8 common landlord mistakes to avoid
Being a landlord is exciting. The real estate industry all over the world is one of the best investments you can make. However, there is a lot to learn along the way. Sometimes you make mistakes or even learn by experimenting.
Generally, investment in real estate is lucrative, and still gets better when it’s rental property investment. This notwithstanding, making landlord mistakes might be costly financially, emotionally and even physically.
You can avoid unnecessary hustle and bustle by working both hard and smart. Here are some helpful tips on mistakes to avoid.
1. Not Pricing the Rental Units Strategically
Setting a rent rate that is either too low or too high will hurt your revenues. Look out for the average rates in your area and price your property accordingly.
Too high will rates will send away potential tenants while too low rates may attract the wrong renters or put you in conflict with other property dealers in the area.
Proper market research will give you a clear picture. At the same time, consider the timing as you do your pricing.
2. Not Getting the Right Insurance Packages
Insuring your property is an essential part of house ownership. Some decide not to have any insurance covers at all, while others don’t choose the right packages.
Modern insurers give polices that even cover natural disasters such as storms and floods. If you own a property in an area prone to such calamities, such a package is essential.
3. Little Knowledge of Tenant Laws
Tenant-landlord relationships are well anchored in law. Most states and provinces have set guidelines, touching on matters such as rent collection, evictions, and other conflict-resolution mechanisms.
However, many landlords don’t take time to familiarize themselves with these laws. These laws cover both parties and outline the role of each part.
Even where you draw a customized contract between you and the tenants, it is essential to get familiar with the laws of the land.
4. Postponing Repairs and Maintenance Schedule
It is the work of the landlord to keep their property in the right shape. Neglecting repairs only leads to deterioration of the property.
The danger of it is that it can cause harm to tenants, which is even more costly. Furthermore, a poorly maintained property will attract lower value in rent rates…