For those in the turnkey real estate industry, the landlord side of the rental property is often the toughest part. We can offer you all the financial solutions you’ll need to make turnkey rental properties profitable at Americas Housing Alliance, but some of our most important services come in advising and assisting with landlord duties that are often a whole new ballgame for our clients.
A big part of the game? Avoiding the common hiccups that can quickly get a landlord in bad shape financially and otherwise. Let’s take a look at a few of these frequent mistakes, and how you can avoid them.
The lease is the binding foundation of a rental agreement, and both sides need to protect themselves. The most common mistake many landlords make is simply going with a generic, pre-formatted lease, often found online.
This may seem like a great way to save a few minutes at the time, but if you have a single issue with a tenant, it could be a huge mistake. Your generic lease might not cover you completely, and a good attorney could be able to poke holes in it and create big financial issues for you. Write your own lease and include even the smallest potential issues to cover yourself – have an attorney or the experienced agents at Americas Housing Alliance assist you if need be.
In addition, make sure you know the terms of your own agreement backward and forward. The last thing you need is a surprise along the way based on language in the agreement you didn’t even know about.
The quickest way to get a bad tenant? Not screening well enough. The screening process is where you eliminate any undesirable traits you have in your tenants, and confirm that potential applicants meet your criteria. Don’t skip any steps here, and be as thorough as possible.
Minor issues turn into major ones in a hurry, and you could be costing yourself serious time and money if you’re constantly late addressing tenant service requests. You’re also setting a tone with this kind of behavior: This attitude shows that you don’t value tenants’ time or comfort, and is likely to lose you business and money over time.
Handling evictions when they’re necessary is tough, but also something you have to do the right way. It’s common to let personal feelings get in the way here, but in reality, this should be a step-by-step process. If tenants don’t follow established rent guidelines or break other specific rules which warrant eviction, you have to follow through. Setting a lax example might make other tenants think they can get away with more, and starts a slippery slope. This is to cover yourself as much as anything else.
Want to learn more about investing in rental properties, or any of our other services? Speak to an expert broker at Americas Housing Alliance today.