Renting to friends. Quickest way to ruin a friendship – money and friends don’t mix. They may also expect special favors or considerations, like paying the rent late or not at all!
Reducing rent for said friends because that’s all they can afford & you feel sorry for them! Investment real estate is a business – you wouldn’t reduce the price if you were running a store would you? Accepting less than full rent puts you on the fast track to going out of business!
Failing to do a thorough background check, including criminal and credit. Yes, ensuring adequate income is important, but a background check will reveal relevant historical data like their rental history and pattern of paying their bills. You need to know just what you’re getting into and exactly whom you’re renting to!
Using the cheapest fixtures you can find because “A penny saved is a penny earned” – maybe. Poor quality means more frequent replacement which means higher costs. You don’t have to pay full price but you should buy quality fixtures for greater savings over the long-term. Plus “nice” things mean you’ll likely attract and retain a better tenant!
Doing everything yourself! Is being a landlord the best use of your time? How much time can you devote to keeping up with tenant-landlord laws? Take the emotion out of the equation and hire a professional property management firm… like DavLin Properties!
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Are you compliant? What you don’t know CAN
(Test your knowledge below):
1. A pool sign which reads “Children under age 13 are not permitted unless accompanied by a parent” is legally worded. True or False?
2. Housing families with children in the units at the back of the property is a good idea because then the youngsters can easily play together. True or False?
3. Only apartment units need to have carbon monoxide alarms installed.
True or False?
4. “Cute 1-BR condo for rent; perfect for seniors or retired person.” This rental ad does not violate Fair Housing Laws. True or False?
5. It’s a good idea to only rent to people with wages in excess of two times the monthly rent. True or False?