When dealing with renters, there are several pitfalls that many landlords may fall into. It is important to try to avoid these issues to have a healthier and more secure rental situation.
But what are the pitfalls that should get avoided? And how exactly does a person proceed to avoid them?
Vetting tenants and handling payment
Forbes talks about some of the most common pitfalls of rental properties. This includes some issues that are common and well-known, along with some that many may not even realize exist.
First: skipping background checks. It is always important to know the history of a tenant. Check with past landlords and pay for a background and credit check rather than simply relying on first impressions or gut feelings.
Next: making tenants pay via check. Automated rent payments are the way to go these days, and hardly anyone pays for anything with checks anymore. This also allows for a steady and reliable cash flow.
Maintaining the property
Third: not paying attention to the basement. This is a big problem in winters especially, when neglected areas of a building can easily freeze over and cause the pipes to burst. If a landlord does not take preventative measures to stop this from happening, the water damage and other issues from burst pipes could take a much larger financial toll.
Manage security deposits
Finally: not managing security deposits properly. Many banks offer options that allow for automated maintenance of security payments, which is a good idea because the laws favor renters and not land owners if something goes awry.
It also helps to have an accountant to help manage all of these big numbers, ensuring that nothing ever goes too far off course.