Avoid Rental Property Owner Mistakes


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Real estate investors who enter the rental property field often believe that the pursuit is relatively easy and it can be, but those who make mistakes often end up shooting themselves in the foot.  Rental property owner mistakes include incorrectly screening tenants, underestimating maintenance costs, not taking the time to understand the fair housing laws, and neglecting service requests from tenants.  The rental property owners who want to earn the most on their investment should take care of these main issues.

One of the most crucial rental property owner mistakes has to do with improper tenant screening.  The investors who are able to earn the greatest cash flow make sure that their properties are full of tenants who regularly pay their rent on time.  Since rental rates are the only source of positive cash flow, investors have to make sure that they have performed the mandatory tenant screening process with diligence.  Decide on what constitutes an acceptable tenant and put each potential tenant through a test in order to determine worthiness.

Two other common rental property owner mistakes include underestimating maintenance costs and neglecting service requests.  In general, maintenance always costs more than planned and since it is such a crucial part of the success of a rental property, it should be attended to first.  Investors should consult with others in the field when determining the cost for maintenance, as a real world estimate is of great importance.  Ideally, investors should have a fund set aside to handle emergency maintenance issues and continue to add to this fund during profitable months.

Since tenants expect that an investor is accountable to them, any service requests should be handled immediately.  Not only does this make an investor look good, but also, taking care of problems the moment they start is necessary in order to prevent large issues.  The investors who show tenants that they are valuable are likely to keep them for a longer period of time and give them a reason to keep paying their rent.

Investors who are serious about their investment need to understand the laws associated with it and should start with the fair housing act before all others.  The investors who are able to handle their business without getting involved in frivolous lawsuits are going to earn more cash flow and have fewer problems.  The investors who abide by the fair housing act should have no problem staying on the course.

Those who are able to avoid rental property owner mistakes should be able to earn a solid income on their investment.

Asking questions with these tips in mind will help save real estate investors thousands.  For more ideas related to real estate investing, call or visit us a Homevestorsfranchise.com.  We are the nation’s number one home buying franchise with over 15 years of experience.  Our company has a vast assortment of real estate investment and real estate franchise opportunities available to help you grow your real estate business.  Come see us for more information.

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