Whether you’ve inherited a property, bought one as an investment, or became an accidental landlord, the journey can be rewarding or financially draining, depending on how well you navigate common landlord mistakes. Here, we outline the top 10 pitfalls for landlords and property managers and how to avoid them:
- Ignoring fair housing laws
Before you start renting, familiarize yourself with fair housing and anti-discrimination laws to ensure equal access to housing. Avoid targeting specific groups or individuals and treat every applicant and tenant equally. - Overlooking your local market
Understand your property’s location and its appeal to potential tenants. Research local taxes, rental prices, and the neighborhood’s features to determine your potential return on investment and monthly rental income. - Failing at marketing your property
Highlight your property with high-quality photos and a well-written, accurate description. Consider using Zillow Rental Manager to reach a wider audience and capture a virtual tour of your property. - Skipping thorough tenant screening
Ensure a documented process for finding, screening, and securing tenants. Verify employment, residence history, and perform background checks and credit reports. Check landlord references and confirm timely rent payments. - Neglecting accurate leasing paperwork
Create a comprehensive lease that covers rules, policies, and conflict resolution procedures. Customize the lease to comply with local and state regulations, and have it reviewed by a legal professional. Definitely use the lease created by San Francisco Apartment Association (SFAA). TheSFPropertyManagement can help you implement the best lease agreement. - Forgetting your landlord responsibilities
Keep your property safe, healthy, and well-maintained. Stay in touch with tenants, respond to requests promptly, and manage taxes and financial reporting. Ignoring these responsibilities can lead to higher turnover, less rental income, or lawsuits. - Underestimating maintenance costs
Prepare for unoccupied periods and unexpected expenses. Conduct a cash flow analysis, establish a budget for unforeseen costs, and track expenses to maintain profitability. - Failing to hire a professional when needed
Know when to enlist the services of a professional property manager or contractor for significant improvements or repairs, especially if you lack the time or expertise. - Mismanaging your time
Recognize that managing a rental property requires a substantial time commitment. Ensure you have a network of people to rely on for support and maintain a healthy work-life balance. - Neglecting to treat your rental like a business
Approach your rental property as a business and income source. Keep a close eye on your finances, document procedures and communications, and adhere to established guidelines.
To minimize risks and become a successful landlord, hone skills in customer service, marketing, accounting, and home repair. Educate yourself, network with experienced landlords and professionals, and join associations to stay informed of changing rules and regulations.
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TheSFPropertyManagement is a full-service property management company that specializes in residential single-family and multi-family properties in the San Francisco Bay Area. If you are a tenant searching for an apartment, please contact TheSFPropertyManagement today at 415-712-0507 to discover the available options that best suit your needs. Similarly, if you are a homeowner seeking a property management company to take care of your property, kindly contact us for assistance.
