Common Landlord Pitfalls (& What To Do About Them)

It may seem as if owning property and leasing it out to others is one of the easiest ways to make money there. However, nothing could be further from the truth. In fact, being a landlord comes with a whole host of challenges, with some making the difference between success and failure. With that in mind, check out the most common pitfalls landlords encounter, and what to do about them below. 

Not creating an inventory before you lease.

One major issue that landlords can run across is not creating a comprehensive inventory before they lease to a client. An inventory is a long list of every item and features in the home before tenants move in. It should also state the condition of these items and features with photographic evidence, if possible. 

The idea is that this list can then be used as a starting point when your tenant moves out. Thus providing you the landlord with something to compare the current state of your property with. In fact, a comprehensive inventory can serve many useful purposes, including identifying any changes that have been made and establishing the original state of the property. The latter being important when repairs or deep cleaning needs to be done. 

To that end, if you want to make the moving out transition as easy as possible, taking the time to create a clear and detailed inventory is vital.

Not correctly managing and maintaining your property.

Unfortunately, one of the biggest pitfalls that landlords encounter is that they do not manage and maintain their property correctly. This is usually because it is one of the most time and effort-intensive tasks related to leasing homes. Something that can make it very difficult to keep up with, especially if you have multiple properties or other responsibilities. 

The good news is that there is a simple way to keep up with your rental real estate management and maintenance. It's to employ a management service like Revid to deal with it for you. In fact, for a reasonable fee, you can have your management service deal with all sorts of issues, such as finding tenants and collecting payments. The best management agencies will even deal with the maintenance that needs to be completed on your property. Something that means you can ensure everything gets done, but with minimum effort on your part. 

Not having the right insurance. 

Finally, many people counter a significant pitfall by not investing in the right insurance for their rental real estate. The policy that is needed as a landlord is totally different from the one required if you owned or lived in the property yourself. This is because it covers additional issues, such as tenant damage, accident, and harm. 

Unfortunately, if you don't have the correct insurance and something does happen, you will be significantly out of pocket. You, as the landlord, may even face legal proceedings and prosecution. To that end, it is vital to investigate the insurance you will need and avoid this pitfall at all costs.