3 Costly Mistakes Every Rental Property Owner Must Avoid
If you are a brand new Rental property owners, then you must read this. In this article I will share 3 major mistake new rental property owners should avoid making them.
I also I did it, and added these mistake to my experience now. Here I’m sharing those mistake so you can learn from my mistake and avoid doing yourself.
Every owners wish to give their rental property for rent as fast as possible. No one likes to keep their property empty for longer duration as they will be loosing the Rent.
So, what they do is, they don’t properly verify the Tenant and give them rent without even accepting the deposit listening to the tenant story.
This is one of the biggest mistake we have done in our past land lording experience.
We learned our mistake really hard way. Don’t make similar mistake. Below are 3 important mistake you should avoid as a rental property owner.
1) Never ever listen to Tenant story.
2) Never give room key without taking full Advance amount and
3) Make sure Tenant can easily afford the Rent (their earnings should be more than 3 times the rent)
Never ever ignore above rules at any moment. If you ignore, you are the one who is going to suffer.
You loose Money + Peace as well while dealing with those Tenants in future if any issues happen. Which usually going to happen if you ignore the above.
Let me share my own real life experience.
When we started giving rent first time, we have very less knowledge about all these things.
One family came asking rent. They are also from our village side itself. When they came they told they will give 5K advance now and rest we will give by month end as we have spent all the money on some operation.
That time our goal was to give rent as fast as we can.
We didn’t verify his income source, didn’t collected full Advance, and listed to all the story he told.
Everything going smoothly till 1st month end. When it’s time to give rent and balance Advance Amount they started telling stories.
Story continued for 2nd month also…
From 2nd month onwards we never saw the guy face itself. He is a cab driver. When pending balance & pressure increases, he stopped coming to the home itself.
Only His wife will be there in the home. When we ask her pending amount she also started telling his husband went to long trip once he come he will give kind of stories.
After 2nd month end, when pressure increase his wife locked the house and went somewhere. We couldn’t able to reach both of them.
Advance Pending
2 months Rent Pending
They locked the room and gone somewhere.
Same thing continues for 2 more months. We have no clue where they are, how they are… Pending rent keeps increasing. All their stuff still inside the room. We don’t know what we need to do know.
We waited 2 months without any updates from them.
One day his wife came. After lots of arguments, she decided to look for another property. Her husband didn’t came till now.
Luckily she got another rental property and decided to move immediately from our house.
As she didn’t clear any pending balance, we kept some items and allowed her to move.
The new owner who gave her house listening to her fake stories will also go through similar situation within few months.
All these issue happened because of ignoring/not knowing those 3 important points. Now we have enough experience. We No longer ignore or break those Rules ever again.
Hope you do the same.