It may seem easy to buy a property, renovate it, and let it out for a monthly rent. However, being a successful landlord requires more than that. You need to think of yourself as a professional and work with the mindset of a business person in order to manage your investment properties efficiently.
However, without the pre-requisite experience, it is easy to lose money, time, and resources by making the following common landlord mistakes:
Failing to Conduct Adequate Checks on Prospective Tenants
The first step to getting the right tenant for your property is to run a complete check on the credentials of each prospective tenant. Best practice is to use a rental application form that will provide all the necessary information. Then take your time
to verify references, which should include employers and former landlords. If you wish, you may want to check their credit report. This includes bank details, history of late payments, delinquent accounts, etc.
Many inexperienced landlords make the mistake of being too eager to accept payments immediately without conducting these checks. This can leave them with an unsuitable or problematic tenant and ultimately cause damage to their business.
Neglecting Repairs on the Property
To attract a higher calibre of tenant, it is important to keep your property in good shape. Effective maintenance and repair works such as cleaning, painting, plumbing, and servicing faulty appliances will help preserve the value of your property while attracting quality tenants.
However, inexperienced landlords often ignore these vital repairs to the detriment of their properties.
Ignoring the Tenant’s Needs and Rights
A happy tenant always makes a landlord’s life easier. However, many landlords never pay visits to their properties, let alone ask the tenants how they are doing. As well as checking on the condition of the property, a simple “how’s everything going?” can make all the difference. It is also important to pay attention to the rights of your tenants; they are protected by law, and violations can result in serious penalties.
Failing to Enforce Lease Terms
A new tenant usually signs a lease agreement before moving into a new rented property. The lease agreement contains terms which must be upheld by both the tenant and the landlord. It is the duty of the landlord to enforce these terms.
If the lease prohibits pets in the property, then enforce it. If you stated that late payment of rent will attract a penalty, then follow through on it. The tenants are watching, and it’s up to you to set the standard. If you don’t enforce lease terms, some tenants may take advantage or grow negligent.
On a final note, if you are not sure of how to successfully start a career as a landlord, then align yourself with a property management company. Green Acorn Property is based in the Bath and Bristol areas of the UK. We take pride in the level of service we deliver and have built a reputation for professionalism and attention to detail. Therefore, you can always be sure your property is in safe, experienced hands.