Today we’re talking about common mistakes that landlords make, especially when they’re managing their own rental properties. These are the five things we see happen most often, and you want to be careful to avoid them.
Not Screening Tenants
The biggest mistake that’s made is not screening tenants properly. A lot of people will make a decision based on whether they like a tenant and how they feel. You can get surprised. Screening thoroughly is important, and you need to have a procedure in place so all tenants are screened the same.
No Rent Collection System
Collecting rent on a consistent basis every month is very important to your financial health as a landlord. When a tenant is late, you need to have a plan in place so you can follow it and get that rent paid. If you don’t manage a lot of properties, you might be tempted to let rent slide and then your tenants will be late every month, and it gets harder to collect rent on time. Train your tenants to pay on time and be consistent with your collection practices.
Becoming Friends
You want to treat your tenants well and maintain a respectful relationship, but it’s a big mistake to become friends. Once that tenant is late on rent, it becomes difficult and you don’t want to hurt your friend’s feelings. Keep some distance between yourself and your tenant and don’t develop a friendship.
Long Vacancy
Often, landlords take too long to get their property rented. This is a problem because a landlord’s biggest expense is a vacancy. You need to be ready to go, with your contractors lined up as soon as a tenant moves out so you don’t lose out on rent before a new tenant moves in.
Professional Help
Finally, landlords are often reluctant to get professional help when they need it. No one knows everything. If you have an eviction or something you don’t know how to handle, call a professional property manager who can help you get through the situation and manage the problem.
Click here for our Comprehensive Guide to Property Management.