New landlords have a tendency of making a lot of mistakes when it comes the issue of renting out their properties to the tenants. Some of the mistakes include being unrealistic about the finances, not doing the regular inspections, being too lenient in the business and forget that it’s a business they are running not a charity. These mistakes can be avoided if the landlords knows how to handle the issues above.
First time landlords use their hearts in business instead of their brain. Most of the tenants pretend to be good and try by all means to convince the landlord that they are trustworthy first time landlords buys that and approves that tenant to rent their property. Landlords must not act in that manner but must able to approve the tenants using facts and numbers.
New landlords tend to forget that they are running a business not a charity organisation. In this business there must be a strictness that must be done because if you always feel pity for the tenants who has failed to pay their rents because of their various reasons you will not make a profit and they will keep on giving you excuses taking advantage of your kindness, this does not mean you have to be cruel
The other thing is that the new landlords tend to become unrealistic about the finances. Most of them they overestimate how much they are going to increase the rent in a realistic way. They also forget about the maintenance of the house and use all the money for personal use and forget to maintain the property and forget the monthly fixed rates to local authority where the property is located in. This will burden the landlord later after realizing that there is a huge amount you are owing for rates.
The other issue is neglecting the regular inspections of the property. There is need to do a check-up and take pictures of the property before the tenant occupies the place this is for the purpose of insurance and inventory. This will help you to compare to current conditions with whenever an inspection is conducted so that you have evidence of property damage if there is an misunderstanding. If you do not do the regular check-ups the tenants can become ruthless and careless because of too much freedom.
Picture Credit: Abodo