All business owners make mistakes when it comes to their companies, and landlords make a few that are all too common. From being too lenient and lax with rent to not conducting thorough checks on their tenants, here are the four most common mistakes to steer clear of:
- Lax background checks on tenants. Making sure a potential tenant is qualified is one of the most important steps a landlord can take. Failure to conduct a thorough background check can cause lots of problems down the road, especially if the landlord decides to rent to a tenant who has had renting troubles in the past. Always be sure to check the tenant’s credit history, rental history, criminal history (for risk of violence or other felonies), and if they have ever been evicted before. Houserie.com can help landlords conduct all of these background checks in a fast, easy, and secure manner.
- Failure or leniency with collecting rent. Any successful business owner will tell you that to continue being successful, you have to get paid. Landlords need to collect rent as their source of income, and failure to keep up on rent collection is just not a good business practice. Have a rule set in place that the tenant will have a late fee if they don’t pay by a certain date.
- Not evicting a tenant when needed. If you have a tenant who is always late with their payments or who violates the terms in any other way, you need to evict them. Don’t put it off just because you don’t want to deal with an unhappy or angry tenant.
- Handling business accounting by yourself. If you’re not good at math, don’t attempt to handle your business accounting and expenses yourself; instead, hire a competent accountant or CPA to deal with this for you, and you can concentrate on other aspects of your landlord duties.