Many people love being landlords because it provides freedom and the ability to be your own boss. There are so many things you should do when you are renting out to help you succeed as a landlord, as listed by us here, but there are also several things you should avoid if you want to prosper.
Choosing the wrong tenant can cause you extreme stress, not to mention legal issues. Not paying attention to your budget might leave you owing money instead of making it, and forgetting to keep copies of important documents or failing to pay attention to the legalities of renting out properties can lead to legal trouble. The costs of being a landlord can leave some people bankrupt. If you have the start-up capital to become a landlord or if you are already an established landlord, you can help stay away from serious problems by avoiding these six items.
1. Not pay attention to legal requirements
If you are building a rental property from scratch, you will have to deal with building permits. If you don’t complete the permit process, you will face fines as well as possible jail time. You also may need a new renter’s permit, and if you purchase an existing rental property, you will need to notify the city that there has been a change in ownership. You will also need to prove that the rental unit is safe and meets fire codes. You also may need to prove that your rental has structural stability, safe wiring, proper lighting, appropriate ventilation, adequate heating and cooling, and a sanitary living area.