Landlord Behaviors That Need To Be Fixed
Being a landlord of a rental property can help you earn bigger profits. However, it is not an investment which you will make once and forget about the any other thing in the future. Being a successful landlord requires you to make smart decisions. You will need to have backup plans. Moreover, you will have to make sure that you are appropriately facilitating your tenants too. Nevertheless, you also need to be quite vigilant as well.
Having that said, there are a few unreasonable behaviors which you will need to avoid showing while being a landlord.
Keeping entire cash flow in the pocket
It is a recommendation for everyone to make a cash reserve. There can be a lot of unexpected expenditure which can make a person run out of cash any time.
This rule is very true for a landlord. As a matter of fact, a landlord needs to be quite vigilant about keeping a separate cash reserve. The expenditures of a rental property can be quite bigger than a normal property. You never know when you are required to use that recommended cash reserve in order to get the major portion of your rental property renovated or fixed if there is any problem with it.
The obvious consequence of not keeping a cash reserve is that you will be forced to delay repairs which you need to make on timely basis.
Apart from that, the habit of putting off repairs does nothing good except making it harder for you to repair when it becomes crucial. Even if you have bigger cash reserve, an accumulated task is going to make it nothing less than a financial shock for you to do the repairs. Moreover, delaying renovations will only make your tenants not renewing their contracts.
Not inspecting the property on timely basis
You need to make sure that you inspect your rental property on timely basis. An inspection once in a year is quite crucial. This inspection doesn’t only let you learn about the situation of property but you will also be able to know if your tenants are violating terms from any aspects. Most of the times, tenants bring with them their partners when their relationship status changes and landlords remain unaware about this move until they inspect the property. If you are able to learn any such thing, you can either raise rent or serve as eviction notice.
Deducting costs of normal wear and tear from security deposit
While it is okay to deduct costs for damage repair of the property, it is strictly unethical and unlawful to deduct from security deposits while repairing normal wear and tear.
Not allowing pets
This is the fact that allowing pets in a rental property can make your property getting exposed to the damages. But if you are not doing it, you may be putting a ‘No Entry’ sign for 37% of applicants. Instead, you can strategize the policy of allowing pets. First, you can charge for every pet. Then, you can do a little research to know about the breeds which can be nasty. You can restrict those breeds in your rental property instead of restricting the pets altogether.