Published by Leonardo Calcagno
Being a landlord involves more than just owning property and collecting rent. It’s a role filled with challenges, especially when it comes to finding reliable tenants and navigating the often slim profit margins that come with rental properties. New landlords assume that it is easy to simply rent out a property and make money, but there are a number of mistakes that get made that impact profits.
If you’re new to rental property investing or looking to refine your practices, understanding what mistakes to avoid can save you time, legal headaches, and financial strain. In this article, we will go over several of those mistakes so you know what to look out for.
1 – Not screening tenants
Screening tenants carefully is key to being a successful landlord. Skipping this step can lead to problems like unpaid rent, damaged property, and even legal issues. To avoid these, make sure to check a potential tenant’s credit, confirm their job status, and talk to their previous landlords.
If this process seems overwhelming or if you’re short on time, consider getting help from full service rental property management companies in Scarborough. These experts can take over the screening process, ensuring you get good tenants. Plus, this lets you focus on other parts of managing your properties, which might help you make more money and have less stress.
2 – Not maintaining the property
Keeping up with property maintenance and regular inspections is crucial. If you ignore small issues, like a leaky faucet or a crack in the wall, they can turn into bigger, costlier problems later on. Staying on top of maintenance not only keeps your property in great shape but also shows your tenants that you care about their comfort and safety. This can encourage them to stay longer and keep up with their rent.
Make it a point to check on your property at least once a year and fix problems as soon as they pop up. This approach can save you money over time by preventing small issues from growing into big headaches. Plus, being quick to handle repairs can improve your relationship with your tenants, leading to fewer complaints and a smoother rental experience. Keep in mind that a property that’s well cared for attracts and keeps good tenants, which means steady rental income for you and a solid investment.
3 – Not having insurance
Getting the right insurance is crucial when you’re a landlord. Owning rental property comes with its own set of risks, like damage from tenants or natural disasters, and even possible legal issues if someone gets hurt on your property. Regular homeowner’s insurance won’t cover these things for rental properties, so you need specific landlord insurance.
This type of insurance usually covers the building itself, any legal costs if someone gets injured, and lost rent if your property can’t be lived in for a while. It’s a good idea to chat with an insurance agent who knows about rental properties to make sure you’re fully covered.