If you are a landlord, it’s important to treat your property like a small business. That means keeping your tenants happy and constantly learning from your mistakes. As time goes on, you will learn a lot about what types of things you want to avoid and what actions help you succeed as a landlord. Many of the most common mistakes that landlords make are completely avoidable, which is great news for people who aren’t very experienced. Below, we are going to walk you through some of the most common landlord mistakes to avoid. If you are a landlord looking for legal advice, reach out to Derryberry & Associate today for an initial consultation.
1. Not Screening Tenants Properly
As a landlord, it’s your responsibility to make sure you are leasing to tenants that will respect the rules. If you don’t screen your tenants properly, you will end up with a lot more problem tenants. Dealing with tenants that can’t pay their rent, damage the property, or cause other issues is normally avoidable if you implement a proper tenant screening process. Credit history checks and basic questionnaires are a good place to start. Try to avoid ever having to evict a tenant by putting the time and energy into screening your tenants.
2. Avoiding Maintenance Issues
Another common mistake that landlords often make is letting maintenance issues go unnoticed for too long. It’s easy to get complacent and put off maintenance issues until later. The thing to remember is that small issues can become big issues quickly. You might end up paying dearly for not handling maintenance tasks like fixing roof leaks. It’s always in your best interest as a landlord to take maintenance issues seriously and make sure they are fixed sooner rather than later. Don’t make the mistake of putting off your maintenance issues and risking more costly problems later.
3. Ignoring Insurance
This mistake can be quite a costly one and is very easy to avoid. However, there are plenty of landlords out there that don’t take their insurance seriously and end up paying for it. It’s very important that you have the right types of insurance on your property so that you aren’t putting yourself at risk. Property insurance and liability insurance are both essential for every landlord. Spend some time doing your research and make sure that you are getting the proper amount of coverage too. Avoiding this common landlord mistake can end up saving you thousands in the long run.
4. Letting Emotions Get the Best of You
Sometimes, things can get heated between a landlord and a tenant. One of the worst mistakes you can make as a landlord is to let your emotions get the best of you. Always treat your tenants with dignity and respect and make sure you keep a level head at all times. Controlling your emotions is crucial if you want to make money as a landlord.
We hope this article helps you avoid making any costly mistakes as a landlord. Remember to reach out to Derryberry & Associates LLP if you have any legal questions about being a landlord.