First-Time Landlords: 7 Common Mistakes to Avoid
Being a landlord can have many benefits, like a steady income and use of unused space, it isn't always easy.
So to help you avoid really struggling as a landlord, here are 7 common mistakes you should try to avoid.
1. Not Knowing Your Responsibilities
You need to check in on the property, keep in contact with tenants, and respond to maintenance requests or other concerns on time.
2. Inefficiently Managing Your Time
If you're renting out multiple areas, or even just one, you must manage your time properly. Being a landlord can often become a full-time job, which can be hard to balance with other jobs.
3. Know Your Rights as a Landlord
You may think that you can enter it at any time or without permission because you own the property. This is not the case. Each state has a landlord-tenant law that must be followed. You'll want to become familiar with at least the basics of the landlord-tenant law as you can be sure some professional tenants know it inside and out.
4. Have Your Paperwork Ready
There are documents you'll use daily, weekly, or monthly to manage your property. Have a template of these documents available on your computer so you can easily access them when you need them.
5. Screen Your Tenants
You want to screen your tenants, verify they are employed, and the income covers rent but isn't more than 30% of their gross monthly income.
6. Charging Too Much For Rent
If you're charging way over the reasonable rate, then you may not get any tenant applications. So before you post rent rates, use a rent estimator tool to look up rent statistics and do some research on property reports.
7. Know When to Hire a Professional
If you find you don't have the time or the patience, turning management over to a professional can be the best way to run your rental.
Being a landlord can seem overwhelming. But if manage your time, and keep up with your responsibilities, you can be a great landlord in no time.