5 Common Mistakes New Landlords Make

Becoming a landlord and working to find new ways to diversify and grow your income is an exciting time. But, the time commitment necessary to treating your rental properties as a business adds up quickly and requires skills and expertise you might not be prepared or equipped to handle efficiently. Today we are taking a look at some of the common mistakes and challenges landlords face when handling property management on their own.

1. Underestimating the Overall Time Commitment

Managing a rental property takes more time than many landlords expect. There are several tasks that can show up daily like tenant screening, handling maintenance requests, and managing leases which can quickly become overwhelming or unmanageable without a solid plan or dedicated resources.

Tenant Screening: Thoroughly vetting tenants is critical to avoid issues like late payments or property damage. However, background checks, verifying employment, and following up with references take time and rushing the process can lead to costly mistakes.

Maintenance Requests: From routine upkeep to unexpected repairs, addressing tenant needs requires prompt action. Ignoring or delaying maintenance not only frustrates tenants but can lead to higher repair costs and even vacancies.

Lease Management: Tracking lease agreements, renewals, and tenant communications is an ongoing responsibility. Missed deadlines or unclear terms can add up to disputes and legal risks.

2. Poor Maintenance Practices

Neglecting maintenance or cutting corners can lead to significant long-term costs and tenant dissatisfaction. While it might seem easier to delay repairs or opt for cheaper fixes, these decisions often come with hidden consequences. On top of that, it can be a lot of trial and error to find trusted contractors when it comes to managing different types of maintenance.

Delaying Repairs: Postponing necessary maintenance, such as fixing a leaky roof or a faulty HVAC system, can escalate minor issues into major, expensive problems. For example, ignoring a small plumbing leak could result in extensive water damage, mold growth, and higher repair bills. Worse, it may breach lease agreements or local housing codes, putting landlords at risk of fines or legal action.

Choosing Cost Over Quality: Consistently opting for the cheapest repair options or unqualified contractors might save money upfront, but it often results in subpar work that requires more frequent fixes. Poor-quality repairs can also diminish a property’s overall value and tarnish its reputation, making it harder to attract reliable tenants.

3. Ineffective Tenant Communication

Strong communication is the foundation of successful landlord-tenant relationships. When communication breaks down, it can lead to misunderstandings, dissatisfaction, and even legal disputes. Depending on how many tenants you manage, this can often be a hidden and time consuming task.

Unresponsiveness: Failing to address tenant inquiries or maintenance requests in a timely manner can damage trust and lead to tenant frustration. Unresponsiveness may also escalate minor issues into larger problems, such as a delayed repair turning into significant property damage. Prompt and clear communication reassures tenants that their concerns are taken seriously and builds a positive rapport.

Overly Casual or Emotionally Involved Relationships: While being approachable is important, maintaining a professional tone is essential to avoid blurred boundaries. Overly casual interactions might lead to tenants testing the limits of lease agreements, while being too emotionally involved can make enforcing rules or addressing disputes uncomfortable and inconsistent.

4. Overlooking the Importance of Record and Bookkeeping

Accurate record-keeping is critical for any successful business strategy. Without it, you risk financial mismanagement, lost revenue, and compliance issues.

Lack of Accounting Software or Expertise: Manually managing financial records or using outdated methods can lead to things like missing rent payments, untracked expenses, or failure to account for maintenance costs that can quickly throw finances off course. Implementing reliable accounting software or partnering with experts ensures organized records and accurate financial reporting.

Non-Profitable Rent Prices: Setting rental rates without proper analysis of market trends and operating costs can lead to significant losses. Charging too little may leave money on the table, while overpricing can increase vacancies. Regularly assessing market data and adjusting rents ensures profitability without deterring tenants.

5. Lack of Knowledge of Local Laws and Regulations

Navigating the complex web of local, state, and federal regulations can be overwhelming for landlords, yet failing to comply can lead to severe consequences, including fines, lawsuits, or reputational damage.

Fair Housing Laws: Ignorance of fair housing laws can result in unintentional discrimination, opening the door to legal action. Ensuring all advertising, tenant screening, and leasing practices comply with these laws is essential to avoid costly mistakes and foster a fair rental environment.

Safety Codes: Landlords are responsible for providing safe, habitable properties. Neglecting safety codes—such as ensuring proper fire alarms, adequate plumbing, or mold prevention—puts tenants at risk and leaves landlords liable for violations. Proactive inspections and regular maintenance can help ensure compliance and tenant safety.

Eviction Procedures: Evictions are a sensitive process governed by strict legal guidelines. Skipping steps, mishandling notices, or failing to follow proper timelines can delay removals and lead to disputes in court. Familiarity with local eviction laws ensures that landlords can resolve issues efficiently and legally.

There are a lot of daily considerations, upkeep, and expertise needed to successfully manage property. Partnering with the right property management group will help you outline your goals and determine where you need help the most to ensure profitable and long term success of your property. Turner Brothers Property Management is here to help take the stress off managing your property and let you spend more time on the things that matter most to you.