Buying a property, renovating, and renting out to tenants may not sound too difficult, but a landlord's job doesn't stop here...
It’s not always plain sailing, it takes knowledge and experience to operate successfully. However, by avoiding these four common mistakes, your life as a landlord will be a lot easier!
Here are the most common mistakes landlords make –
1.Failing to complete a detailed inventory
Conducting a full inventory before your tenant moves in will help avoid any discrepancies when the tenancy comes to an end. Make a list of the furniture, note its condition and take detailed pictures.
2. Assuming your property will always be rented
Before you commit to a mortgage on the property, make sure you can cover your monthly payments. Don’t rely solely on income from tenants as rental properties can remain vacant for periods of time. Carry out a cash flow analysis to avoid running into financial issues.
3. Conducting inadequate tenant checks
You may be eager to secure a tenant, but don’t rush the background checks. You want to make sure they will pay their rent on time and look after your property. Obtain personal references and check credit history to spot a potentially unreliable tenant.
4. Underestimating repair costs
A broken boiler or a leaky pipe can be a costly fix, and tenants will expect them to be dealt with quickly. Make sure you keep some money aside to help cover unexpected repair costs.