Sometimes when we focus a little too hard on what needs to be done, we lose sight of what we absolutely must do, and thus end up making mistakes. We’ve already talked about what you should do when renting your property. This article will highlight common mistakes to avoid when renting a property.
Not Reading up on the Tenant – Landlord Law
Reading up on the law is a step you should repeat as many times as you rent to a new tenant. Laws change from time to time, and it’s plausible that you are unaware of the latest changes. Not reading up on the changes can get you into serious trouble later on, especially if you find yourself dealing with a tenant well-versed in the law. They can even use it to get an unfair advantage, and you won’t be able to do much about it as you did not draft the lease agreement accordingly.
Not Double-checking Maintenance Work
Before you rent out a property, make sure you handle all the necessary maintenance work. Even if you got all the leakages fixed just last month, make sure you double-check it so that the tenant cannot claim not to be responsible for damage caused by them.
Not Taking Pictures
After you get all the maintenance work cleared, take pictures. They serve as proof and can help your case, especially when you find yourself dealing with a stubborn tenant who refuses to take responsibility. In fact, these pictures can also help you get a better insurance deal as they serve as proof that the property is well-maintained.
Being Lenient with the Tax Screening Process
We cannot stress enough upon the importance of establishing a thorough screening process. Do not trust anyone. Whether it is a close personal friend who referred the tenant or a family member, your job is to screen each potential tenant before renting your property, and you should never skip on it.
The fact is, you could live next door to a person all your life and not know what’s going on in their basement. A strict screening process can help you find out any peculiarities in their credit records and income statements, even alert you of any criminal records so you can be on full alert when dealing with such applicants.
Hiring a Real Estate Agent to Manage Your Rental Property
A real estate agent is not a property manager. Some companies claim to offer both services, but not all of them are actually certified to do so. However, a property management company can help you find investment opportunities and conduct market research, draft listings, provide tenant screening services, and more.
Make sure you check whether the company you are hiring is a specialized property management company or not. We suggest you go for a full-service property management company as they can give you the ultimate hands-off experience owners seek when hiring property managers.
We didn’t include this in our list of mistakes to avoid when renting a property, but do not skip out on insurance. It is going to protect you from incurring heavy damages in case of unforeseen circumstances. We’ve said it before, and we’ll say it again, it is better to be safe than sorry!