As a landlord, both new and experienced in the field, you’re likely to make a mistake from time to time, however by understanding the possible risks you could mitigate their likelihood. Without experience it can be easy to lose money, time and potential tenants by making some of the following mistakes.
A common mistake may be, not doing adequate due diligence on a potential client. While you may be anxious to get a tenant into your property and getting the rent paid, if you don’t do a thorough background check it could end up costing you more than it would have if you had just taken your time to find the right tenant for you. Take your time to prepare a sufficient application form that provides you with the information needed and check in with past references to get a better understanding of the tenant and past credit history. This can help avoid ugly eviction processes which no one wants in the first place.
Some landlords can underestimate the work that goes into keeping a property up to scratch. In order to keep tenants, both current and future interested in renting your property you will need to ensure you are charging enough rent to keep on top of repairs and ongoing maintenance such as re-painting and cleaning. Keeping on top of your decor and appliances offered, will help attract the right tenants.
When it comes to business, especially the property business, you can’t rely on spoken word. It is essential that as a landlord, for your own legal protection all agreements with tenants include a binding document such as a lease agreement. If any issues between you and your tenant were to arise it is essential that you have the written word in order for a judge to make their ruling.
There is also the possibility that there may be a period where you won’t have any tenants in your property and so the financial costs are up to you. Make sure you are always up to date on the latest mortgage offers on the market, as this can save you thousands in times of unoccupancy.
While some of the above points may seem obvious, it is possible they can be overlooked. All the above mistakes can be avoided by working with a quality property management team like KPM Group. Should you need any assistance or further guidance, please don’t hesitate to contact us here at KPM Group. We would be happy to help in any way we can.
