Regardless of what type of business someone runs, mistakes are bound to be made. However, there are some mistakes that landlords seem to make all too often.
Here are five common mistakes other landlords make to ensure you steer clear yourself.
1. Leniency with rent collection
When running a business, you have got to make sure you receive payments. How else do you keep the business up and running? By letting a tenant slide one time, they are going to think they can do it again and again. Make sure you have a set rule that after a certain period of time there will be a late fee and each day after that additional charges will be made.
2. Failure to prescreen tenants
Prescreening tenants closely it crucial to ensure each applicant is qualified. Always look at the tenant credit to see how they have fared well with making payments in their life. Take a close look at their criminal history to make sure they do not have a violent past. Also, check into their previous rental history to see if they have one for starters; and if they have been evicted before.
3. Lack of eviction
If someone does have weak tenant credit and you let them slide, it is crucial you watch them closely with payments. If a trend begins to develop where they are consistently late on payments, it is crucial you put your foot down and collect late payments or evict them. Far too many landlords are lackadaisical about evicting tenants who are late on payments or not even paying at all.
4. Trying to do too much
Every business needs some kind of help, including landlords with apartment complexes. Do not try to do everything on your own as it will wear on you and decrease the quality of performance that is done. Hire a handyman to take care of any damage, a carpet cleaning company to clean the carpets, and any other sort of assistance that may be needed to keep your complex up to par.
5. Lacking expense operation experience
Feeding off of the last point, do not try to handle all of the expenses if you are not the best with math or do not fully understand how to deal with expenses. Someone with a poor tenant credit could easily get by if you do not understand all of the expenses going on in the business. If need be, hire an accountant or another employee who can deal with the expenses.