A number of landlord mistakes are commonly made, and they end up costing money. Illegal landlord actions will lead to a landlord lawsuit and tenant complaints. Today, we’re talking about some of the most common mistakes we see, and how to avoid them.
Renting to Friends and Family
This can be a sensitive thing, but you shouldn’t rent to family members or friends. Landlords often come to us and they don’t know what to do because they rented to a family member who suddenly stops paying rent. You should avoid this, because you usually don’t screen friends and family members. No one in your family sits around discussing FICO scores. But, when you’re renting a property to a tenant, you need to see their record of paying bills on time. This is a business relationship and your property is a money making endeavor for you. Don’t just let a tenant slide because it’s a friend or a relative. At some point, it will get ugly and you’ll ruin the relationship. It doesn’t do anyone any good to let this happen.
Property Management Burlingame: Tenant Screening
Not screening tenants is a huge and costly mistake. You have to look at their background, their payment history, and do an income verification. It’s tempting to rent to the first person who expresses an interest in the property. You feel the pain of no money coming in, but it feels much worse when you’re evicting that tenant because they stopped paying rent after the first month. Waiting a few weeks to find a high quality tenant who pays on time and doesn’t damage the property is worth the longer vacancy.
Burlingame Property Management Help
Doing the management yourself or not hiring a property manager is another major mistake. I can see why you wouldn’t want to spend money on something you think you could do yourself. You can probably change the brakes and the tires on your car yourself – but you don’t. You probably don’t do your own taxes, either. That’s because you see the value in having a professional who is experienced in that area take care of these things for you. Professional property management costs money, but it’s tax deductible and causes a lot less stress for you and your family. You’ll end up earning more and getting better tenants. You don’t have access to the resources we do like criminal databases and credit history reporting. It’s not your area of expertise, and people who do this well are available to assist you.
Avoid having your property cost you money by staying clear of these mistakes. If you have any questions about Burlingame property management, please contact us at Five Star Property Management.