Being a landlord is not an easy task. The process of being one might seem a lot easier, i.e., buy properties, make some significant renovations, rent out rooms of your house. But, being a landlord is more than that. To be a successful landlord, you cannot just rent out rooms and sit back. It takes a significant amount of knowledge and experience to gain the badge of a successful landlord.
Without these critical elements, you would lose money, time, and sleep as a landlord.
You are prone to making some mistakes that are going to cost you a fortune. To avoid this, you must know some of the common mistakes you could avoid after posting rooms for rent online.
Here’s a list of mistakes that, as a landlord, you must avoid while you rent out rooms of your home:
- Overpricing your property: This is one of the most common mistakes that landlords end up making. They are not to blame as a fresher is too excited about getting the maximum out of his property. It is necessary that you, as a landlord, understand the current market rental value of similar properties in your area. It would be best if you did this research before you post rooms for rent. Talk to the agents or other fellow landlords to quickly understand their rental value so that you can accordingly price your property. Overpricing of the property might lead to your property staying vacant for a long time.
- Not knowing tenancy laws: Most landlords refrain from knowing the tenancy laws as they are ignorant and feel that these laws are rocket science. You do not want to practice such habits and end up in legal trouble. Every region has its tenancy/rental rules. Suppose you are not familiar with these laws before post rooms for rent, then you might end up exposing yourself to getting tricked. You could end up in a loss and also have a bad rental experience.
- Not screening the potential tenants: This is one of the most important tasks before you rent out rooms online. You MUST screen your potential tenants and not be lazy about it. Most landlords tend to skip this step in haste to fill up the vacancy quickly. Well, this might look pleasing at the start but might cause severe troubles in the future. Screening tenants help you save yourself from the worst kind of tenants. Hence, it is essential to follow this step as you post rooms for rent.
- Not understanding the tenant’s POV: You as a landlord should know that it is not you who will live in your property. You should put yourself in the tenant’s shoes and understand their POV about your property. It is essential that you meet their requirements, understand their needs and concerns, and provide feedback. Only then will you be able to build a great bond with your tenants that will invest in a happy future for both of you.
- Having no clue about the property: Most landlords fail to keep tabs on their property. You must know who is living in your property, the issues at your property, the renovations that need to be made, and everything else. These issues need to be sorted before they become a significant burden as you rent out rooms.
- Underestimating maintenance costs: There is a truth you should always keep in mind- your property will not be permanently occupied. If your property is vacant, you should not act ignorant and know that you have to allocate funds for the mortgage and other costs. Even if you do not have tenants, these bills still need to be paid. Hence, you must frame a cash structure before you post rooms for rent to help you in such situations.
- Not treating it as a business: Maintaining a rental property is not an easy task. To get profits out of your property, you need to treat it like a business and not as a hobby. This means that you maintain separate tabs for this and not mix it up with personal books.
- Neglecting tenant requests: This is another classic mistake that is made by most landlords. Most of them disappear after they rent out rooms and do not entertain any requests from the tenants. It is strongly advised to check on your tenants once in a while and check on them. If you do not maintain a good relationship with your tenants, then they may vacate your property, and you will end up at a loss.
- Not having a legal agreement: Even if it is one of your friends or a mutual acquaintance, you must have a legal agreement made while you rent out a room. This legal agreement will help you in the worst possible scenarios as handshakes are suitable for the present but not for the future.
- Not renovating your property: To stay ahead of the game in the rental market, you must remodel your property as per market trends to make it more attractive to potential tenants.
As said earlier, a successful landlord is a skill gained over years of experience and knowledge. You could very well learn from these mistakes mentioned above and get established in the rental market comfortably.December 3, 2020