relationship extends beyond paying for a place to live. Keep an open line of communication so you can fix any issues that arise at the property and respond promptly. Have a plan in case of emergency. Make sure you are well-versed in local landlord-tenant laws that provide tenant rights.
6. Not Doing Regular Inspections — Neglecting wellness checks of the property can leave you in the dark about how the tenants are taking care of the property and how the home is running. It’s important to be sure the tenant is changing HVAC filters regularly and not missing water leaks under sinks and more. Proactive maintenance is more affordable than emergency repairs. 
7. Not Keeping Financial Records — Keep track of all your receipts and invoices. This is critical for budgeting, tax preparation, and evaluating your overall return on investment.
8. Not Anticipating Maintenance Costs — Repairs and replacements are going to be needed for ever rental property eventually. You must have emergency funds set aside so you are prepared.
9. Not Hiring Professionals — While it may seem cheaper to try to fix a problem yourself, consulting a professional is important with complicated maintenance issues such as leaks & plumbing issues, electrical work, and HVAC. It’s helpful to have experts you know who are trained in these specialties and are ready to come when you call. Buy back your time with professional services, so you know your property is being efficiently cared for. A property management service is an excellent tool to make sure your property has comprehensive and professional care.

If you’d like to know more about property management in Murfreesboro, Smyrna, LaVergne and surrounding areas, give Real Property Management Rental Solutions a call at 615-900-4067 or contact us here. We’d love to give you a free estimate for managing your home!

 

This content is provided for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. Readers should consult with licensed professionals regarding their specific circumstances.

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.