How to Screw Up your Landlord Business

Being a successful Landlord requires a lot of practical know-how from all aspects, from property maintenance, tax implications, tenant relations etc. So how do landlords destroy their businesses?

It's very easy unfortunately.

Using outdated forms and contracts:

Most landlords know that they need to use a lease or agreement, but using the wrong one can get you in trouble. Make sure you use the right form for your rental, otherwise you might find yourself in a situation where are on the losing end of a legal battle.

Discriminating

We all know that you have to be careful to not ask discriminatory questions when interviewing for a position in the workplace. The same applies when you are looking for tenants. You need to make sure that you know which questions you can and can't ask. If you ask the wrong questions and the applicant didn't get the property, they may have ammunition against you.

Making promises

Can you really fulfill your promises? Can you guarantee a new paint job and a pool in the back yard by the end of the month? If not and those promises were the deciding factor in a tenant signing the lease…. watch out.

Fees

You want your tenant to pay their rent on time, every time and fees can motivate tenants to do just that. But, you can't randomly say 'You owe me an extra $1000 because you didn't pay your rent on time.' It has to be fair,  legal and in writing if you are going to charge fees.

Rights to Privacy

No you can't just drop in any time you feel like it, even though you own the property! This is the tenant's home, even though it's your property. You need to make an appointment with your tenants before you enter the property. Make sure you know how much advance warning you need to give, 48 hours is standard in most places.

Nope, you can't use the bond to add on a bedroom.

The bond that the tenant pays in the beginning is strictly for use on repairs and cleaning - beyond normal wear and tear. You cannot use it to put in a new bathroom or buy new appliances!

Ignoring the obvious

Is your property in good shape? Is it safe? Does it meet health and safety standards? Here's a question to ask yourself "Would you live there?" Lets ignore that it's an investment and pretend that you are a tenant, would you live in this property? If not, then why? Do you need to fix something?

If the property isn't in good condition, finding tenants is going to be difficult and you could be breaching health and safety rules.

These are important areas to consider and if you don't, you are at risk of losing your business, so make sure you know what you are doing. If you don't have the time or inclination to do a good job you can always employ a property manager and pretty much all these headaches would go away.