Wednesday, February 1, 2017

3 Common Mistakes New Landlords Make - and How to Prevent Them

Whether you're renting out a second home to make some extra cash or managing a multi-unit property full time, landlords have a lot on their plate. It's easy to get overwhelmed by the needs of your tenants and the regulations you're required to follow. Here are three common mistakes landlords make and easy ways to prevent them:

1. Approving the wrong tenants. Resist the urge to jump at the first (or second, or third...) prospective tenant who applies. Instead, take your time to thoroughly check their backgrounds, verify their employment and take a look at their credit history. Landlord references are a great way to ensure you're selecting a responsible, quality tenant.

2. Misunderstanding fair housing laws. Designed to eliminate discrimination and allow housing for people of any background, these laws can be confusing. Take the time necessary to understand your responsibility as a landlord, and don't be afraid to reach out to a property manager mentor with questions.

3. Not budgeting for costs. When the HVAC system in one of your units breaks, will you have money to repair or replace it? You should. It seems obvious, but many new landlords don't budget - or don't budget enough - for the cost of maintaining their property. 

- Scott Safadi, Cal Bay Property Management


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