While making mistakes is something we are prone to, especially when we have just learned something new. The good thing about making mistakes is the approach we should take towards that and looking at failures as opportunities. However, there are some mistakes that you really cannot afford to make because of the serious consequences they can bring to your life.
As a landlord, it is quite crucial to help prevent any mistakes that can possibly happen as they can badly affect the way you manage your property and even the way you make a profit out of it. If you have been in the rental property business, no matter how long you have been doing it, you know there is always something to learn from every experience with tenants.
Here’s how you can avoid making common mistakes most landlords make so you can have that piece of mind that your properties are properly managed.
The Top Five Mistakes Landlords Should Always Avoid Making
So here are some of the things you should always be on the lookout for as a landlord to better manage your properties and provide a valuable experience for your tenants.
Not Treating Your Landlordship As An Actual Business
Looking at your landlordship as some sort of an extra income without properly managing it can have serious consequences regarding how you prepare for unprecedented events. Not having adequate resources such as consulting a tax expert, a designated bank account, or maintaining a bookkeeping system can likely cause you to lose money.
Overlooking Proper Documentation
Because in order for you to begin renting your property, there has to be an agreement between you and the tenant. Yet, you can’t simply rely on a verbal agreement; you will need to have this recorded in writing. In the event that any issue can arise with your tenant, the judge will be better able to make a ruling with a written agreement.
Ignoring Your State’s Laws Regarding Leases
Having a considerable grasp of your state’s law regarding leases will help you, as well as your tenants, properly understand what both parties are entitled to and what limitations you have. Always make sure that your paperwork complies with your state’s law regarding leases.
Missing To Check Your Tenants’ Background
As urgent as you may be to start renting your property and your tenants to move in, it is important that you run a quick background check on them. Doing so will allow you to be aware of any issues they had in the past and minimize the risk of losing money. Completing rental or credit report authorization forms can help you out on this.
Assuming Your Property Will Always Be Occupied
Although your current tenants may be willing to continue renting your property, it is always good not to stop screening prospective tenants. Also, you do want to make sure that you check with your tenants before the agreement period ends to confirm whether or not you should proceed further with your search for future tenants.
Great news is that now you can rely on a Property Management Company that can help you check off this list and even more.
Here’s An Effective Way To Manage Your Property
Getting the assistance you need to ensure your properties are managed effectively could not get any easier with Harbor Property Management that can take care of every aspect involving the management of your properties from screening potential tenants to handling the collection of rent payments and more.
Harbor Property Management is a property management company in Rancho Palos Verdes that specializes in rental and investment properties with the most competitive fees in the field. Learn more about how Harbor Property Management can help you today.