What are the most common landlord mistakes to avoid? Uncover the biggest mistakes made by landlords and how to fix them today.
RELATED: Top Mistakes Made by Landlords - Mistake 1 to 4
When it comes to rent payments, the most common mistake made is not charging the right amount of rent.
Setting the rent is a delicate issue - Ask for too much, and you're going have a hard time finding tenants... leading to high tenant turnover rates and higher vacancy losses. Ask for too little, and your rental income falls to dangerous levels. To make sure that you're asking for the right amount of rent, Click here to learn how much rent you should charge.
Late rent payments are another common pitfalls for landlords. The biggest landlord mistake that you can make here is not imposing late rent fees. Late rent fees are a highly effective deterrent against shoddy tenants - Even with regular tenants, you will save a lot time from not having to remind them of rent payments every month.
And if your tenants are overdue with rent payment, take firm action as soon as possible. Once the rent has been overdue for 48 hours or more, send your tenants a late rent notice letter to ask for the rent and any late fees. To deal with repeat offenders, you can consider giving them a pay or quit notice (which orders them to pay up 3 days or leave the property).
Many landlords think that just because they own the property, they have to right to enter it anytime they want. However it's against the law to do that in most areas as it is considered a violation of your tenant's privacy rights.
Whether you are collecting rent, carrying out property maintenance or showing your property to potential buyers, you will have to inform your tenants of your arrival at 24 hours in advance. On top of that, you can only enter at reasonable hours (meaning no late night visits).
However there are certain exceptions: A landlord is allowed to enter the rental property without advance notice in the case of an emergency, such a fire outbreak or bad water leak.
It's crucial that every landlord has a firm understanding of the law when it comes to landlord tenant rights - Click here to find out what are the important landlord and tenant rights.
While almost all landlords understand the importance of collecting security deposits, they are often less sure of when and how to deduct money from it.
Security deposit deductions are a sensitive issue - There are strict rules governing the use of tenant deposit.
When it comes to property damages, you're only allowed to make deductions if it was caused by the tenant's abuse or negligence. A common landlord mistake is using the security deposit to pay for normal wear and tear damage - It is the landlord's responsibility to cover that.
Before deducting money for property damages, we strongly recommend you Click here to find out what is considered normal wear and tear.
Once you have confirmed that you're indeed allowed to make the deductions, remember to keep a written record of the repair bills. For major repairs, it would be a good idea to take photo evidence of the property damage as well.
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