Common Mistakes Landlords Make While Letting Out Property – A Guide for Newbie
By Space Coast Daily // November 12, 2021
If you are a first-time landlord, letting out your property can open up a new and potentially lucrative income stream. However, it is easy to make mistakes that can spoil your experience and negatively impact your return on investment.
Some eye-openers on common mistakes you need to stay clear of while renting out your property:
Saying Yes to the First Applicant
Accepting the first proposal that comes your way can be a big mistake. Even though government rules and regulations prevent you from discriminating against tenants on various grounds, you need to be sure that the tenant will pay the rent on time, not damage the property, and keep it clean. He should also not be a nuisance to others residing in the property and the neighborhood.
Not Having a Foolproof Lease
There is a no bigger mistake than not having the tenant execute a well-crafted and foolproof lease agreement that looks after the interest of both parties equitably. You must have the tenant sign the lease agreement even if you know him well for your protection. An effective lease agreement will specify all the terms and conditions and the responsibilities, obligations, and penalties of both parties.
A well-structured lease agreement helps both parties to maintain their relationships responsibly, says an Abode Manchester property consultant.
Being Discriminatory Against Tenants
The law prevents landlords from discriminating against potential tenants on grounds of race, color, nationality, religion, sex, disability, and familial status. For details, you can refer to the document on tenant discrimination issued by the Home office, Government of U.K.
Regardless of your personal preferences; you must be willing to consider all prospective tenants as equal. By not discriminating against prospective tenants, you will protect yourself from complaints and stiff penalties.
Not Providing Good Customer Service
As a landlord, you must organize and operate your letting operations just like you would for a small business. Your tenants are your customers, and you must, therefore, be on the alert to know what they want. If you don’t pay attention to your tenants, they are liable to feel neglected and exploited, and it is likely to damage your reputation and leave you with empty units.
On the other hand, maintaining a good relationship with your tenants and building goodwill with prompt customer service is likely to improve your reputation and fetch you rates better than the market.
Ignoring Preventive Maintenance
While it is obvious that you will need to respond faster to immediate issues, ignoring the need to perform preventive maintenance will ensure that you are perpetually putting your tenants and yourself into troublesome emergencies. HVAC systems, plumbing, sewerage, etc. perform optimally when periodically maintained. Properly maintained rental units not only fetch better prices but save you a lot of money in the long run.
When you are letting out your property for the first time, you will inevitably take some time to learn the ropes, during which you will likely make mistakes. However, when you know the most common ones, you will be able to sidestep them and spend less time, effort, and money.