- Joined
- Aug 29, 2007
- Messages
- 2,042
I have been thinking of making a list of the most common mistakes new investors make when becoming Landlords. I have a few and others will hopefully add some more based on personal experiences.1) Overpaying up front. How many times have we heard Real Estate agents say "It Cash Flows".2) Not doing thorough tenant screening. Never trust any applicant.
3) Failure to operate your investment as a business. Not understanding expenses, allowing emotions to influence decisions, valuing your own time etc.
4) Failure to quickly respond to problems. As an example not issuing a eviction notice on day 2 every time a tenants rent is late.
5) Accepting excuses, partial payments, doing favors for tenants. This relates directly back to item #3. Always remember tenants do not feel sorry for landlords.
6) Failure to do, or relying on management companies to do, regular inspections.
3) Failure to operate your investment as a business. Not understanding expenses, allowing emotions to influence decisions, valuing your own time etc.
4) Failure to quickly respond to problems. As an example not issuing a eviction notice on day 2 every time a tenants rent is late.
5) Accepting excuses, partial payments, doing favors for tenants. This relates directly back to item #3. Always remember tenants do not feel sorry for landlords.
6) Failure to do, or relying on management companies to do, regular inspections.