November 08, 2018 at 4:12 PM

 

 

 

It is not uncommon for new landlords to make rookie mistakes. In the hope of avoiding the cost of paying for the services of a professional property management company many choose to find and manage their own tenants. Some landlords will succeed, but more often than not, others fall into a number of common traps.

For most DIY landlords, managing properties is not a full-time job, so it's easy to rush through important steps just to check another task off your to-do list.

Rushing important steps like tenant screening may not seem like a big deal, but you could end up renting your property to someone who never pays rent and causes thousands of dollars in damage. Avoiding these common landlord mistakes might keep you from worrying about expensive and stressful problems.

 

#1. Failing to screen tenants properly

Bad tenants often target private landlords who might not do the same rigorous vetting checks as a good property manager. More often than not thorough checks on references are not completed and written references are accepted without follow up or further investogation. It is vital to get references from thos who are not friends and family of the prospective tenant.

Private landlords do not have access to services that offer a range of checks on tenants including credit checks which give you a more comprehensive picture of a prospective tenant.

#2. Failing to carry out inspections

For most, a rental property will be one of your largest assets and you are handing this over to strangers. More often than not landlords do not complete regular inspections, which puts both the home and insurance in jeopardy.

We often hear of landlords failing to complete regular routine property inspections because they are time consuming and they also do not want to disturb their tenants. By doing this landlords expose themselves to risk because if it comes to a Tenancy Tribunal claim and evidence cannot be shown that regular inspections have been completed, they may lose and their insurance may also decline the claim based on not meeting their landlord obligations.

 

#3. Failing to understand tenancy law

Failing to understand tenancy law gets newbies in trouble with the Tenancy Tribunal. You need to get a good working knowledge of the Residential Tenancies Act 1986 (RTA) and to follow the letter of the law. New and inexperienced landlords make many mistakes such as turning up at the property unannounced, increasing the rent whenever they feel like it or a host of other mistakes.

 

#4. Letting illegal dwellings

Inexperienced landlords may be tempted to rent out an illegally converted garage, basement or other building as a tenancy which is a big risk. Tenants know their rights and the Tenancy Tribunal can and sometimes order landlords to repay the rent to tenants who have found themselves living in an unconsented dwelling. It is also likely that the landlords may also be breaching the terms of their insurance cover by letting these properties.

 

 

#5. Taking it all too personally

Property investment is a business and tenants are your clients. Landlords that are new to renting may let their former homes to tenants and then get upset at what in reality is reasonable wear and tear. There is a difference between damage and reasonable wear and tear and this is allowed under the RTA.

 

#6. Failing to maintain the property

Inexperienced landlords can be tempted to ignore requests from tenants for work to be done. This can degrades the property and also sour the relationship with the tenants. It’s important to complete maintenance work promptly to show that you value your investment and therefore your tenants will also.

 

Inexperienced landlords can become professionals by educating themselves and staying on top of the legislation changes. If you do not have the time to manage your own investment property and prefer to leave it in the hands of a professional then call Angela today on 022 018 4652.