Landlords love to have tenants and money flowing in every month. Similarly, tenants are happy to find shelter in areas where work takes them. When both the parties give their approval to the terms and conditions of letting out the property, the lease agreement is signed. Once the agreement is signed, the tenant is in the acquisition of the property.
But hey wait! Being a landlord, have you done your homework right? There are many landlords who make these five common mistakes that they should get rid of instantly.
Five common mistakes by landlords while leasing out property
1.Lack of Research:Every landlord wants a tenant that is disciplined in making payments and is polite towards the property that he or she is living in. The biggest mistake they make is getting their rational thoughts dominated by the excitement of potential buyers coming in. They forget to do a proper research on the background of the tenant eventually leading to no payment of delay in payment in the long run.
2.Not taking care of the property:Many landlords believe that the property once leased should be maintained by the tenants. That is absolutely wrong. It is your property and no one will take good care of the property more than you will. So, buck up and get the property damages fixed seasonally so that they tenants know the value of the property and will respect it more.
3.Being Rigid to Amendments:Flexibility is the key to every relationship. If you don’t give enough space to your spouse, there is every possibility that the relationship will be in shatter. Similarly, if you hold your tenants tight under the terms and conditions, there is more probability that the tenants will not have positive feelings for the landlords and thereby result in vacating the house sooner or later. This way, landlords miss potential money minting customers. When you hold something tight, it tends to slip off your hands.
4.Not being professional:Landlords are vulnerable to money that comes their way and they tend to judge a tenant based on the personality. In the past, many had done deals based on “handshakes” and feeling good vibes. But nothing is permanent and no one should be trusted easily. Everything on writing makes more sense to undertake than verbal communication. Written communication is the best communication when it is a business deal.
Another demerit to verbal communication is the perception that the tenant makes about the landlord. He or she tends to perceive you as a person who is not too serious and professional. This results in making the landlords vulnerable to the tenants who are always on the hunt for availing advantage that can go against the landlords. Apart from this, always be ready to be open to making amendments to the lease if the tenant objects to the lease.
5.Not taking action on time:Well, yes it is true that a landlord should be open to letting go of certain terms and conditions under the rental agreement. At times, not taking action at the right time adds to the issue. If there had been an issue in the past and you didn’t take instant action, there might be all possibilities for the tenants to revolt later when you raise voice for the same issue. This can be a situation that can shock you and gradually bitter the relationship.
Landlords can be too forgiving at times and at times too strict. It shouldn’t be the either way. A balance of both the personality traits can be extremely helpful in creating a professional yet friendly relationship with the tenants that result in a healthy relationship for long in the upcoming years. It is further, advisable to have known people in your property than having some unknown people for the sake of getting money at the cost of your security. A proper background check of the tenants is a must that one can’t ignore.
Don’t let tenants rule you. It should be the other way around. However, they shouldn’t be aware that you are ruling them. It should be maintained through assertive dealings with the tenants. Trust me, you will be a lot happier not doing the above five mistakes in future.