When you are a landlord for the first time, there are mistakes that you can make that will derail your whole plan for success. There are some specific pitfalls that you might fall into if you don’t watch yourself during the process. Remain conscious of the following:
- Laws – nothing will threaten the success of your rental property more than a little bit of misstep with the law. It doesn’t matter whether you break a law regarding a tenant or with your property itself. You might find yourself getting sued or having to pay a hefty fine. The potential implications are undesirable, no matter which way you try and look at it!
- Tent pricing – make your rent too high and you might never be able to lease it out. Price your property too low, and you might not be able to turn enough of a profit should any of your expenses, such as property taxes, increase.
- Location – location really can be everything and the wrong house in the right location, or the right house in the wrong location can be the downfall of a property. This step of the landlord journey must begin at the time of purchasing the investment property.
- Maintenance – although short-term maintenance may cost you, failing to take care of the home will cost you even more long-term. After all, you need to preserve your investment until you put it on the market in hopes of turning that profit.
- Tenant choice – believe it or not, proper tenant screening can save you a world of trouble. If you don’t screen your tenants, you’re likely to eventually find yourself with a freeloader resident who costs you many months’ worth of rental income.
There are other pitfalls that you might find yourself falling into; however, the ones outlined here are among the top issues that new landlords are likely to experience. Educate yourself before going into the endeavor. That way you can jump right in with both feet in hopes of becoming successful!
Source : rentapp