As an Arlington property owner, you have to take care of several aspects of rental management, right from tenant screening, lease creation, and inspection, to maintenance, insurance, taxes, and accounting, among others. It is natural to feel overwhelmed while managing all these responsibilities, which can lead to you making small but critical mistakes.
In our experience, here are some of the common mistakes that first-time investors often make while renting out their Arlington property.
1.
Not Screening Tenants Properly
Tenant screening is the most essential step while renting out your property. Many landlords are satisfied with a basic background check, trusting that the applicant has answered truthfully. However, while we admire this confidence, we recommend that you thoroughly screen your applicants before finalizing one. Check their credit history, verify their current place of employment, as for original identity proofs and crime history, and get references from previous landlords.
Make an unbiased assessment of whether the applicant fits all your criteria and then proceed to shortlist potential tenants. If you do not have the time to screen your tenants,
get a property management company to do it, but do not skip the process or rush through it hurriedly. It is not worth skipping background checks while hiring your potential tenants.
2.
Not Drafting a Comprehensive Lease Agreement
A detailed lease agreement is your foundation for building a good landlord-tenant relationship and it is necessary that it be strong one. In the rental business, you cannot rely on handshakes or oral agreements. It is crucial to frame a standard lease agreement and get it signed from your tenants to ensure that they understand all the terms therein. Not only does it set expectations from the tenant, but it also protects your property in case of future conflict.
Include all the details, such as the name of all occupants, primary and secondary contact numbers, the detailed property address, start and end/renewal date of the tenancy, and other policies regarding, pets, smoking, noise, guests, and more. Mention clear and straightforward rules regarding inspections, tenant responsibilities, and security deposits.
Consult a property management company like Arlington Realty, for advice on how to create a comprehensive lease agreement.
3.
Not Getting Property Insurance
Landlords often skip getting property insurance to save a few bucks; however, this can ultimately result in significant financial losses. In Arlington, you are required to have the right type of insurance which will protect your rental property from natural hazards, significant damage, injuries, and other situations.
It is necessary to consider different types of insurance to find the one that meets your property requirements. Landlord’s Liability insurance is one of the best options to protect yourself from lawsuits filed by tenants.
4. Not Conducting Regular Inspections
Move-in and move-out inspections are necessary to track the changes that occur during the tenancy. Similarly, regular inspections help you to identify and prevent significant damage and maintain the value of your property. Not conducting timely inspections can result in undetected damages that may later cost you a heavy penny.
Make sure you inspect the property regularly. Observe the condition thoroughly and document the changes after the tenants move out. You can click photos, record videos, and take notes to identify the difference between normal wear and intentional damage. Also, check the appliances, utilities, and plumbing to make sure that they are functioning smoothly.
5. Avoiding Addressing Tenant Complaints
