Being a landlord can be rewarding and fun, but it can also be a nightmare. Failure in even one area can lead to a slew of issues, and there are a few common landlord blunders that anyone involved should avoid.
- A lack of property insurance
Landlords may believe that they do not require insurance because they do not have a mortgage. This is not correct. You must protect yourself from liability. You will be held liable if a tenant slips and falls or something else occurs on the property. Lawsuits are costly, and proper insurance is required.
- Being unaware of their tenancy agreement
All landlords, of course, have a responsibility to their tenants, but where do these responsibilities begin and end? A landlord’s tenancy agreement establishes a contractual framework that outlines both the landlord’s and tenant’s rights and responsibilities for the duration of the tenancy. As important as this is, many landlords are simply unaware of the terms of their tenancy agreement. This is clearly a huge blunder.
- Illegal Eviction Procedures
When a tenant fails to pay rent, a landlord may disconnect utilities or refuse entry. You may become agitated if the tenant hasn’t paid in several months, so you turn off the water or change the locks. That is a lawsuit that is unavoidable, and you will lose it. The proper method of evicting a tenant is through legal proceedings in a court of law. When you follow proper eviction procedures, you can regain control of your property.
- Failure to inspect the property on a regular basis
This error can occur for a variety of reasons. Some landlords will claim to be too busy, while others will simply despise the job and put it off over and over in the hope that it will go away. Whatever the reason, failing to inspect your property on a regular basis is a mistake that could prove costly in the long run.
- Delaying Maintenance Issues
It is all too easy to put off maintenance issues until later. However, it is often in your best interest to address these issues as soon as possible because they can escalate into larger problems very quickly.
As you can see, making mistakes when managing your own property is both easy and common. Please contact VPM & Pyramid Realty LLC if you need assistance with leasing and tenants.