Education and news for smart DIY landlords!
Landlords, especially new landlords, make mistakes that cost them money. While mistakes are inevitable (and part of the learning process), it’s always a good thing to know them ahead and take preventive measures. In today’s article, I’m going to show you 7 obvious and not-so-obvious reasons why landlords fail.
Many landlords are too emotionally invested in their property because it used to be their home. They created a lot of childhood memories in the rental. Because of that, they find it hard to hand over the keys. They may impose too many rules -- and some of those roles are unreasonable.
Knowing how to properly construct your lease agreement protects you and your business. One mistake is overpricing or underpricing the monthly rent. Another is failing to mention the consequences of late payment or non-payment. Third is pet accommodation.
An absentee landlord is the kind of landlord who doesn’t reside in their rental property. Being an absentee landlord can be a problem because you won’t be able to see maintenance issues that are happening. Tenants can break the rules whenever they want and misuse the rental.
Some landlords stop by the rental anytime just to look around. You can enter your rental in emergency situations but in most instances, you need to give tenants proper notice. Give a 24-hour verbal or written notice. It doesn’t matter if your tenant happens to be a relative or close friend.
It’s not unusual to like some tenants of yours along the way. You find that you have common interests. You talk more, even hang out. What used to be a business relationship now becomes a personal relationship. Remember to be a landlord first, a friend second. Know your rights. Always read the lease. Be a solution-oriented business owner. Most importantly, be worthy of your tenant’s respect.
If a tenant notifies you of an issue in your rental and you failed to remedy the issue, you can be held liable. It is your responsibility as a landlord to make sure that your property is safe to live in and is fit for human occupancy. Check that the electrical lighting and heating facilities are working. Make sure that the floors and stairs are well-maintained.
A vast majority of landlords don’t know how to deal with certain tenants. They are unfamiliar with the law. They’re not sure how much to charge for rent. It’s important to educate yourself about the basics and legalities of renting out your property. Arm yourself with the right education.
Don’t allow these mistakes to stop you from being a successful landlord. These are just some of the things to be careful about in your rental property business. Learn more about landlording here at Landlord Prep. We have the tools and resources to help you in all aspects of landlording.