There are many unexpected mistakes that landlords can easily make, and those mistakes often end up costing more than the price of a good property manager. This is something to consider if you’re self-managing and worried about your ROI.
Today, we’re looking at some of the most common mistakes we see, which are not only expensive, but avoidable.
Local Rental Market Knowledge
It is definitely important to understand the prices of the rental properties in the local Roseville market. We often see property owners price their homes crazy high, but you need to understand the market before attempting to attach a rental value to your home. Study some comparable data and remember that it’s the market which dictates how much you’ll earn; not what you think your property is worth.
Understanding the Fair Housing Laws
If you do not understand the fair housing laws, it could definitely pose a serious issue. By not understanding the federal, state, and local fair housing laws, you can find yourself facing a discrimination claim without even realizing that you did something wrong. This is one benefit to having a professional Roseville property manager who knows these laws and stays up to date on all their changes. Your property manager can always lead you in the right direction and help guide you to be sure you are following all the laws required by the federal Fair Housing Act.
Proper Tenant Screening
We are always surprised by the mistakes that landlords make by not screening their tenants well – or at all. You want to be sure you’re not discriminating, and we know you may not discriminate intentionally. But, saying that you don’t want children or tenants of a certain race or religion is a huge violation and can cost you thousands of dollars in damages.
Do proper tenant screening according to your rental criteria, which should be in writing and provided to every applicant. It’s the only way to protect yourself from discrimination claims and to ensure you’re getting the best possible tenant in your property.
Poor Lease Agreements
You definitely want to make sure you have a strong lease intact before you rent your home to tenants. If you’re not sure where to find a lease that’s legally compliant in California, talk to a property manager. A property manager can help handle the lease agreement for you to make sure it outlines all aspect of what is expected of the tenant and the landlord.
Sporadic and Inconsistent Showings
Sporadic showings at inconvenient times are never good. If you’re showing your property while it’s occupied, make sure you give your current tenants at least 24 hours of notice.
Interfering with an Expert Management Team
Maybe your property manager is calling to let you know that there’s a $100 maintenance repair that needs to be done, and you want to dispute the need for that repair.
Don’t do it.
You must let them do their job. Otherwise, things don’t get done, and your tenant will become upset.
These are some of the common mistakes made by landlords. If you have any further questions please feel free to contact us at Sunburst Properties.