It is common sense that if you are managing rental properties, you know some of the basic rental rules. Even then, of course, it is always possible that mistakes can be committed. After all, Landlords are only humans.
The following are some of the biggest mistakes that Landlords commit:
Not Securing Deposits
You could be thinking that securing deposit is very basic and every Landlord should know this. The sad fact is that there are some Landlords who do fail to do this simple and practical task. Securing the deposit within the 30 days allocated time – from the minute it has been received – is very important. Failure to do so could mean trouble for the Landlord. If the Tenant finds out that their deposit has not been placed into TDS (Tenancy deposit scheme), they can prosecute their Landlord for three times the amount of the deposit. That would mean a big loss for the Landlord.
Using a Non-Regulated Letting Agent
This is quite important. There are letting agents operating with no TPO membership, meaning they are not regulated. It is important to understand that if you are a Landlord and you need to use a letting agent, you are secured with reputable and regulated letting agents.
Skimming through contracts
It is never advisable to skim through contracts. It can be tiring to read contracts, but they are created for specific reasons. One of them is to provide security and protection for all parties involved. It is important to know that if you missed out a single line in the contract and you just sign it without full understanding of what’s involved, you could end up losing money or in jail. Negligence has a price, and sadly, it is always a high price. In the property rental business, it is essential that Landlords read through the letting agent contracts thoroughly. Most of these contracts are filled with fees and penalties, so be very careful before signing anything.
Providing Long-Term Contracts for New Tenants
One good piece of advice is to offer short-term contracts for new Tenants. This is the best for both parties. Why use a long-term contract for people you are just starting to negotiate with? A long-term contract can be used if the new Tenant proves to be a good one.
Not Doing Property Inventories
One of the most common mistakes Landlords make is skipping the property inventory process. If you let a new Tenant into a space that you have not properly checked out, you would be putting your business at risk. The new Tenant can always complain about something not right in the apartment and there is no way for you to prove that they may have done the damage themselves because you have no idea how the place looked before the Tenant moved in.
Not Doing Regular Property Inspections
This is a bit similar to the one above. Landlords should always inspect the property on a regular basis. This process can prevent a lot of stress and hazards. It can also help the landlord identify problems in the rental property, which could mean solving them before they become too much to handle.
Aside from these mistakes landlords typically commit, there are several others that could fall into the category. The important thing is for the Landlord to know the basic rules and from there, hopefully, mistakes can be effectively avoided.
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