When you are a new landlord, it can be hard to know what to expect and what you need to do to maximise your income.
Here are some common pitfalls that many new landlords find out about the hard way.
Not charging the right rent
When you buy a property, do some research on similar properties in your area. If you set the rent too high, no one will want to rent it and it will sit vacant while you lose money. On the other hand, if the rent is set too low you won’t make any profits and not only that, you may attract undesirable tenants.
A property manager will be able to inform you on similar rentals and advise you on an acceptable price.
Not keeping track of payments
Money should always be on your mind. If your tenant doesn’t pay their rent, it can be a very lengthy process to resolve and could leave you considerably out-of-pocket.
Keep tabs every week or month when rent is due and if your tenant doesn’t pay on time, you can send them a notice. This process varies from state to state so be aware of your local laws.
Monitoring rent payments and contacting tenants sooner rather than later may help resolve issues and mitigate any financial loss.
Not doing regular maintenance
The #1 complaint from tenants is that their landlords take too long to do repairs. Not following through can put unnecessary strain on your relationship.
If a maintenance issue arises and you don’t fix it, you may be liable if your tenant injures themselves.
Sometimes, the tenant may decide to fix it himself or hire a shoddy contractor, which can cause more damage to the property. Make repairs a priority and ensure they are completed to a satisfactory standard.
Trying to self-manage a property
It can be stressful for landlords to manage their investment properties. Most of them simply don’t have time to do it. Yes, you can save money by doing it yourself, but the benefits of having someone take care of everything for you can outweigh the costs.
Property managers will check the property on a regular basis to see what maintenance needs to be done. They also find and screen tenants, and they have a list of tenants who are known for not paying rent, damaging their rentals and being evicted.
If a dispute arises with a tenant, property managers know the correct procedures to help resolve the problem as quickly as possible.
Hiring a property manager eliminate these mistakes for you. Contact True Property Management for more information.