There are some caveats to being a landlord. These are the biggest mistakes landlords make:
1) Not collecting enough of a security deposit (Especially if pets are involved)
A security deposit is money that is held by the landlord to cover the cost of any actual damages done to a rental property by the tenant.
2) Not checking on the property once in a while (You or someone you trust should at least drive by occasionally.)
The occasional drive-by can tell a lot. Are the tenants cutting the grass and shoveling the snow? Is there trash lying around outside the property? Are there six cars in the driveway? Is there an obvious problem that they haven't called you about? What is the general condition of the property?
3) Ignoring tenant complaints and/or deferring needed maintenance (If you don’t take care of your investment, do you really think your tenants will?)
Neglecting needed maintenance can really hurt the value of your investment. Small repairs can escalate over time if ignored. For example, a small plumbing leak could eventually give way to a soaking gusher that requires drywall and flooring replacement. Fix it now or fix it later, you will have to make those repairs at some point or it will impact the resale value of the home. Plus, the tenants are less likely to care for the home if you ignore any complaints or requests they have.
The 4th and probably MOST CRITICAL MISTAKE that landlords make…
4) Not screening prospective tenants well enough, i.e. credit checks, references (Prior landlords will often give you the straight talk on what to expect.)
Nothing can cause headaches faster for a landlord than a bad tenant. Sure circumstances change and a person could be a model tenant, until he or she loses their job, falls ill or encounters some other life-changing event. But past references and overall credit score are pretty good indicators of the character and trustworthiness of a prospective tenant. A good tenant going through some tough times will still try to do the right thing. You always want good tenants occupying your rental properties.
Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County of Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.
The 4 Biggest Mistakes that Landlords Make - Copyright © 2011, The Scott Loper Team, All rights reserved.
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The Scott Loper Team
Scott Loper - Associate Broker
Lisa Loper - Sales Associate
Gina Wherry - Sales Associate
RE/MAX Realty Group
439 Main Street
Harleysville, PA 19438
Ph: 215-256-1200 x-213
