Real Estate Expert Winston Deloney Shares Common Mistakes All Landlords Should Avoid
By Space Coast Daily // August 12, 2020
When you make a decision to own a rental property, you also make the decision to become a real estate investor. But that is only the beginning of the responsibility. As the owner of a rental unit, you also become a landlord.
For many investors, this is a new undertaking, and navigating the world of being a landlord can be tricky. The good news is that successful landlords can make off extremely well financially. So how do you become a successful landlord?
We wanted to bring in real estate investing expert Winston Deloney to discuss that. Winston Deloney is well-versed in rental properties, and knows the tricks of the trade when it comes to being a landlord. Now, he’s sharing common mistakes all landlords should avoid.
Not being strict with tenant screenings
When you’re a landlord, particularly a new one, you may be most concerned with filling your rental units. Especially if you have units sitting vacant for a long time, it can be tempting to fill them with any prospective tenant who walks in the door.
But according to Winston Deloney, this can end up costing you big time in the long run. Taking the time and effort to carefully screen your tenants allows you to weed through ones who may not have stable jobs, adequate income, or who may have a history of things like property damage. Down the line, this may mean you have to go through an eviction process.
Not being up-to-speed on rental, tenant, and landlord laws
Part of being a landlord means you need to be sharp as a nail when it comes to the laws related to your business. According to Winston Deloney, this means laws which apply to rentals, tenants, and landlords.
While this may seem like a wide swath of the law to understand, it’s crucial you know what these laws say. Knowing these laws will help you know what you can legally do, what your tenants can legally do, and what protocols you need to follow. Ignoring these laws can cost you big time in the long run. For example, if you violate local rental laws, you could be held liable.
Not being an expert on your market
Becoming a landlord in a new place means you’re one of the neighbors. This also means that you should get to know what’s going on in your neighborhood.
Becoming an expert in your market means you’ll know how to price your units, you’ll know what potential renters are looking for, you’ll understand the local dynamics, and you’ll be aware of any potential issues.
Blindly entering a new market can lead you to make missteps that might be critical to yourself, and potential renters as Winston Deloney pointed out.
Skimping on hiring professionals
Some landlords are masters at handiwork, and take on much or all of the responsibilities on their own. But for almost everyone, there comes a time when you need to call in another expert.
Winston Deloney says that landlords may be hesitant to want to call in professionals, because they think of the cost. But as problems escalate without being properly solved, they’ll become more and more costly to fix.
Not properly marketing your property and business
As a landlord, you are running a business. And for most businesses to be successful, they need to have proper marketing in place. This is also true for landlords and their rental properties. You don’t necessarily need to pour tons of financial resources into your business, but you should have a basic marketing strategy in place.
If a prospective renter searches you online, what comes up? According to Winston Deloney, there are plenty of free marketing resources you can utilize, such as social media and free websites. You can also put a small amount of money into paid marketing, and consider it an investment in your investment.
Not having a network of support in place
As a real estate investor and landlord, you’re the one in control of your property, in a very independent way. But according to Winston Deloney, this can be a major pitfall for landlords, because they can’t be in two places at once. Having a few people, or a network of support in place that you can fall back on, can be huge.
If you get into a tight spot, you should have people who you can call in to help.
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