Avoid These Common Landlord Mistakes.

By
Real Estate Broker/Owner with DMK Real Estate Ct RE Broker 0789963

Avoid These Common Landlord Mistakes.

Being a landlord is a full time job that requires follow through and constant maintenance. With a long term plan investment properties can be profitable. If you as landlord cannot commit time and energy to managing your rentals then it might be wise to higher an experience property manager like DMK Property Management in Darien, Connecticut.DMK Property Management Darien Ct

Read and learn about these eleven common landlord misstates to avoid.

Do a full background check on every tenant.
Rental application, credit check, job and income verification along with verifying the rental application will save you a lot of headaches in the future.

Thinking the property will always be rented.
Cash flow is very important; you rentals will not always be full, plan ahead and have reserve monies to cover payments such as mortgage, heat, maintenance issues, advertisement and Realtor fees.

Know the cost of repairs and property maintenance.
Budgeting and keep on top of minor repairs before they turn into bigger issues is key. You will also need to have reserves for the big ticket items that come up such as a new HVAC system, exterior painting, roofing, etc.

Being a Landlord is not a hobby.
Operating rental properties is a business and needs to be operated as such; proper accounting practices, reporting taxes as a business, keeping records are all key items. Best to consult a professional accountant, CPA.

Relying on a handshake.
Yes it would be nice but once again you are running a business, contracts need to be signed along with all other agreements, work to be done, repair to be in writing.

Asking illegal interview questions.
The Fair Housing Act applies to landlords as well, you are now operating a public business.  The Fair Housing Act of the Civil Rights Act of 1968 requires that you cannot deny a tenant's application based on race, color, religion, national origin, sex, marital status, handicap or family status (i.e. if they plan on having children). As well check with your state on local laws pertaining to being a landlord.

Neglecting tenants.
Being a landlord is 24/7, you have responsibilities throughout the contract. You need to check in regularly with your tenants and the condition of the property. Be aware you need to schedule these with the tenant, you cannot just pop by.

State and local housing codes.
Every state has their own housing codes and law in addition to the federal laws. As a landlord you need to know these such as how to deal with security money, evection process, rights of tenants, etc. Here is the link for Connecticut Landlord and Tenant Law.

Delaying an eviction.
You want to be a nice person but once again you are running a business. Not proceeding with an eviction as soon as legally possible can be a costly mistake.

Not enforcing the lease.
You have a lease for a reason, enforce it. If you agreed to no pets then that is what it is. If not your tenants will realize you are lax and will take advantage.

Everything in writing.
As a landlord you must have a record, get everything in writing, repair requests, contract, etc. He said she said does not work in a court of law and many times can be misunderstood.  Along with this pictures are very important form of documentation. Always have pictures of before move in.

 

For more great tips on being a landlord please check out

DMK Property Management’s Blog

and as well Investopedia.

 

 

This article has been written by David Popoff.

 

  David Popoff | Broker 

   Direct Line: 203-228-0646 

Website: www.dmkpropertymanagementllc.com

E-mail: DavidPopoffCt@hotmail.com

 

DMK Real Estate is a full service license Connecticut Real Estate Broker firm that serves lower Fairfield County. With lower overhead costs DMK Realty can fulfill buyers and sellers needs locally and on the internet at lower costs compared to the larger national brands.

 

 

 

Posted by

David Popoff
Connecticut Licensed Real Estate Broker
Realtor® Green
Seller Representative Specialist
Accredited Buyer Representative
candidate
LEED AP Homes

 

DMK Real Estate, Darien, CT.
Cell (203) 228-0646
DMKrealestate.com

 

 

 

DMK Realty, 06820 

 

 

 

 

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Ginger Harper 06/08/2013 11:00 AM
  2. Jeana Cowie 06/09/2013 05:24 AM
Topic:
Real Estate General Information
Location:
Connecticut Fairfield County Darien Downtown
Groups:
CT Shoreline
Connecticut Professionals
Property Management Professionals
All About Fairfield County, Connecticut.
Investment Property (USA)
Tags:
connecticut landlord
fairfield county property management
dmk real estate

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Rainer
339,758
Barbara Tattersall
Keller Williams Realty Metropolitan (Keene,NH) - Keene, NH
GRI

A fellow landlord once told me the only time he got in trouble with a rental is when he didn't follow his own rules. I've also learned-being on the board of directors of a housing authority-that you need a plan for continued maintenance and upgrades to keep properties in good condition. When you are hands on, and visible, without being intrusive, your tenants are usually cooperative.

Jun 08, 2013 08:03 PM #16
Rainer
54,959
Kelly Barbus
Keller Williams Buffalo Northtowns - Buffalo, NY
Keller Williams Buffalo Northtowns
Great blog. I love how some investors think it is as simple as collecting a check every month. As someone who owns investments- I know that is not the case. In NYS we now have to have all tenants sign a Lead Based Paint Disclosure if the house was built before 1978. It always amazes me how many folks do not know this or folllow the law.
Jun 08, 2013 10:03 PM #17
Rainmaker
296,917
Bill and MaryAnn Wagner
Wagner Real Estate Group - Galloway Township, NJ
Jersey Shore and South Jersey Real Estate
Great list and great advice David. Too many landlords don't properly document issues and then have a difficult time removing a bad tenant.
Jun 08, 2013 10:26 PM #18
Rainer
266,688
Edward Gilmartin
Boston Homes - Boston, MA

It is probably a good idea to hire a professional manager to manage your rental properties.

