Costly and Common Landlord Mistakes
Category Advice
Taking on rental property can be a rewarding investment if done the right way, but diving into the challenge before knowing what you're getting into can result in some heavy costs.
Don't make it unnecessarily hard on yourself. Here are some common mistakes to avoid:
Rushing tenant checks
As tempting as it may be to get occupants in as soon as possible, rushing the process could result in you being stuck with a tenant who isn't a good match.
Request that candidates fill out a tenant application form, and take time to review their credit history and references.
Assuming you will always have a paying tenant
Do a thorough analysis of your financial capacity before closing on the purchase on a rental property.
There is no guarantee your property will be permanently occupied. If it stands empty for a few months and you receive no income from tenants, would you be in a position to cover the costs? If not, it's not worth risking the potential financial implications.
Not budgeting for maintenance
Don't forget to budget maintenance into your tenants' monthly rent.
In order to keep your tenants happy, you're going to have to make sure your property is always well maintained. If you haven't budgeted for that, you are either going to end up with unhappy tenants, or a financial loss out of your own pocket.
Relying on a verbal agreement
For your own legal protection, it's important to have a tangible, written agreement. Relying on a handshake is unwise, to say the least.
In the case that you come across issues with your tenant - if you don't have a binding lease agreement - you won't have any standing in court, if it ever gets that far.
If you're ready to invest in rental property, but aren't ready for the practical responsibility, we can take care of it for you!
Author: SApropety.com
