The growth of the rental market in the past has been tremendous. The demand for renting properties has risen especially since the preferences of Millenials for renting rather than owning is becoming a norm now. Most landlords, after buying a property, think that they have it all covered. But being a landlord in today’s world is more than just owning a property. It requires a serious passion for investing and taking up legal and financial responsibilities around the property. Managing such investments for the long term is dependent on your mindset and risk-taking abilities.
Remember, whether you are looking for a tenant or ways to manage your property, expert guidance can go a long way in the journey. Research the availability of a property letting guide in your area and how they match your needs before leaping. Especially inexperienced landlords may lose money they have invested over petty mistakes. This article is aimed at listing out 5 mistakes landlords make and how to prevent them.
5 Mistakes rookie landlords make and how to avoid them
Have your tenancy policy set
As a landlord, you must have your regulations to rent the property set before seeking a tenant. The guidelines must be clear enough for the tenants to understand what kind of measures will be taken in cases of property damage or furnishings. This will be a reminder for you and the tenants about how well your property must be maintained. Have a list of items in the property and damages caused before a tenancy, so that you can check off the list when the tenants vacate the house.
It is also crucial to have everything signed on paper.
Run a background check
You may be anxiously awaiting a tenant to rent your property for a long time, but having blind faith in prospects can cause severe damage to your property later. Tenant credentials must be a part of your documentation. It is recommended to take some time to analyse their income statements, credit scores, and past tenancy experience. You can have a series of questions ready for potential tenants beforehand. Or you may even add your concerns to the housing advertisements so you can save time on prospect research.
Have an open communication
Just as you would expect your tenants to understand your sentiments towards your property, be available to listen to their concerns. As a landlord, you must be open to listening to their grievances and expectations from day one. A proper guide on their expense breakdowns such as renovation charges, maintenance charges, annual taxes, and rent will help them make renting decisions that can mutually serve your needs in the long run. Do you want them to rent your property for the long term or do you plan to move back in a year or two? Communicate your requirements and see if they match theirs. A friendly yet honest communication will encourage them to notify you of any changes or damage immediately.
Be careful in screening
Although it is important to screen your tenants based on their eligibility, you must remember not to ask uncomfortable questions for example religious views or gender roles. Any discrimination experienced in the interview can cost you your reputation and may end up with legal implications. It is important to be mindful of legal ordinances in the housing industry to avoid unfavourable situations. Some laws guard the rights of tenants. Also, be wary of how much rent you can increase in a given tenure and on what grounds you can evict a tenant.
Visit the property often
Inform them in advance of your visiting frequency. Apart from your visits to repair damages in the property, schedule your inspections to monitor the tenant’s adherence to guidelines. Also, remember not to intrude in their private affairs. Friendly visits can help you form new relationships in the future. If you are staying afar, you can leverage the assistance of a letting agent who can watch over your property in your absence.
Summing up
While it is natural to make a few mistakes as a new landlord, basic research on your checklists would ensure a smooth start. If you have time or place concerns with managing your property, there are numerous agents you can find online to simplify your tasks. Taking enough time to analyse and find a tenant can save you a lot of time and effort during and after the tenancy.
