10 Common Mistakes That Even Experienced Renters Make (And What To Do About Them)

10 Common Mistakes That Even Experienced Renters Make (And What To Do About Them)

Did you know that 40 percent of property investors plan to expand their portfolios over the next two-year period, an increase of 11 percentage points compared to the previous two years? Real estate investment is still on the rise. It’s important to avoid mistakes that can limit growth.

Ten common mistakes that cost landlords and property management companies time and money have been dissected. Here are a few of the most common mistakes made by landlords and property managers, as well as some practical solutions to avoid them.

#1: No Established Processes

Most landlords do not understand the importance and value of systems and organization. You must automate processes to succeed in realty. Rent collection is the most common.

A landlord who is inefficient will collect rent checks every month and deposit them all at the same time. Someone with a better system will collect rent online and deposit it automatically, saving them the hassle of going to the bank.

Everything is more efficient with a process. From rent collection, to maintenance requests, to lease end paperwork. You’ll be able not only to conquer any organization issues, but also invest in new real estate projects and scale up your business.

No network of vendors

While being a landlord may feel like an all-in-one job, the reality is that managing a property does not. You need to have a team of talented and reliable vendors who are able to step in when your expertise ends. You’re wasting time if you wait on vendors who are always late or cancel at the last minute.

The landlord should at least have a partner to whom they can turn for:

  • Plumbing problems
  • Lawn care
  • Maintenance and Repair of Appliances
  • Electrical problems
  • HVAC

Look for vendors with whom you can establish a relationship and who will do quality work. You’ll save money by not having to repair a poor job.

You can either take the time to build a team you can rely on and trust, or partner with a property manager that has already built a great team.

#3: No Tenant Turnover Process

A common mistake is to hire the wrong tenants. This can be due to rushing through the process, failing to interview enough candidates or using ineffective advertising. You can follow these simple steps to attract the right residents between tenancies.

  • Prepare. Review the experience of your recent tenants. Why did they leave? What went well? What frustrated you? If you are looking for tenants to rent your new property, think about what it can offer.
  • Fix what’s broken. Do not showcase a property that is sub-par. Be sure to do some work before taking pictures, or even showing your property. Update paint, update caulking, check curb appeal and take care of any landscaping issues.
  • Advertise. After you have prepared your space, and thought about the type of tenant that you are looking for, you need to show off your space. Take quality photos of the property, and write a detailed listing. should then advertise the property in several locations .
  • Set Clear Expectations. In the listing, you should state that you are looking for long-term tenants. Let tenants know that if your property is located in a quiet area, they are expected to be quiet.
  • Conduct a thorough screening. Once you have collected applications, the interviewing process will begin. Do a background check after interviews on all candidates you are considering.

You may want to read our article Five Ways to Find Great Tenants if you are experiencing a constant tenant turnover. This will help you to ensure that you don’t have a blind spot when it comes to your selection process.

No Accessible #4

Poor tenant service is another major cause of high tenant turnover. You may make tenants feel more like a nuisance if you ignore urgent problems, make them work to reach you or they contact you repeatedly for the same problem. In the short term, this might mean you receive fewer calls. However, tenants are likely to move out as soon as their rent is up.

#5: No regular maintenance checks

Landlords who are always reacting to situations will be frustrated. It’s time for some changes if you spend most of your time putting out the fires and not proactively growing your company.

Where are the problems most prevalent? Maintenance. Prioritizing maintenance will help you avoid reactive repairs. You should schedule regular inspections and preventative maintenance, depending on how large the property is. This will help you avoid being caught by surprise. Start with our Maintenance Guide.

#6 Complicated Technology Solutions

The technology is great, but can become outdated very quickly. Some landlords spend a lot upfront on “smart properties” that have a lot more unnecessary technology in each unit. You’ll spend too much time updating your rental systems and fixing “bugs” if you go overboard.

It’s not that you should never use technology. Renters appreciate services like automated rent collection or online maintenance requests. Do some research and be realistic before you implement anything new. It’s sometimes better to keep things simple.

Lack of communication

Contrary to popular belief, tenants are happy to hear from their landlords on a regular basis. You’ll appreciate getting an email reminding you that your rent is due, and about any upcoming maintenance. As long as landlords are on top of things, many of these messages can be automated and scheduled.

Communication is key. It’s important to be open and honest with tenants, and to respond to their concerns and requests promptly.

Be sure that your lease agreement clearly outlines all policies and conditions. This will help to prevent disputes and provide a clear plan of action in the event that issues arise.

Bookkeeping: #8: Don’t fall behind!

Landlords, property managers and other professionals who deal with rental properties must maintain meticulous records. It’s easy to put off bookkeeping when you are overwhelmed with maintenance requests or have trouble filling your units. Every penny is important, literally. If you don’t keep track of your earnings, you won’t be able to tell if the effort you put in is worth it.

Businesses that are properly accounted for can be scaled. A clear picture of your business’s performance can help you decide whether to invest in new property or expand.

The Fair Housing Laws: #9

Fair Housing is extremely important. This is a mistake. The Fair Housing Act may be too long to cover in depth in this article. However, a general guideline suggests that you should emphasize the value of the property and its amenities in advertising in order to attract more applicants.

#10: It’s not a hobby, it’s a job

Avoid treating your real-estate venture as a hobby rather than a company. It can be difficult to do this if you have another full-time occupation. If you are managing multiple multi-family properties in your town, whether as a full-time or side job, it requires consistency and a lot of time.

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