Making a living out of renting properties has become an increasingly popular method of living. This method of passive income has many perks to it – especially the fact that you won’t be really working or anything. However, it is by no means easy to do, and there are many mistakes you have to avoid to ensure you gain a substantial income. Below are some common mistakes landlords and managers of rented properties tend to commit:
• Not taking care of your property – this is the most common mistake, and the most stupid at that. As a person who lives off the income you receive from renting out your properties, the obvious you should be doing is taking care of your properties properly. This includes ensuring they are clean and properly maintained – regardless of whether they are empty or occupied at the moment – and taking steps to ensure that they are properly cleaned before a tenant moves in or after one moves out. If you have hired a rental property manager to look after your properties, then make sure he or she does the proper maintenance of your properties in your stead. Have a peek at this website if you are looking for qualified rental property manager.
• Not carrying out background checks on the prospective tenants – another common mistake landlords and property managers commit is not running proper background checks on tenants who apply for renting a property. Just as you won’t see banks easily yield into giving loans for just about anybody without checking their backgrounds, you should do the same for any possible future tenants. Make sure to check their credit history and whether they are capable of paying the rent without being late on a monthly basis.
• Not conducting annual inspections – if you’re expecting tenants to take care of your property just as well as you do, then you’re very, very wrong. And because the case is such, conducting regular inspections of your Wellington rental properties on an annual basis (at least) is a must for any landlord. You have to know and keep in mind that there are tenants who willingly remove batteries from the smoke alarms, as well as those who do not replace the filters of their air conditioners or heaters regularly – these will be the things you will be inspecting on your annual visits.
• Entering rented properties without a notice/reason – going by the above point, you have to conduct regular inspections, no doubt. However, this does not mean that you can barge into your properties without prior notice simply to catch your tenants having not replaced filters and the like! Contrary to this, you will have to know that under the law (which changes from state to state), the landlord or manager is required to give out prior notices (usually of twenty-four hours) before visiting the rented properties.