It’s easy for private landlords to make simple mistakes when they’re managing their own income property. However, those simple mistakes can sometimes be costly. Today, we’re sharing the three most common mistakes we see landlords make. Protect your investment and your ROI by avoiding errors like these.
Property Management Companies Northern Virginia: Tenant Screening
Poor or inadequate tenant screening is a huge mistake. To earn money on your rental property, you need to have an excellent tenant in place. Don’t cut corners when it comes to screening. Check credit and criminal histories as well as employment and income. You want tenants with a record of paying their bills. You also want them to earn at least three times the amount of your monthly rent. Talk to former landlords and find out if the tenants paid on time and took care of the home. Screening is essential, and if you don’t have the resources to screen thoroughly, hire a management company to do it for you.
Property Management Bethesda: Security Deposits
Security deposits are subject to the landlord and tenant laws in your state. Those laws govern how much you can collect, where you must hold the money, and under what circumstances you can withhold all or part of the deposit at the end of the tenancy. Most tenant disputes will occur because of security deposits. Make sure you collect a reasonable amount, and don’t spend that money until you’re repairing any tenant damage at the end of the lease. If you make a mistake with security deposits, a tenant can take you to court and you’ll end up paying the full amount of the security deposit, and possibly more.
Property Management Arlington: Move-In and Move-Out Inspections
The best way to avoid security deposit mistakes is by doing a thorough move-in and move-out inspection. The most common mistake among landlords is not documenting the condition of the property at move-in. You need to inspect the home and take a lot of photos. This will demonstrate how the place looked before tenants moved in. Then, you can compare it to your move-out inspection. This documentation makes it easy to distinguish normal wear and tear from tenant damage. Do these inspections, and document them.
If you have any questions about real estate investing, or you’d like to talk about our Arlington property management services, please contact us at Leaseably. We are an online property management company providing high quality services for affordable prices.