Jun 08, 2013 10:55 PM #19
Rainmaker
697,216
Chris and Dick Dovorany
Homes for Sale in Naples, Bonita Springs and Estero, Florida - Naples, FL
Broker/Associate at Premiere Plus Realty

David, all great points.  In our resort market properties are rented out for "season".  The pitfalls really do need to be addressed.

Jun 08, 2013 10:56 PM #20
Rainmaker
1,120,791
Sandy Padula and Norm Padula, JD, GRI NMLS#1483386
Allison James Estates & Homes & Juncal Real Estate - Carlsbad, CA
Presence,Persistence & Perseverance

David, one of the biggest mistakes landlords make is thinking that a friendship exists with the tenants. First and foremost, this is a business relationship and the lease needs to be the strict rule and guideline for all dealing with the tenants.

Jun 08, 2013 11:34 PM #21
Rainmaker
380,559
Jane Chaulklin-Schott
TEAMCONNECT REALTY - (407) 394-9766 - Orlando, FL
TeamConnect Luxury Homes - Orlando, Florida, 32836
Great post, David - with major points on being successful in the 'Landlord / Tenant' world. It is definetly a business that requires work and skills. Thank you for bringing the topic up for review.
Jun 09, 2013 12:17 AM #22
Rainer
172,569
Marc McMaster
RE/MAX Centre Realty - State College, PA
Putting my clients before myself

Great post and I thikn the most important part of that is getting everything in writing.  Things in writing hold up a lot better in court.

Jun 09, 2013 12:43 AM #23
Rainer
219,134
Suzanne Otto
Six Twenty Designs - Lansdale, PA
Your Montgomery County PA home stager

Great tips David. I think many people underestimate the involvement it takes to be a landlord. It's not for the faint of heart.

Jun 09, 2013 12:44 AM #24
Rainer
79,869
Jennifer Spanbauer Brodoway
Realty Executives - Lethbridge, AB
just call jen

Thanks for the tips.  When people are involved, it can be hard sometimes to run it as a business, but that is what needs to be done.

Jun 09, 2013 01:02 AM #25
Rainmaker
746,871
David Popoff
DMK Real Estate - Darien, CT
Realtor®,SRS, Green ~ Fairfield County, Ct

Wow, I can write a whole other blog with all these great comments and suggestions, if you haven't make sure you read these comments many great suggestions....

Thanks All  :-)

Jun 09, 2013 01:24 AM #26
Rainmaker
1,731,995
Andrew Mooers
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Best tool I have is one question. Tell me about your current land lord. And if the litany spills out about "he is such a jerk, demanding the rent on time every single month and sometimes we are a little short, he had no tolerance for a few weeks late. And garbage, whoa. He was over the top about it piling up. The kids like playing with the rats it generates and hey, two bays in the garage ..we only use one so the other is for bag at a time pile up. And between you and me, when he evicts us, he can clean it up. Not our problem, he'll take care of it and we save the money, hassle weekly. " Okay, I'll get back to you. What is your number again ? (Not writing it down).

Jun 09, 2013 01:35 AM #27
Rainmaker
746,871
David Popoff
DMK Real Estate - Darien, CT
Realtor®,SRS, Green ~ Fairfield County, Ct

Some of my favorite comments on this post are #

2,6,13,14,16,17,18,21,27

Jun 09, 2013 01:43 AM #28
Rainmaker
1,325,367
Michelle Gibson
Hansen Real Estate Group Inc. - Wellington, FL
REALTOR

David - Excellent post and a must read for all landlords out there.

Jun 09, 2013 02:14 AM #29
Ambassador
852,660
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

The Number One complaint at the Oklahoma Real estate Commission other than the mishandling of funds, is property management being done the wrong way. In fact that complaibnt about misuse of funds is a big complaint when it comes to property management. Not only does property management outside your own personal property require a license here, but you need to know the rules. Too many agents thinking they can pick up some supplemental bucks get into serious trouble. A property manager who is truly good is worth every penny. Sure you pay them some of your profit, but the point is, you have a profit.

Jun 09, 2013 02:23 AM #30
Rainmaker
1,246,333
Edward & Celia Maddox
Solutions Real Estate - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

Great landlord information.  Thanks for sharing with us.  Good information to pass onto others.

Jun 09, 2013 03:12 AM #31
Rainmaker
550,142
Bill Reddington
Re/max Southern Realty - Destin, FL
Destin Florida Real Estate

Great list. Has to be in writing. It is a business. If you treat it otherwise you will be taken advantage of.

Jun 09, 2013 04:23 AM #32
Rainmaker
1,002,792
Michelle Cooks
Charles Stallions Real Estate Services - Pace, FL
Pensacola, Pace & Gulf Breeze Property Management

Very good post and points well taken I will bookmark and reread many times

Jun 09, 2013 05:40 AM #33
Rainmaker
1,518,612
Ronald DiLalla
Century 21 Discovery DRE 01813824 - Anaheim, CA
No. Orange Cty Real Estate

Hi David, grat list and advice...Thanks for sharing with us in ActiveRain Land.

Jun 09, 2013 05:44 AM #34
Rainmaker
458,559
Lisa Friedman
Great American Dream Realty - Essex, VT
27 Years of Real Estate Experience!

David, this is a very good post. My biggest mistake as a landlord is having a good heart and letting people slide when they have financial troubles. It always winds up with the tenant then feeling that they can take advantage of a situation. After years of landlording, I now believe that 'tough love' is the only way to keep a tenant in line, although I still give too much leeway.

Jun 12, 2013 02:58 AM #35
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David Popoff

Realtor®,SRS, Green ~ Fairfield County, Ct
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