Biggest Landlording Mistakes that will Cost you Time & Money!
Our educational system teaches us to find 9-5 jobs and to work there until retirement. It prepares us with the basic needs we may have and college these days is almost mandatory for entry level positions. Or it's questionable if they really even prepare us properly!
But, there is a better way!
If you are reading this, its because you KNOW there has got to be another option. You probably also know that job sponsored retirement plans may not be enough alone for your golden years. Now, if you are like me, you also don't even want to work until you are 65...or 70+ to be able to retire. So what do we do?
Well, you can enjoy your Life NOW!
When I started purchasing rental properties, I saw the doors it opened for families financially. No more counting hours of PTO to use for your vacation. No more living paycheck to paycheck. No more thinking about your chair sweater over at the office. And the freedom that it allows for you to live out your passion and your purpose rather than just working away to further someone else's cause.
Purchasing Rental Properties is an Entrepreneurial Pursuit. And it comes with a learning curve that we must overcome. By being a member of Lady Landlords, you are already taking the first step to connect with others in a similar situation. But, we must be constantly learning and improving our skills and processes.
Hopefully, these 3 mistakes I see other Landlords make will help you.
1. Lack of Legal Knowledge:
Discrimination, wrongful practices and a disregard for standards set locally and Federally can get you into hot water. Fines and even jail time are on the table when you don't know you laws. Now, you don't need to have a law degree to stay on top of what is happening in your state. But, you do have to put in the effort and time to learn. Just like any other business, it's important to stay up to date on trends and modify how you run your business accordingly. Need help staying up to date on local laws? Get your State Specific legal documents here!
2. No Set Rental Criteria:
Often, I get messages from members asking if they should accept a tenant with this credit score or that income. My first thought is, "No, No. No!" By not having your rental criteria set BEFORE you post an ad for a vacancy, you are doing yourself a disservice. You are leaving yourself open for a Fair Housing complaint and/or a lawsuit. At the minimum, you will have a headache that you could've avoided. Make sure to set your standards first to know when you can accept a qualified tenant or need to pass on them.
3. The Miseducation Disadvantage:
When we come from an uneducated place, we lose all footing and leverage when it comes to negotiating or communicating with our tenants. Now, when requests are made or situations arise, you are not in a position to navigate it correctly. With each wrong decision, you liability snowballs and you will find yourself in a position of weakness. This will hurt your relationship with your tenant and your bottom line cash flow.
Don't let this happen to you!