Common Mistakes Landlords Make

Common mistake landlords make

 

It sounds so easy to be a landlord right? You just buy a house or a property, and then rent it out and earn money from it every month. But guess what? Being a landlord isn’t an easy job and it is equally tough as all the other professions and businesses out there. With just a few mistakes, a landlord can end up losing so much money that he can never even imagine. So the wiser thing to do is to learn a bit about renting out properties first and then make any move.

Here are some of the most common mistakes landlords usually make:

1) Not checking the potential tenants

What landlords usually do is that they end up renting their houses to tenants who are in desperate need and are ready to make a quick deposit. Now, this is a one big mistake because as a landlord you shouldn’t rush things no matter what. Take it slow and first verify the tenant properly, ask for references, ask for a credit report and check everything you can. 

2) The property will always be on rent

Landlords think that their properties will always be on rent which is a one big misconception. As a landlord, you are supposed to do a cash flow analysis and you need to make sure that you have enough funds at the back to pay the mortgage if there are no tenants for your house.

3) Not signing a lease agreement

You cannot rely on promises because this is a proper business and you are supposed to make it look professional. So, always sign a lease agreement and make sure that your tenant understands and agrees with the terms and conditions of residing in your house.

These are some of the most common mistakes landlords make. So, make sure to avoid these mistakes and get as professional you can in your dealings.

Our property managers are responsible for whole bunch of responsibilities, as per above diagram from marketing to ongoing service. So, that you can relax and enjoy the return on your investment.