1. Not Properly Screening Tenants: Screening all occupants that are 18 or older helps ensure you find high-quality tenants that will care for your home. Screening should include credit, criminal history, eviction history and employment verification. It’s important to set minimum criteria for each to determine a qualified applicant.
2. Not Performing Routine Inspections: Inspections are important to make sure the home is being maintained and cared for. Inspections are also a good opportunity to review maintenance items that may be needed in the near future.
3. Not Reviewing the Rental Rate at Least Once a Year: Regular rent reviews ensure you’re getting a fair price for your home. Prices should be based upon the current market rates for the area of properties with similar amenities. Reasonable annual increases are far better than irregular, larger rent hikes.
4. Not Issuing a Notice When a Tenant is Late: It’s important for tenants to understand the date rent is due. If rent is late, then a notice should be sent right away.
5. Not Starting an Eviction When Needed: Landlords are often hopeful that a late tenant will pay without taking legal action. If the late notice period has passed though, then an eviction process should be started right away.
Avoiding these common mistakes will help you be successful as a rental property owner. Happy Landlording!
