Mistakes that landlords are still making in 2023…
Unfortunately, I still see these mistakes being made by “real estate professionals” and self-managing landlords.
1. Fair Housing Violations: Believe it or not this is still happening more than you think. The proper way to screen potential tenants is to have a set of criteria based on credit, income, rental history, employment history, and accept the first person that meets those criteria. Do it the same for everyone, every time.
2. Over Reliance on Credit Score: Credit score is important but confirming their income is crucial. Is the offer letter legit? Did they just get fired?
3. Raise Rents: You read that right. Almost every self-managing landlord that hires us has below market rents sometimes 1000s of dollars under market. If for some reason you are not raising rents to fair market value, then you need to either toughen up or hire someone to do it for you.
4. Repairs: It’s just a rental… right? Wrong, maintaining your rental property is essential for keeping tenants happy and ensuring the safety of your property. From regular inspections to fixing faulty appliances, it’s important to stay on top of maintenance. Hence the importance of #3.
5. Not acting on Delinquency: If you are being “nice” and not actively collecting on debt you may find yourself stuck with the bill. Keep up with delinquency and constantly review legal options.
6. Not trusting your property manager: They have no interest in making mistakes or costing you money. I promise.
7. Refusing to hire a property manager: Or cheaping out when hiring one. Do you research and save yourself the headache.
These mistakes are easily avoidable. Treat your rental property like a small business.