Being a landlord is far from an easy task. At SC Property Management, we are pleased to say we have worked closely with many landlords, and we know the best practices associated with the role. However, we have also learned the way not to do things, and you can benefit from our expertise in this manner. If you want to know the leading landlord mistakes you must avoid, we are here to assist you.
If you don’t vet tenants, you are making a massive mistake
Your experience as a landlord significantly depends on the standard of tenant you have in your rental property. If you have a tenant who pays on time and who cares for your rental property, your life becomes much easier. However, if you have a tenant who doesn’t pay on time and who causes problems at your rental property, being a landlord is stressful.
While it is impossible to predict the future, by vetting tenants, you can minimise the likelihood of problems arising. If a tenant has experienced problems in the past, or a previous landlord offers a negative testimonial for the tenant, you must question whether they are the right tenant for your rental property.
A lot of landlords don’t like to vet tenants themselves, and this is understandable. However, this is not a step that can be overlooked. If you need to call on a professional to vet tenants, so be it, and this is a service we offer at SC Property Management.
Thinking you will always let your property is a mistake
While there is a significant level of demand for rental property, landlords must not assume they will always have a tenant in place. If you have a void period you haven’t budgeted for, you may find yourself in financial difficulty in no time at all.
Therefore, smart landlords allocate funds each month to put aside to minimise the threat of void periods. Alternatively, there are insurance policies or guaranteed rent schemes which offer a greater degree of comfort for landlords. Each landlord has their own level of comfort, so make sure you know what level of protection you require.
Failing to consider the importance of maintenance and repairs is a mistake
Most landlords know they have to pay their buy-to-let mortgage each month, but many don’t consider repair and maintenance costs. This is a big mistake. An industry rule of thumb is that 1% of the property price should be allocated to repairs and maintenance each year.
If you don’t carry out repairs, tenants will become unhappy and may decide to move out, increasing the likelihood of void periods. Equally, if tenants see repair work not be undertaken, they will be less likely to maintain the rental property standard, which will harm the property value in the longer term.
If you are a landlord and looking for property management tips and guidance, please contact SC Property Management today. We have a range of services aimed at helping you manage your property and enjoy success as a landlord.