Property Management: Costly Mistakes Landlords Make

New landlord mistakes

Being a landlord sounds so easy when you say it quickly; however, it’s also a business that is filled with pitfalls for the unwary, the careless and the lazy! On that note, we can start at the very beginning with choosing your tenants. Firstly, check their credit references, as you will discover that the majority of your future issues will be contributed to by tenants with a poor credit rating. So, take the time and energy to do this particular task properly! If you have a Kitchener property management team acting on your behalf, stipulate this as a priority!

Investing in the right property

If you believe that just buying a property will bring you a fortune, forget the fame part, then also take into account that your success as a landlord will depend on the type and location of the property you buy. A tip on this one is that if you find it hard to make the financial figures work out for you, remember that a negative cash-flow from a property can be your downfall! So, if you’re finding it difficult to make the fiancés work out, move on, or get some advice regarding property management in Kitchener!

Investing in the right tenants

If this sounds like a strange title, it’s also a true one, because the success of your venture as a landlord depends on not only the quality of your tenant but any vacancy periods without them!  For example; if you own a rental property that has stood vacant for over a month, gobbling up your money and you finally receive an application, although it can be a relief, there is only one situation worse than a vacant rental property. That is a difficult tenant, wrecking it and not paying you rent for the privilege!  

In the business of property management in Kitchener if you decide to make a mistake, then consider the financial result in the thousands of dollars. This can be caused by negligence on your part in not thoroughly vetting the tenant beforehand. Don’t be shy about informing applicants that you will conduct not only a credit check but also enquire about a possible criminal background and request proof of earnings!

Should they not like it, tough, because it will be an indication that could save you a lot of money and trouble and remember, you are protecting your investment!