Most Common Landlord Mistakes

Mr. Landlord, a well known speaker and publisher, compiles a list of the most serious mistakes made in rental housing. His survey’s show that forgetting the fundamentals costs landlords thousands of dollars each year. “Landlording is not for wimps,” he says, “stay tough minded and avoid these costly management mistakes.” The top mistakes list printed below represents some of his conclusions and the experience of his members.

The number one mistake by far: Not adequately checking the credit, income and rental history of potential tenants. (Remember, the best indicator of future behavior is past behavior.)

Renting to a friend, or relative, or the relative of a friend.

Not emphasizing at the beginning, and regularly thereafter, the absolute necessity for paying rent on time every time. (No excuses)

Letting a tenant move in without getting certified funds or without getting your full security deposit.

Putting the utilities in the landlord's name when the tenant is responsible for paying them.

Setting rents too low in a rush to fill a vacancy or too high in soft rental market periods.

Not raising rents at appropriate times, then having to try to catch up to the market later.

Letting a tenant get behind in the rent and not dealing with the situation immediately.

Doing repair work just good enough to get by instead of spending a little more and doing it right.

Ignoring a problem tenant hoping the problem will go away. It doesn't. It gets worse!

Paying a contractor or repair person before the job is done to your satisfaction.

Failing to regularly inspect a rental unit during the year to conduct preventative maintenance.

Giving back deposits before doing a full inspection.

Trying to do everything yourself.

Going to court against a street-smart tenant without an attorney, or worse, with an inexperienced attorney.

Not having a reliable handyman working with you and available for emergencies.

Not computerizing your record keeping.

Getting too friendly with tenants to the point that you are making business decisions based on emotions.

Failing to be involved in the political process, particularly at the local level where you do your business.

Failure to understand Fair Housing Laws and how to properly apply them to your property management.

Not providing the tenant with a written notification informing them of what you withheld in security deposit funds and why you kept them within 30 days of their vacating the rental unit.
 

Page 2