Did you stumble into property ownership and now need to learn how to be a landlord? You're not alone. Becoming a first-time landlord can be a daunting task.
From finding and screening tenants to keeping them happy and handling disputes, you have a lot to do. If you are not careful, the entire enterprise can be a stressful nightmare.
There are many mistakes that first-time landlords make. However, there are some things that you can do to avoid them. Read on for a guide that will help you escape the most common pitfalls of accidental landlords and set you up for success.
1. Having Unrealistic Expectations
It's easy to get excited about the prospect of making some extra money by becoming a Hammond, Indiana, area landlord. You may have visions of paying off your mortgage faster or even quitting your day job.
But you need to be realistic about your expectations. You may have bad tenants that are difficult to evict.
You will have unexpected expenses, such as repairs and maintenance. Only take on this role if you have the resources, both financial and emotional, to make it work.
2. Not Updating the Property
You probably wouldn't buy a Hammond area house without remodeling it first. So why would you rent out an old property? If you want to attract potential tenants, they need to imagine themselves living there.
One of the best tips for landlords is that updating the property will help you attract more renters and get higher rents. Consider adding amenities that make it more attractive, such as a pool or an upgraded kitchen. It's expensive to update a property, but it will pay off in the end.
3. Skipping the Inspection
You may have heard the saying, "The devil is in the details." It's true with rental properties too. Always do a thorough inspection on any home you want to rent out before offering it to potential tenants.
You can't be sure of what you might miss if you skip this step. It may not seem like it, but small things such as a dripping faucet or a leaking pipe can cause major problems down the road.
4. Trying to Do It All Yourself
If you're a Hammond area landlord, you may feel like it's your job to do everything. However, this can be a big mistake.
You may not have the time or the experience to manage a rental property. Instead, hire a professional property management company that will handle everything for you.
They will collect rent, find new tenants when one moves out, and more. This will save you time and money, which you can put toward other areas of your life.
Accidental Landlords: Avoid These Rental Property Mistakes
Accidental landlords don't realize how involved the rental property process can be. They don't realize that they need to learn how to manage their property and the tenants who live there. By avoiding these common mistakes, you can be a successful landlord and ensure that your rental property is a success.
PMI NWI is part of a larger franchise that's been helping property owners like you for over 20 years. If you need help managing your rental property, contact us today!