Today we’re talking about some of the most common mistakes that landlords make when they are managing their properties.
Inadequate Screening
Some property owners may decide not to screen their prospects. This is the biggest mistake you can possibly make. It’s important to screen anyone over the age of 18 who will be renting your property. Screening can be costly, usually between $10 and $50 per applicant. We recommend that you ask the tenant to pay for the cost of the screening, which is called an application fee. Make sure you do a thorough tenant screening without any exceptions.
Income Requirements
Have a reasonable financial qualification guideline in place when you’re reviewing your tenant applications. This establishes the amount of money that the tenants will need to earn in order to afford the rent on your property. You need to know your renter’s income level, how they get paid, how frequently they get paid and whether they are hourly, salaried or paid through commissions. Ask this during the screening process and then verify the information you receive. There are also laws in regards to security deposits as well.
Reasons for Moving
It’s important to know why they’re moving. When you’re verifying a rental history, remember that not every landlord is going to give you accurate information. You have to look closely at the application and ask tough questions. Find out why they’re moving and make sure the answer makes sense. You don’t want to make the mistake of ignoring this information or neglecting to find out the tenants’ reason for leaving their current rental.
Proper Pricing
Landlords often make mistakes when they’re pricing their property. Always set the price for your property according to the market and the neighborhood. You should have a fair market rent value for your rental home. Setting the price too high or too low will cause problems when it comes to getting your home rented, and it will cost you money. Know the market so you can set the price correctly to find a qualified A+ tenant.
Fair Housing Laws
Making a mistake with fair housing laws can get you into legal trouble. This is a very important law and you need to follow it religiously. That law is in place for your benefit and you should know it.
There are a number of additional mistakes we can talk about, but these are the most important errors to avoid. If you need any help or you have any questions, contact us at Alborz Real Estate.
