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Most landlords make mistakes. Although most of those mistakes are minor and result in no long-term problems, many are potentially serious and some can be financially fatal. We’re talking about mistakes that can result in (1) significant reduction in revenues, (2) greatly increased expenses, and (3) lawsuits and/or fines. Some mistakes only cost a month or two of rent. Other mistakes can potentially cost (1) many thousands of dollars, (2) loss of a property, or (3) even one’s entire net worth.
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Fortunately, most landlords do not have to pay for most of their mistakes. This is for a number of reasons, including the fact that most applicants and tenants don’t recognize the mistakes and if they do, they choose to ignore them. The thing in common about all of the mistakes is that they could have easily been avoided.
Inadequate Move-In/Out Procedures – Many landlords fail to follow adequate procedures for moving tenants in and out. They use inadequate or even no move-in and/or move-out checklists. Furthermore, some fail to follow the laws related to possession and disposal of abandoned property.
Delaying Action – Landlords often delay taking action against tenants when they fail to pay rent on time or otherwise default on their leases or when they cause problems for other tenants. Failure to evict when appropriate often results in losses that far exceed the cost of an eviction.
Failure to Maintain Records – Many landlords fail to document operations as well as they should, keep the records as long as necessary, and/or properly dispose of sensitive information of applicants and tenants. Proper disposal of personal and financial information is important to protect their privacy and to reduce risks of fraud and identity theft. Security and disposal procedures are specified by law.
Detailed discussions of the above and a number of other issues are provided in various of our eCourses and in our Mini Training Guides, most specifically in our “9 Common Landlord Mistakes” Mini Training Guide.
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