Being a landlord is not an easy task, but it’s also not a hard one if you know what you are doing. It takes years of knowledge and experience to become the most successful landlord in the market. You can never get perfect at something if you dint make mistakes, take risks, and do certain experiments. However, repeating silly mistakes is not the right way to learn.
The smartest thing a landlord can do is learn from other people’s mistakes; here are some of the biggest mistakes that landlords make in general, and if you avoid these, you can become the best in your business.
Ignoring Market Trends:
You can have a castle for rental property, but if you don’t spread the word about it, no one will know about it. If you want to let people know how great your property is, how brilliant the location is, you need to put your best marketing foot forward. A good listing, brilliant pictures, and a catchy title on all online platforms are what you need to market your property. As a landlord, always keep learning, never think that you know it all, keep learning about how you can make your rental property listing the perfect one. How can you make your listing stand out from the crowd of hundreds that are posted online? To get noticed, you will need to look different from all the other listing posted with you. Always start with a catchy title, add a proper description, clear and de-cluttered pictures, and information about where the tenants can contact you. Accurate and understandable details will help your tenant understand your listing and see if it matches their requirements.
One of the biggest mistakes that any landlord makes is sticking to the same price range. Seasons change, there are always changes in the market. Hence you need to keep adapting to the change. You know what they say, “those who don’t bend; break” don’t be so rigid in your pricing; always make sure that you are following the market trends when it comes to setting the price of your rental.
For example, if it’s a slow market, you will need to be flexible and lower your prices to keep your rental occupied. To get tenants at a higher price in a slow market, you will suffer more loss than renting the rental at a low price. A smart always see the bigger picture and adapts according to that, those who don’t suffer in terms of low occupancy rates, losing long-term contracts, and a bad reputation.
Thinking Of It As A Side Business:
Being a landlord is a full-time job, so if you think the rental is your side business, you are making one of the biggest mistakes of your real estate career. Educate yourself as you would in any other kind of job, give this time, make an effort to understand the market and its many patterns. Learn the rental laws, understand how best you can maintain your property, and how best you can attract better tenants. In time, with all this knowledge, you will be able to earn better, invest in more property, and generate better ROI.
Undervaluing Maintenance Expenses:
To make any rental livable, landlords need to make constant changes and upgrades. These upgrades are also known as maintenance tasks, and many make the mistake of undervaluing their maintenance expenses. Whether it’s the roof or a leaking pipe, always give it extra thought and get it to check regularly. If you leave a small issue thinking you will get to them later, you just might get yourself in a bigger problem. Always fix and repair maintenance issues in the shortest time possible to avoid bigger problems that might need more funds to resolve.
Assuming The Occupancy Rate:
Investing in a rental property isn’t easy; you must have taken out a loan, and you must be paying a mortgage on your property; hence you need to calculate your occupancy rate and your ROI diligently. It’s hard to pay all these expenses when you aren’t getting any money from your rental. If you had assumed that your property will always be rented and filled throughout the year and didn’t save anything for a rainy day, you have made a grave mistake. Always have a backup plan as well as an egg nest to fall back on; also, make sure that you are doing everything to increase the occupancy rate, like being flexible with your prices, following the marketing trends as well as marketing your property on the right platforms. Most landlords have a very rigid pet policy, and this can limit their renter’s applications. Ensure that you have a soft pet policy; this will broaden your horizons and get you better tenants. Did you know that you can demand a pet deposit and a high rent rate when you allow pets on-premises? Also, pet owners are likely to sign longer leases than those who dint have pets or kids.
Considering The Rental; Home:
Your rental isn’t your home; it’s not meant for you, so don’t treat it as per your preference. Be smart and decorate your rental as per other people’s preferences. Switching perspectives isn’t easy, but you need to do it so that your rental is liked by every tenant that walks through your door. From furniture to pain to flooring to kitchen cabinets and bathroom tiles, use general and neutral stuff that everyone likes. Don’t go for fashion colors that might offend people. Vivid and bold green, red, and blue walls can put many people off. Similarly, carpeting the whole house isn’t a great idea when you are renting out to people with kids or pets.
Choosing all things general and neutral will help you rent out your place faster than you can anticipate.
The Wrong Impression At The Interview:
As a landlord, you get the chance to interview and get to know more about your future tenant. However, many landlords cross their boundaries and ask questions they shouldn’t. At the same time, many take the interview opportunity lightly and don’t ask the right questions. Educate yourself about the kind of question you should ask and the kind you should avoid at all costs.