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Sharing the top three mistakes landlords make that cost them big time.
If you own a rental and have decided to manage it yourself, know that there are a lot of important things you need to consider. During my time in this industry, I have seen so many landlords run into the same problems that could’ve been avoided. To help you steer clear of this and successfully run your rental, here are the top three costly mistakes that landlords make:
1. Not accounting for the unexpected. Make sure to have adequate insurance for keeping up with the property and handling legal issues. Also, financially prepare for periods of vacancy. Lastly, don’t forget that maintenance is inevitable—you need to prepare for that financially.
2. Not charging enough. You want to be competitive with pricing, but you also need to make sure you earn money on your investment. Otherwise, what’s the point? Therefore, make sure to consider things like raising your rates with inflation and charging a big enough security deposit to deal with issues.
"If you decide to invest in real estate, you need to be careful."
3. Not sticking to the book. By this, I mean there are two vital things you need to consider: putting everything in writing and making sure you know the laws well enough to follow them. For example, even if you know your tenant is a nice person, put everything you need from them in a signed contract. Also, research to make sure you know the legal requirements in your area so you don’t accidentally do something like ask illegal interview questions.
Overall, know that if you decide to invest in real estate, you need to be careful. If you have any questions about these mistakes or want help managing your property, don’t hesitate to reach out. You can call or email me anytime, and I would be happy to hear from you.