Being a rental property owner is like being a parent. Just like how parents have to deal with their children's mistakes, investors have to deal with their tenants’ missteps. And let me tell you, some of these mistakes can really sting! But don’t worry, we’ve got your back. In this blog, we’re going to go over some of the most common mistakes that tenants make and how you, as a investor, can avoid them (or at least minimize the damage).
Not Maintaining the Property
Imagine walking into your rental property after a long day at work, only to find that the bathroom is clogged and the kitchen sink is leaking. That’s a nightmare! Tenants are expected to take care of basic maintenance tasks, like fixing leaky faucets or replacing light bulbs. But when they don’t, landlords have to step in and spend time and money fixing the problem.
Ignoring Rent Payments
Rent is the lifeblood of your rental business. When tenants don’t pay on time, it can put a major strain on your finances. And if you let it go unchecked, it can spiral out of control. So, make sure to stay on top of rent payments and take action quickly if a tenant falls behind.
Mishandling security deposits
Security deposits are like a safety net for investment property owners. They’re there to protect you in case a tenant causes damage to the property or doesn’t clean up after themselves. But some tenants might not understand the proper procedures for returning the deposit, leading to disputes and possibly even legal action.
Skipping tenant screening
Screening tenants is like doing a background check on a potential partner. You want to make sure you’re not getting involved with someone who’s going to cause you trouble down the road. Neglecting this step can result in problematic tenants who damage the property, don’t pay rent on time, or engage in illegal activities.
Breaking landlord-tenant laws
Investor - tenant laws are like the rules of the game. They’re there to protect both parties and ensure a fair playing field. But some tenants might not know the rules, or they might choose to ignore them. And if you’re not careful, you could find yourself on the wrong side of the law.
Not having a written lease agreement
A written lease agreement is like a prenuptial agreement. It lays out the terms and conditions of the rental arrangement, so there’s no confusion or misunderstandings down the road. Without a written lease, it can be tough to enforce your rights and protect your interests.
Not having proper insurance
Insurance is like a safety belt. It protects you in case of an accident. But some tenants might neglect to secure insurance, leaving you exposed to potential financial losses. Make sure your tenants have proper insurance to protect yourself and your investment.
Being a property investor is like being a jack of all trades. You have to wear many hats and be ready for anything. But by being proactive and addressing these common tenant mistakes, you can reduce your risk and protect your investment. Just remember to stay on top of rent payments, thoroughly screen tenants, and have clear documentation. And most importantly, don’t forget to have a sense of humor! Trust us, you’ll need it.