Backgroundfinder- Get Instantly Email Reports

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by: Zackallen
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Date: Mon, 25 Apr 2011 Time: 11:26 PM

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Most landlords make mistakes. Although most of those mistakes are minor and result in no long-term problems, many are potentially serious and some can be financially fatal. We’re talking about mistakes that can result in (1) significant reduction in revenues, (2) greatly increased expenses, and (3) lawsuits and/or fines. Some mistakes only cost a month or two of rent. Other mistakes can potentially cost (1) many thousands of dollars, (2) loss of a property, or (3) even one's entire net worth.

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Fortunately, most landlords do not have to pay for most of their mistakes. This is for a number of reasons, including the fact that most applicants and tenants don't recognize the mistakes and if they do, they choose to ignore them. The thing in common about all of the mistakes is that they could have easily been avoided.

Lack of Knowledge - A surprising number of landlords are seriously deficient in knowledge of landlord-tenant law, fair housing laws and other laws that regulate rental housing and have little understanding of good management procedures. Education must be ongoing in order to improve management procedures and to keep up with changing laws.

Screening & Selection Deficiencies - A large percentage of landlords do not adequately and do not legally screen applicants. Many do not base selection of a tenant on good legal procedures. A majority of landlord-tenant problems and financial losses can be traced to inadequate screening and/or selection procedures.

Inadequate Lease Agreement - Many landlords do not utilize adequate lease agreements. Some landlords do not even utilize a written lease agreement. An adequate lease agreement reduces misunderstandings and provides support if you end up in court.

Failure to Maintain or Upgrade - Some landlords fail to put money back into their properties. Adequate and timely maintenance protects your investment, avoids more costly emergency repairs and additional damage, and reduces tenant and governmental actions related to habitability. Upgrades allow higher rents, attract better tenants, and increase property value.

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