30 Oct 5 Blunders Made by Amateur Landlords in Texas
Novice landlords are so ambitious about renting away their properties, and they usually tend overlook essential aspects that just cannot be overlooked. The reality is fledgling Dallas landlords have to face many issues during their learning curve, so there is a dire need to eliminate these concerns.
Here we will take a look at some of the common mistakes that inexperienced landlords often make. One option a inexperienced landlord may consider is sell their DFW property as-is to a trusted real estate investment company like Big Texas Home Buyers, and save the headache.
- Inappropriate Record Tracking
The first-time property owners’ needs to be prepared for the fact that inevitably, they may have to appear in court due to troubled tenants. This means he/she needs to have all the documents and records pertaining to the case.
The property owner needs to keep track of all the essential variables; that includes important dates, rents etc. This is an important aspect of becoming a successful landlord. Having the ability to organize everything will help you from many unpleasant problems that may occur.
Furthermore, the landlord also needs to ensure the fact that the tenant has renter’s insurance, and these steps are necessary so that landlord does not face any issues later on. The owner should make sure that he will not tend to ignore such an important aspect of the business. Not simply finding the cheapest option may also be a good part of advice. Always require a deeper look at what each option offers compared to others.
- Taking a fantastic tenant for granted:
Simply put, a good tenant will more than likely treat the rental like their own home & take pride in it. The essential point is that the landlord needs to show cooperation towards a good tenant in order to stay in the property for a longer period. The new landlord must realize there is an opportunity cost involved when you have to prepare a unit for a new tenant. Everyone wins when you find renters that you would hate to replace.
- Effectively Screening Tenants:
Another common mistake first-time landlords do is they keep the tenants without screening their background. You would be shocked at the amount of criminal problems that arise, including identity fraud. For this reason, you are going to scrutinize tenants more.
Now, this is a serious issue that simply cannot be overlooked. The property owner has to ensure the simple fact that the tenant does not have an eviction history. It is also critical that the landlord should take credit reports from the renter at the time application. If the property owner lacks the ability to check out a tenant’s background on his own, then he should make sure that this individual hires a verified renter company to check the background.
A landlord should try and avoid any mistakes mentioned above, in order to facilitate a trusting professional relationship with the tenant. It’s always better to be safe than sorry, especially in this industry. You will find it much easier to rest at night realizing that you aren’t renting to an imposter, or potential credit risk.
- Failing to obtain advice from Other Landlords:
The most important concern with new property owners are the lack of experience, It’s essential that they seek advice from other landlords in the area. They need to constantly gain understanding from the people who are already experienced in this space, and this would help to solve any misconceptions a novice may have. You would be mortified at the number of pitfalls there are to this undertaking.
This industry is filled with nuances and small details that are too fine to be handled in a single briefing. As with any business, being a landlord should be taken serious. You will find that over time, what was once an intimidating exploit has become second nature.
- Not being cognizant of Fair housing laws:
Being conscience of the Fair Housing Laws in the state Texas is a must, if you plan to be a competent landlord. There are a myriad of violations you can trigger not being informed; especially if you should happen to encounter a savvy tenant that knows their rights. If you are unfamiliar with the law, it’s best to consult with a lawyer, or reputable property management service. They have the expertise when it comes to Fair Housing Laws. The last thing you want is a lawsuit that could’ve been avoided with prior information.
Being a landlord has its peak & valleys to say the least. It can be extremely profitable if done right, but a total disaster if you’re clueless. Along with these 5 mistakes, I can assure you there are hundreds more. If you’re skeptical about taking on this venture; Big Texas Home Buyers can make you a great cash offer for your property. After this fast & easy transaction, you can worry about where to deposit the check.