Landlord disasters and how to avoid them
Being a landlord of a rental property puts you at risk of making terrible mistakes that could cost you dearly. Discover top landlord disasters and how to avoid them in order to become an effective landlord.
Failing to screen tenants properly
One of the costliest mistakes landlords make is failing to properly screen the tenants before they move into their property. As a landlord, you should conduct a thorough tenant screening to assess tenant’s capacity to pay rent, their character, and employment references.
Not having adequate insurance
If you want peace of mind a landlord you need to get adequate insurance coverage against risks that you’re likely to face such as accidental damage to the property or troublesome tenants deliberately defaulting to pay rent. Ensure you get specialized insurance like building insurance, landlord insurance, and pet damage insurance and insurance against void periods.
Not carrying out proper repairs
Because tenants spend more than half of their salary on rent, they expect that when problems arise landlords will rectify them promptly. Landlords must build strong relationships with tenants by ensuring they handle all repairs promptly and manage tenant’s expectations.
Not dealing with a tenant who won’t pay and won’t leave properly
For whatever reasons, a tenant may fail to pay rent and refuse to leave. If this happens, landlords may find their stress levels and utility bills increasing at an alarming rate. You should take the best course of action to eject a tenant to avoid unnecessary lawsuits. The first step is to try and talk with the tenant about the situation and make arrangements for payment.
Having a void property
One of the biggest landlords’ nightmares is having an empty buy-to-let property. This could happen when the rent is too high or the property is in an unfit condition to be occupied. As a landlord, make sure you set realistic rent rates and be open to negotiations. Also, make regular maintenance to ensure the property is appealing to potential buyers.