Published on June 6th, 2019 | by Balanced Family
Common Mistakes To Avoid For First-Time Landlords
When it comes to being a first-time landlord, you are going to make a lot of mistakes at first but don’t worry, you will hopefully learn from all of those mistakes and grow your business into something you are proud of. Get out your rental rate calculator right now and figure up how much you will make per year for 10 to 12 rental properties for at least $800 per month. Also, while you have that rental rate calculator out, you can then check to see how much only one property worth $800 per month will be annual. Now you see a huge difference, right? The money you will make from 10 to 12 will be well worth it once you make these mistakes and learn from them.
Avoid Overestimating Rental Rates
Many first time landlords will think they can buy a property, put the extra money they have into making it look beautiful, and then charge a lot for rent. The problem with this is, you are not thinking about maintenance fees of that property. Once you buy your property and fix it up, go ahead with your rental rate calculator and calculate rent prices as well as maintenance fees, taxes, and a lot more that goes into renting out a property to someone who trashes it. Instead of overcharging, try to charge less. Those who pay less usually pay on time and keep the property clean.
Don’t Let Tenants Take Advantage Of You
If you have renters paying late, even a little late on their rent every month, you need to start charging late fees right away. However, if you have them paying really late all the time, it is time to start the eviction process.
Treat It Like The Business It Is
Don’t treat being a landlord like a side project because it isn’t. It takes a lot of work to be a landlord. However, one thing you can do is download one of those landlord apps on your iPhone or Android to help you get things done easier and faster.
Never Underestimate Maintenance Fees
Maintenance fees are not cheap for landlords and when you are a first-time landlord, you will not understand how much the fees really are at first. You don’t know who you are renting too unless you do background checks on the renters. You don’t know how clean the people are and if they are going to ruin or trash the property while living there and even while moving out. Keep in mind taxes expenses also.
Don’t forget about cats and dogs, if you allow the renters to have them in the rental property. They can ruin the carpet and furniture by urinating and defecating all over it. Keep this in mind if someone asks you if you allow pets and think about it really hard before answering them.
Never Ask Friends And Family for Advice
Never ask friends and family for advice because they will all have an opinion of their own. They will also have their own landlord-tenant bad story to tell you. You don’t want to hear this stuff so keep the advice asking professionals like your attorney.
According to rent statistics, 33 percent of renters will move every year.
During 2016, there was an estimated 27 percent of Americans who rented instead of buying their next home.
Also, in 2016, there was 65 percent of the younger generation, people younger than 35 that were renting and were head of the household. This was an increase of 57 percent from 10 years before.