They say being a landlord is a learning experience. You are definitely going to make some mistakes. But with proper homework and education, you can avoid the mistakes that have proven costly for many.
Here are the most common ones listed for you.
1. Taking Insurance Lightly
Landlords often forget about proper insurance coverage. If you fail to get the right type of insurance, you could end up in a huge financial loss. You will need both property insurance and liability insurance.
Property insurance protects against property damage and destruction caused by vandalism, weather, and fire. Liability insurance protects your property and business in the event of a lawsuit.
2. Non-Disclosure of Certain Information
When you are renting property, the law obligates you to disclose certain information to the new tenants before signing the lease agreement. This includes any deaths previously occurred in the property, presence of sex offenders nearby, presence of mold, etc.
3. Ignoring Property Maintenance
Rental agreements usually specify who is responsible for the repairs. Even if does not specify, it’s the landlord’s responsibility to make repairs. The habitable rental unit is responsible for providing heating, gas, plumbing, clean water, electricity, safe flooring, and roof.
If the landlord fails to offer property maintenance, the tenant can fix the problem and deduct the cost from the rent at the time of moving out. They can also report the violation to the building inspector. Failure to comply can result in a lawsuit.
If you are doing a proper renovation, don’t forget to use the help of a junk removal West Palm Beach FL service for junk and debris removal.
You can ask from the remodeling contractor you currently have about the best trash removal West Palm Beach FL services. You will surely get a recommendation.
4. Failure to Screen the Tenant
Never become sloppy when it comes to screening your tenants. Follow all the required procedures to evaluate the potential tenant. If you don’t take time to learn about their background, there is likely that you will have to evict them. You can also lose rent if their credit score is not good and you don’t know about, to begin with.
Make a questionnaire to evaluate the candidate. Verify the information provided and run a credit check. This will provide you with all the necessary information to determine whether the person is reliable enough to be accepted.
5. No Tenancy Agreement
You cannot possibly handover your property to someone over a handshake agreement. You must have a formal tenancy agreement in place. Not doing so will open you up to all sorts of disputes.
The best way of protecting your property is to have a clear compliant contract that states all the terms and conditions you and the tenant has agreed upon.
6. Delaying Eviction
If you suspect that tenant needs to go, it’s best that you start the eviction as soon as possible. The more it’s delayed, the more costly it will get. Contact an eviction service provider to get rid of the tenant if you are unsure about your rights.
7. Keeping the Security Deposits
The purpose of the security deposit is to cover damages caused by the tenant or in case the tenant defaults. However, once the tenant is moving out, it’s the responsibility of the landlord to provide the balance of the deposit to the tenant. Failure to do so can result in legal troubles.
There you have it! Be aware of the mistakes that people usually make and stay from them. Good luck!