Common Landlord Mistakes You Want To Avoid

The rental property business continues to be one of the hottest investment markets across the globe. However, contrary to what many people think, it doesn’t simply involve buying a home, renovating it, and renting it out for an amount higher than its monthly mortgage payment to make a profit. There’s more to it!

To thrive as a landlord, you must approach the business with a professional mindset. Being a successful landlord is a continuous learning experience, and many people become experts by learning from their mistakes. However, there are some mistakes that you can avoid right at the beginning to succeed, even as a newbie. These include:

  1. Failure to Screen Potential Clients Properly

Tenants are a critical success factor of any property, commercial or residential. As a landlord, the last thing you need is tenants who abuse the property with little or no discretion. You also don’t want tenants who continually fail to pay rent on time or fail to do so entirely. To avoid this, it is vital to carry out a rigorous screening process before you entrust them with your property.

One of the best ways to screen your potential clients properly is through a reputable property management firm, such as Merit Co. Property Management. At Merit Co., we are experts in potential tenant screening. We utilize valuable tools that help discover questionable tenant histories and any other potential problems a tenant may bring to your property.

  1. Inadequate Knowledge of Landlord-Tenant Law

Another common mistake that many landlords make is the failure to familiarize themselves with landlord-tenant laws. Unfortunately, if you fail to fulfill certain responsibilities or follow specific procedures, you may find yourself on the wrong side of the law.

For instance, the State of Colorado has a specific statute stipulating the maintenance responsibilities you have on your property and how you should collect and store security deposits. The Act also outlines the procedures for evicting tenants and the circumstances under which you can enter a tenant’s apartment.

There are also federal and state laws regarding offering fair housing to all prospective tenants regardless of their race, color, national origin, disability, sex, or religion. Ensure that you are familiar with all the regulations to avoid unnecessary potential litigation when renting; and entrust a company like Merit Co Property Management to help with these issues, before they start.

  1. Underestimating the Cost of Property Maintenance and Repairs

If you wish to keep your clients satisfied and happy while living in your rental property, you must always keep it in good shape. However, the maintenance costs should never be out of pocket. Ensure you charge your tenants enough rent to help cover partial costs of your ongoing maintenance activities, such as structural repairs, appliance repairs, and repainting.

  1. Trying to Handle Everything by yourself—not Knowing when to Get Help

Another common mistake that many landlords make is failure to acknowledge that they need assistance. They try to handle all the processes on their own, from accounting to property maintenance. This often becomes a challenge as the business grows, resulting in inefficiency.

To efficiently handle your property management, it is prudent to delegate some operations to experts who can handle them diligently and with trust. At Merit Co. Property Management, we are renowned professionals in real estate and property management in Colorado Springs. We help you manage routine activities such as rent collection and property maintenance, allowing you adequate time to perform other managerial roles. 

Need the Help of a Property Manager? Contact us Now!

In a nutshell, managing rental properties can be a challenging task, especially if your business is at the expansion stage or if you are just starting out. However, hiring professionals with the proper management skills can be a game-changer for your investments.

At Merit Co., we are a reputable property management company, helping landlords in Colorado Springs to improve their property management processes. Please contact us online or give us a call at (719) 598-4884 to learn more about top-quality property management services.

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