Landlord mistakes in Denver, CO can be costly and time-consuming. Property owners who manage on their own seem to make the same five mistakes repeatedly. These are the things you want to avoid.
Poor Tenant Screening
It’s a huge mistake not to screen your tenants. Anyone who is 18 years or older should be required to fill out an application and be subject to a thorough background check. Most screening companies will charge up to $50 per applicant, so make sure you require tenants to pay an application fee when they want to live in your home. Don’t skip the screening process.
Establishing Income Criteria
Sometimes, landlords will be satisfied that a prospective tenant has a job, but you want to look closely at incomes. Ask for documentation of income such as pay stubs or tax forms. Find out how often they are paid and how much they earn. You’ll need this information so you can be sure that rent will be paid on time.
Checking Rental History
When you’re talking to landlord references, you want to find out what kind of tenant this person was previously. It’s also important to ask the tenant why he or she is moving. If the tenant is vague, keep pressing for a reasonable answer.
Pricing Your Property
Pricing your home too high will cause a longer vacancy, and pricing a home too low will reduce the cash flow and ROI you earn on your home. Look at the other homes for rent in your neighborhood, and compare your house to those. Establish a rent that’s within the fair market value, and prepare to be flexible. To attract the best tenants, you need a competitive rental price.
Fair Housing Violations
It’s easy to violate fair housing laws when you don’t know them. Make sure you understand and follow all fair housing laws so you cannot be accused of discrimination.
A lot of mistakes are made by landlords, but these five are the most common and costly errors. For more information, contact Alborz Real Estate.