Investing in and managing an Palm Coast rental property can contribute largely in generating a handsome income for the investor. However, if the property is not managed correctly, it can actually backfire and instead of making money, it can cost you instead. So in order to be a 100% sure of your investment, you can take help from the property management companies that operate especially for the Palm Coast properties and they can help you to not make the same common mistakes to ensure that you do not lose your money or time.
1. No background checks on prospective tenants
The biggest mistake an investor can make before renting out his or her property is to not run a background check on the person who is applying as a tenant. If the investor does not think to run a credit/criminal background check on the applicant, that is basically causing a loss to yourself from your own doing.
A background check is much needed as that gives you an idea about the applicant’s credit position, whether he will be able to pay his bills and rent on time or is that something you need to worry about.
2. Hoping that the property is always going to be rented
This is another mistake that landlords make. They feel overconfident or tend to ignore the idea of the property sitting idle for a long period of time. If that happens, it can be quite a hassle for the landlord. Before investing in a property, you need to make sure that you can cover the mortgage payments, any maintenance costs and the utility bills that come with holding a property. If you are unable to pay for all these costs then that can actually result in you losing the property along with having to pay a hefty amount of legal fees.
3. Not paying heed to cost of repairs and insurance
If you have already run a detailed check on the property then you would know the costs it requires regarding maintenance and repairs. If not, then you have dragged yourself into a huge problem and owning the property will only cost you extra money without making any sort of profits from the property.
4. Failure to enforce lease terms
Owning and renting out a property has some legal implications and is a written agreement between the two parties. However, if you, as an owner, fail to enforce the conditions that we signed at the time of renting, then that can be very troublesome for you in the future. The tenants need to be reminded of their responsibilities while they are renting out your property. If you are not consistent with the rules and regulations then it will act as a disadvantage for you.
5. Failure to meet housing codes
If house codes are not met, then that can cost some extra cash in paying out legal fees or fines. This is because failure to meet house codes is considered illegal and secondly it only means that you will be paid lower rent than the actual worth which will add up to a lower total revenue
6. Good tenant relations should be maintained
When you enter in an agreement with the tenants, then there are responsibilities that fall on the shoulders of both parties. The landlord should be careful about holding up his part of the agreement while the tenant should carry out all the responsibilities required of them by the law.
7. Thinking that handshakes are good enough
In serious agreements that involve things as important as property, a handshake does not do, no matter how well you know the tenant personally. It is essential to have a written business agreement at all costs. Businesses between friends/family based on just a handshake can go downhill without any realization beforehand.
If you’d like to talk more about the value of inspections, or you need help with Everest Property Management, please contact us at Everest Realty.
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Palm Coast Property Management
Flagler Beach Property Management
Ormond Beach Property Management
St. Augustine Property Management