Top 7 Mistakes New Landlords Make (And How to Avoid Them)

Pluxa Partners

February 23, 2024

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Key Takeaways: ​​

  • Know the top 7 mistakes new landlords make that can help you bypass the pitfalls during your journey.
  • Associate with professionals who can ensure you cover all the essentials required to be a new landlord.

Are you looking for new tenants for your rental property?

Or do you want to invest in the rental property business?

Irrespective of your position as a new landlord, you must avoid a few hurdles that can hinder your growth in the long run.

Although being a landlord is exciting and lucrative, opportunities don’t come without risks.

So, let’s go through common mistakes made by new landlords that can ensure you avoid the traps.

7 Common Mistakes by New Landlords You Must Avoid

You can make multiple mistakes as a landlord, but it’s essential to learn from them and not repeat them. Here are the seven common mistakes that you must avoid:

No tenant screening

Many landlords simply advertise or run a marketing campaign to attract the right fit for their rental property. Once they attract a prospect, they lease their property to the first person who comes along.

That’s not the right way.

It can lead to future issues if you find out that your tenants are not the right fit for you and your rental property.

So, what’s the solution?

You must set up a proper screening process involving credit and background checks to ensure your tenants are in the habit of paying bills on time. 

Not conducting proper property inspection

You should check all the legalities involved before visiting your tenant-occupied property. You don’t want to show up randomly on a Sunday afternoon.

Why?

It can cause legal trouble if your tenants are not happy being uninformed about your visit.

Once you inform them, you can check in on the condition of your property and focus on common unreported issues such as:

  • Overgrown landscaping
  • Slow roof leaks
  • Dripping faucets

It can help you build a solid landlord-tenant relationship.

Not estimating maintenance and repair expenses

While managing your budget, consider how much you’ll spend on maintenance and repairs. 

But what’s the set approach or percentage allotment for these expenses?

There’s no set tone, but setting aside at least 10% of the monthly rent is a good rule of thumb. It can help you stay ahead and avoid any complications in the future

Not making it legal

You must use an appropriate lease form based on the location of your property. Don’t follow the traditional approach of handshake agreements even if you want to rent a single room.

A legal lease agreement is important if things don’t go well with your tenant. You should also mention property-specific policies in your lease agreement.

But what’s that?

For example, you can include a pet policy, noise restrictions, or parking rules. These rules can help you build a strong foundation for future tenant relationships. 

Note: Also, save all the emails or texts about the property your tenants send you in case you need them in the future.

Being too nice to tenants

Building genuine landlord-tenant relationships is a great idea, but there’s a difference between being a great landlord and being a pushover.

For example, if your agreement involves a late fee for unpaid rent after the 5th of the month, you cannot ignore the rules just for a good relationship.

If your lease says no pets and your tenants have a cat living there, you must take action. Moreover, if you have an issue with your tenants, you must start the eviction process as soon as possible because it can take some time to complete.

Failing to budget for vacancies

An important overlooked concept you should remember as a new landlord is that your property won’t always maintain 100% occupancy. At some point, your tenants may leave.

So, it’s a great idea to prepare for the possibility that your properties may be vacant for up to a month each year. It can help you plan better and avoid disruptions in cash flow. 

Tip: You should set aside a portion of your rental income specifically for this purpose.

Assuming property management can be expensive

As a new landlord, you can self-manage your properties to increase your income and profits, but this approach is unsuitable for everyone.

If you have the time and passion for putting in the sweat for self-management, then great. 

If not, you must choose professionals who can handle your hard work. They can assist you in minimising your troubles and saving time and effort, which can be channelled in other important directions.

That’s where you can trust Pluxa Serviced Apartment services.

Choose Pluxa Serviced Apartment

When you list your apartment with Pluxa Serviced Apartment services, you get a property management company and a professional partner dedicated to maximising your rental property’s potential. 

Our end-to-end approach covers everything from marketing your property to attract the right tenants to conducting thorough guest screenings to ensure reliability and compatibility. 

Our team also handles all maintenance issues, ensuring your property remains in top condition and preserving its value and appeal.

By listing your serviced apartment with us, you can rest easy knowing that professionals handle every detail. It can help you spend less time on the day-to-day tasks of property management and more time focusing on other investments or enjoying your earnings. 

So, what’s making you wait?

Contact our team and address your requirements so that we can offer you tailored solutions which can lead to your rental business goals.

FAQs

What mistakes do landlords usually make?

Landlords often make mistakes such as: 

  • Inadequate tenant screening
  • Neglecting property maintenance 
  • Underestimating repair costs
  • Not formalising rental agreements 
  • Being overly lenient with tenants 
  • Not budgeting for vacancies
  • Assuming property management is too costly

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