Major Mistakes of New Landlords

[jwilbrin]

QUOTE (thomasbeyer2000 @ Jun 15 2009, 10:02 AM) #19 Not decreasing rents when the average rental price in your area is decreasing, supply is increasing, job growth is negative, or in-migration is slowing.

#20 Drastically reducing the security deposit below the monthly rental rate to attract renters -- Big Mistake. If you are in a province that allows the collection of a security deposit -- Collect the security deposit and make sure it is equal to one months rent. Advertising a reduced security deposit will just waste your time as it will attract the attention of "undesireable" renters looking for cheap move in costs.

 

[GarthChapman]

21. Not collecting the Security Deposit before the Tenants move in.

22. Not applying a partial advance payment made by a new tenant before they move in to the rent and instead to the Security Deposit. If the Tenant does not move in you must return the Security Deposit but you may keep the rent paid (at least in Alberta).

 

[gregg]

Great stream. I am sure we can all take nuggets of information away from this one. Thomas is correct when he says that giving out your personal phone numbers is a mistake (big, big time waster). One way my wife and I get around that is to have a phone line that doesn`t ring but takes messages which we check throughout the day.

Our policy is to respond to the request within two hours of hearing it and to fix the problem within 48 hours depending on the severity. For example if it is a plumbing or leaking problem, electrical problem, they do have our maintenance person`s home number and are instructed not to call unless it is an emergency. He will let them know in no uncertain terms if they have called him inappropriately. He has been with us for almost two years, very loyal and has taken ownership with our properties and we have complete trust in him. He usually contacts us before taking action but only after he has determined that the call is indeed an emergency.

Gregg Miller