1. Failing to Ask for a Bond
This is a security deposit held in case your tenant doesn’t meet their obligations under the lease agreement.
2. Not Having a Lease Agreement
This is a legally enforceable contract that details the length of the lease, rent amount, and the condition the tenant should leave the property as stated in the condition report.Typically if you are managing a rental property on your own, you may only have the option of purchasing a generic lease agreement from your local news agency or online. The problem with these generic forms is the lack of important information, like state and territory laws particular to your area. We have free state specific templates for you right here.
3. Not Filling in a Condition Report
This document describes the standards in which the condition of the property should be left at the end of tenancy compared to the condition of the property at the beginning of tenancy. For instance if the carpet has stains or if repairs are needed to bring the property up to the condition was reported at the beginning of the tenancy.
4. Not Understanding Tenancy Laws
If a property owner doesn't comply with these laws, like entering the occupied property without giving the tenant proper notice, this can lead to unwanted fines and unhappy tenants.
5. Not Doing Proper Checks on Tenant Applications
As a property owner, when conducting a background check, make sure to speak with the potential tenant’s former property owner in regards to the condition the tenant left their previous property, if rent was paid on time, and the magic question - “would you rent to them again?”
To avoid these downfalls while managing your rental property, take a look at all the resources and information we have for Landlords right here.