8 Traps and Pitfalls Well-Intentioned Landlords Must Avoid

Have you dreamed of owning property, perhaps several investment properties, in order to have a steady stream of income? How wonderful would it be to make sound investments in residential or commercial properties and make a living from the monthly rental income? Many people do just that and in the process of becoming a landlord have discovered many pitfalls and mistakes along the way. It is important to learn what is really involved in owning rental property before contacting a real estate agent to begin the property search. Check out the 8 issues we cover below to ensure you do not fall victim to common landlord mistakes.

Capital for Start-Up
Every potential landlord needs start-up capital. Not only will the property have a purchase cost but you may have to remodel as well. Do not expect the spending to stop once the property has been purchased. When looking at property, be sure to have additional funds that can be used for remodeling or issues that may arise once you are the new owner.

Constant Repairs
As a landlord, you need to be prepared for the constant need of repairs. When someone else is living in your residential property or running a business in a commercial space that you own, problems will arise. You will be responsible for handling any repairs, from plumbing to HVAC maintenance. Because of this, you will need to have connections. You need to have an HVAC company, electrician and plumbing company ready to provide service at a moment’s notice. You want to be able to provide the essential repairs when they are needed to keep tenants happy. This also has a cost that must be considered.

Rent Collection
As the owner, you are also responsible for collecting rent. While most tenants are responsible and will make payments on time, there are those who will be difficult. You have to be ready to deal with problem renters if the need arises.

Difficult Tenants
Speaking of tenants not paying rent on time, you will also need to take care of difficult tenants. You may find from time to time that you have a tenant that is constantly complaining or may be damaging your property. Be ready to deal with tenants, knowing your rights as a landlord and what to do in any difficult situation.

Evictions
If a tenant becomes too much of a problem, you will need to evict. This can be difficult. You may feel bad for evicting the tenant but it must be done. You must be prepared and know the legal steps to take in order to evict tenants when needed.

Property Management
Your property will need to be correctly managed in order to keep tenants happy. This is best done with the help of a property management company. Hire a property management company to deal with the day to day issues of your property including upkeep, maintenance, tenant dealings and more. Residential property management can mean the difference between being successful and failing as a rental property owner.

Finance Management
It is also important to keep track of your finances as a property owner. Be sure to do a monthly check to know how well your properties are doing. If you have a property that seems to be failing, consider making a change. You can sell the property to cut your losses or make upgrades to help the property gain new tenants.

Security Measures
Depending on where your properties are located, you will need to have a certain level of security. Don’t make the mistake of thinking that your property is safe. Install cameras or other security measures such as motion lighting to ensure your property is secure.

At Latitude Properties, we want to work for you. Contact our office today to find out how we can provide you with essential property management service options for your commercial or residential real estate.