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Tuesday, 03 May 2022 15:50

Mistakes to Avoid as a Rental Property Owner

Asheville, NC, is experiencing a rental boom, and now is the time to put your property on the rental market. With the influx of adventure lovers, craft beer and wine enthusiasts, and art fanatics, people are willing to pay top dollar to live in our wonderful city. 

However, while it may seem to be a piece of cake to be a landlord, it requires lots of work and a solid business mindset. Making sure that you are making enough ROI on your property while maintaining a solid relationship with your tenants is the key to success. 

With all of that said, there are a lot of mistakes that can be made as a landlord, and these common mistakes can often be avoided.


Mistakes You Can Avoid as a Property Owner

1. Having Unrealistic Expectations About a Property

There are a few properties that look like the ideal rental property. These properties may not be desirable parts of town. A single rental property isn’t going to make you a millionaire. Sometimes there are gaps between renters. 

Regardless you still have to keep up with the mortgage and maintain the house. Understanding what is realistic, and planning for the “dry” periods, is very important and can keep you from potential foreclosure and financial ruin.

A good cash flow analysis is an essential step before purchasing a property to rent. Suppose the property has been used as a rental property beforehand. In that case, there should be plenty of data to inspect to have an idea about what the property can be worth over time. 

2. Underestimating Overhead and Cost of Repairs

One of the realities of being a landlord is the fact that your property will inevitably need repairs. Before closing on a property, it is important to know as much about the shape of the house as possible. Does the roof need replacing? Are there ongoing plumbing issues that have not been resolved? 

While many repairs are one-time deals, they can be very expensive, especially considering that there is the cost of maintaining the property as well. Make sure that you have an idea of the yearly costs of maintaining your property so that you can adequately price rent. If you find yourself not charging enough, you could find yourself paying for things out of pocket. 

3. Having a “Loose” Rental Agreement

So what if you are renting to friends and family? It is important to have a rock-solid agreement that outlines the expectations over the term of a lease. When expectations are not set in writing, it can be hard to hold residents to the rules that you have set.

Setting expectations is incredibly important. Consider working with a property management company, or at least hunt down a solid template to fill out with your expectations. This will not only give you a leg to stand on when holding renters accountable but also help build a solid relationship with tenants.

4. Overlooking Your Tenants

Being a landlord is essentially owning a business, and with a business, you MUST have good customer service. Otherwise, it's highly unlikely that you will attract good tenants, let alone hold on to the tenants that you have. When you overlook your tenants and the condition of the property, you could easily miss things that could be extremely detrimental to your rental business. 

Building a quality relationship with your tenants while paying attention to your property can look like a lot of things. A quality product will pay dividends long term, and making sure that you pay attention to the needs of your tenants and property is a good sign of quality customer service.

5. Not Keeping Proper Documentation.

IF you don’t write it down, it doesn’t exist. We all have busy lives, and it is easy to forget to make a note or document an issue with your rental. However, in the event that you need to take a tenant to court, it is important to have proper documentation so that your case has a chance. 

It may seem excessive, but taking note of phone conversations, and saving emails, voicemails, and text messages, may be able to help support you in the event of a lawsuit.

These are just a few common mistakes to avoid as a rental property owner in Asheville, NC. Hiring a skilled property management company is critical to increasing ROI and guaranteeing the well-being of your properties. Asheville Phoenix Properties is the area's leading property management firm.

When you work with Asheville Phoenix Properties, you are partnering with a company that has decades of expert property management experience on your side.

By managing single-family and multi-family dwellings throughout Buncombe, Henderson, and Haywood counties, Asheville Phoenix Properties takes great delight in serving both property owners and tenants. Contact Asheville Phoenix Properties right away!