10 Tips to Avoid Common Landlord Errors

By
Real Estate Broker/Owner with Rummy Dhanoa Real Estate Experts
Some very common mistakes are made by landlords everywhere. This is the top 10 common mistakes that you should avoid. These simple tips will also help you to be a better landlord. No matter how bad the rental market becomes, always remember, NO tenant is better than a BAD tenant"! Failure to check the tenant's ID! You know something is wrong when the rent for the second month is a challenge to collect. There was a perfect example of this: The tenant paid the 1st month's rent and the 2nd was hard to collect. After a few months the landlord learned the tenant's real name from a neighbor!Thankfully, he was arrested by the FBI for fraud. Skipping the credit report! Example: They seemed like they had it all together. Well dressed, nice car, the application checked out... I trusted a fellow landlord and Realtor who "vouched" for the tenant! - Now whenever a fellow landlord or Realtor "vouches" for a tenant, I ask them if they will be comfortable co-signing. Trusting a fellow Realtor? I should have known better. No offense to the many hard working honest fellow Realtors out there! Allowing a tenant to do home improvements. Just because someone tells you he is "handy", doesn't mean he really is. For instance: imagine the nightmares about the unauthorized homemade shower stall in the front coat closet... hose...linoleum...holes drilled draining into the basement... aaaaah! Not increasing the rent for fear of "rocking the boat"! Even a small modest rent increase like $10. is better than none at all. In fact, if you are determined to do NO increase, at least send an increase letter to make a point that because of rising carrying costs, there should have been an increase but you are forgoing the increase because of their fine tenant performance. Waiving the late fee! Just trying to be friendly and avoid confrontations. Build a good landlord tenant relationship... Ha! What a fool! You must stand firm on rental payment dates and any penalties for lateness. Not starting an eviction because the tenant says for months about the money coming! Talk about being a sucker! Do not be naive! Accepting a tenant with BAD CREDIT! Example: She seemed so nice. So honest. Of course all those banks made a mistake on her credit report. Besides it was probably the ex-husband who ruined her credit. Lilly would never lie to me. Some times you just have to trust your gut and take a chance on somebody, right? Wrong! Not bothering to get a signed Property Condition Report! If you do not get a signed property condition report, the tenant conveniently forgets what excellent condition the property was in when they took occupancy. But when you have them sign a condition report at move-in, it definitely makes a difference in how they treat the home during their stay. Not getting a signed Credit Reporting Disclosure! Make it part of your rental routine. If you forgot it, You will regret it! It is a simple fact that when we have a tenant sign a credit reporting disclosure, they make a conscious effort to make their rent payments timely. Why? Because good tenants want to keep good credit. When they think their rent will affect their credit, they prioritize the rent payment. We hope this helps you avoid making many of the common errors associated with being a landlord. ~The Sales Team Of Rummy Dhanoa Keller Williams Realty Group www.FreeNYHomeSearch.com www.RummyRealEstate.com
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Rainmaker
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Michele Cadogan-Cell 917-861-9166
Fillmore Real Estate 2990 Av U, Bklyn , NY 11229 - Brooklyn, NY
Licensed Real Estate Associate Broker -

 

Rummy,

Thanks for sharing these tips.  I bookmarked this to share with my mulitfam buyers who will be landlords for the first time.  Have a great day.

Dec 02, 2011 03:26 AM #1
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Rainmaker
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