The idea of renting our property that you own, but the realities of being a landlord can be a rude awakening for many. It may seem like all you have to do is cash those rent checks each month, but the duties and responsibilities that come with being a landlord are much more complicated. Before you stick a “For Rent” sign on your front lawn, learn about the biggest mistakes landlords make and how you can avoid them.
Under Budgeting for Expenses
Expecting free money every month can get you into trouble. As it turns out, being a landlord can actually be pretty expensive. If you plan on managing the property yourself, you can expect to spend a lot of your time and money on maintenance calls and fixing repairs. Make sure that you have enough money stashed away to deal with problems as they come up.
Not Checking in on Tenants
As a landlord, it’s your responsibility to keep an eye on your tenants. Unless you have experience interviewing tenants and supervising a rental property, you could get blindsided by an unruly guest. Find the time to follow up with your tenants on a regular basis to make sure that nothing inappropriate is happening on your property when you’re not around.
Assuming that the Property Will Rent Itself
Depending on the local real estate market, you might have a harder time renting out your property than you think. Someone might break their lease early, a messy eviction could set you back months, or you might not understand how to effectively market your property to potential renters. Assuming that your property will sell itself could leave you with an empty property and zero revenue.
Failing to Comply with State and Local Laws
Being a landlord also requires some legal know-how. Before you hand over the keys, you need to make sure that you’re complying with your state’s fair housing laws. Without some professional real estate experience, you could find yourself in court.
Trying to Do It All on Their Own
With all of the items on this list, it’s clear that being a landlord is more than just a hobby. In fact, it could easily turn into a full-time job. If you put your property on the market without the help of a property management company, expect to devote a sizable chunk of your time to being a landlord. Between marketing your property, making repairs, finding and interviewing tenants, and complying with state and local laws, you can easily run yourself and your property into the ground.
Instead of trying to do everything on your own, you can rely on the professionals at JS Tamers Property Management. As a leading property management company in Southern California, JS Tamers can handle all aspects of your property, from tenant screening to property inspections and revenue management. Contact us today to learn more.