6 Common Mistakes To Avoid When Managing Your Rental Property
Managing a rental property in Las Vegas takes work, especially if you’re not used to being a landlord. Many mistakes can be made on your way to building up a successful rental business. Luckily for you, this article is going to cover some of the most common mistakes landlords make when running a rental property so that you can avoid them on your journey from renter to landlord.
A Little Flexibility in The Lease Process
You should definitely respect the laws in your area when dealing with tenants. If you’re not sure what the laws are, or you’re not trusting yourself enough with the process of managing, then you should know that there are a variety of property management services in Las Vegas that can be hired to help you. These agencies will know about what you can or cannot do in your area, so it’s a good idea to get in touch with them if you are uncertain, or if you simply don’t have the time to do it.
However, this doesn’t mean your lease should be a completely rigid document. The last thing you want is a tenant who feels so badly treated that they break their agreement and runoff, leaving you with an empty house right when you need it most.
By being overly strict in your interpretation of the contract, or by enforcing rules right at the edge of what’s legal, you may cause your tenants to leave before their lease is up.
Treating Your Rental Like a Money Pit
The first common mistake new landlords make is trying to save every penny of the rental income they receive for themselves. This might not be an issue if you are using your property as a primary residence, but it can quickly turn into trouble if you’re renting out the property to tenants.
This mistake can also backfire by hurting your relationship with your tenants. They need to understand that they are paying for access to the home they live in; not merely for a roof over their heads. It’s in their best interest to keep your property in good shape, and they’re going to be more likely to do that if you explain that it’s a business transaction.
Your job is to set and maintain the standards for your tenants, while also ensuring they can afford to keep living there.
Not Treating Your Property Like a Business
Your business may be renting out homes, but that doesn’t mean your rental property should be treated as though it’s run-of-the-mill. You need to treat your business like a business and it should be run as such: with hard work, innovation, and good communication with your tenants.
If you do the bare minimum, don’t budget effectively, or make smart business decisions, not only are you going to face problems but so will your tenants.
Not Negotiating Your Lease Terms
A lease is an agreement between the landlord and tenant that puts down in writing what they both agree upon regarding terms of residency. There should be an agreement on the amount of rent, when it is due, how often it can be raised, and the length of the lease.
You should always include a clause that explains what happens if either party breaks the terms of their lease. This isn’t to say you should expect your tenants to break it, but you don’t want to be caught off guard if that happens.
Creating Unreasonable Rules
Let’s make something clear: some rules need to be in place for both the benefit of the tenants and the landlord. However, these rules should also fit into what is reasonable – such as by not taking away their access to any common areas or restricting their use of the home.
Being too strict in the rules you create can lead to your tenants feeling uncomfortable, which may increase your odds of them breaking their lease before it’s up. This will cost you money when you need it most, and it can also hurt your long-term business.
Not Putting Everything in Writing
When you are dealing with a tenant, it’s important to have everything in writing. Not only does this protect you both financially, but it can also help prevent no-fault evictions or misunderstandings that could cause serious problems.
While some states don’t require written agreements between landlords and tenants (but not in Nevada), if you are getting one, don’t take it lightly. Keep an up-to-date copy of the agreement on file so there is no confusion about what was agreed to between you and the tenant.
Mistakes can be costly when it comes to managing your rental property – both in terms of time and money. By avoiding the common mistakes listed above, you’ll be on the right track to a successful and stress-free experience as a landlord.