302 Properties

Mistakes that New Landlords Make and What Not to Do

  • January 29, 2023
  • Property Manager
  • Category: LANDLORD TIPS

Becoming a landlord can be an exciting and profitable venture but also a minefield of mistakes and pitfalls. New landlords often make common mistakes that can lead to costly legal battles, unhappy tenants, and even property damage.

To avoid these mistakes and ensure a successful experience as a landlord, it’s essential to know what not to do. This article will dive deep into the most common mistakes new landlords make and provide actionable tips for avoiding them.

Whether a new landlord or a seasoned pro, this guide will help you navigate the complex world of property management and ensure you and your tenants are happy and prosperous. So, if you’re ready to become a landlord, read on and arm yourself with the knowledge you need to succeed.

Setting the Rent Too High

One common mistake that new landlords make is setting the rent too high for their property. While it may seem like a good idea to charge as much as possible, it can lead to several problems.

Why Setting the Rent Too High Can Be Problematic?

Attracting and retaining tenants can be challenging when the rent is set too high. Potential tenants may choose to rent elsewhere if the rent is significantly higher than comparable properties in the area. Additionally, if the rent is too high, tenants may need help affording it and may be more likely to fall behind on rent payments or move out early.

Setting the rent too high can also lead to increased vacancy rates and extended periods without a tenant, resulting in lost income for the landlord. Additionally, if the rent is too high, it can also lead to legal issues if tenants feel that they are being taken advantage of or that the rental agreement is unfair.

Strategies For Determining a Fair and Competitive Rent

To avoid setting the rent too high, landlords should research comparable properties to see what other landlords are charging for similar properties. It will give an idea of what the market will bear and what a fair and competitive rent would be.

Landlords should also consider the cost of maintaining the property, including taxes, insurance, and any necessary repairs or upgrades. Fair rent should be enough to cover these expenses and still provide a profit for the landlord.

Another strategy is to consult a real estate agent or property manager with experience in the local rental market. They can provide valuable insight into current rental rates and trends and help landlords determine a fair and competitive rent.

Ultimately, it’s essential to strike a balance between charging enough to cover expenses and make a profit while keeping the rent fair and competitive to attract and retain tenants.

Not Screening Tenants Properly

Properly screening tenants is one of the most critical responsibilities of a landlord. Ensuring that the individuals living on your property are responsible, reliable, and financially stable is essential. Failure to screen tenants properly can lead to various issues, including late rent payments, property damage, and legal problems.

Why Proper Tenant Screening Is Essential?

Appropriate tenant screening is critical for several reasons. Firstly, it helps to ensure that the individual or family living on your property can pay the rent on time and take good care of the property. It also helps to protect your property from damage and prevent legal issues that may arise if a tenant engages in illegal activities on your property.

Techniques For Thoroughly Screening Potential Tenants, Including Background Checks And Credit Checks

There are several techniques that landlords can use to screen potential tenants thoroughly. These include:

  • Background checks: A background check can help reveal any criminal history or past evictions a potential tenant may have.
  • Credit checks: A credit check can provide information on a potential tenant’s creditworthiness, including their credit score, payment history, and outstanding debts.
  • Rental history: Checking the potential tenant’s rental history will give an idea of their behavior as a tenant, whether they have been evicted or not, and if they have had a history of not paying rent.
  • Employment verification: Verifying the potential tenant’s employment and income can indicate their ability to pay the rent on time.
  • Personal references: Asking for personal contacts from the tenant can provide insight into the tenant’s character and how they treat others.

Not Having a Written Lease

One of the biggest mistakes new landlords make is needing a written lease. A lease is a legally binding contract between the landlord and tenant that outlines the terms and conditions of the tenancy, including the rent amount, security deposit, and other essential details.

Importance Of Having a Written Lease

A written lease is crucial for protecting the rights of both the landlord and the tenant. It provides a clear understanding of the expectations and responsibilities of each party and can be used as evidence in court in case of any disputes. With a written lease, landlords may be able to enforce the terms of the tenancy or prove their case in court. It also outlines both parties’ legal rights and responsibilities, which helps prevent misunderstandings and conflicts.

Tips For Creating a Comprehensive and Legally Compliant Lease

When creating a lease, it’s essential to include all the necessary information and follow state and local laws. Some tips for creating a comprehensive and legally compliant lease include:

  • Include the names and addresses of all parties involved in the lease agreement.
  • Include a detailed description of the rental property, including the address, square footage, and several bedrooms and bathrooms.
  • Clearly outline the tenancy terms, including the length of the lease, rent amount, security deposit, and when and how the rent is to be paid.
  • Include a section on the landlord’s and tenant’s responsibilities, such as maintaining the property, paying utilities, and complying with local laws and regulations.
  • Include a section on the grounds for termination of the lease, including non-payment of rent and breach of lease terms.
  • Include a clause that allows for legal action in case of a dispute.
  • Make sure to have the lease reviewed by a lawyer before finalizing it.

It’s also important to note that each state has its landlord-tenant laws, so make sure you are aware of and follow the specific rules in your state.

Not Maintaining the Property

Not Maintaining the Property Another common mistake new landlords make is paying attention to property maintenance. As a landlord, you are responsible for keeping the rental property in a safe and habitable condition for your tenants.

Why Proper Property Maintenance Is Necessary?

Proper property maintenance is necessary for ensuring the safety and comfort of tenants and preserving the property’s value. Neglecting maintenance can lead to costly repairs, legal issues, and even loss of tenants. Additionally, regular maintenance can prevent issues from becoming more extensive and more expensive problems in the future. It’s also important to remember that tenants have a legal right to a safe and habitable living environment, and landlords can be held liable if they fail to provide this.

Strategies For Maintaining the Property, Including Regular Inspections and Repairs

To ensure proper property maintenance, landlords should schedule regular inspections to identify and address any issues. It includes checking for leaks, pests, and other potential hazards. Landlords should also be responsive to tenant complaints and maintenance requests promptly.

It’s also a good idea to establish a preventative maintenance schedule to address seasonal upkeep, such as cleaning gutters, checking for leaks, and inspecting appliances and systems to ensure they are in good working order. Additionally, having a good relationship with reliable and licensed contractors and vendors who can assist you with repairs and maintenance is a good idea.

Not Being Prepared for Evictions

As a landlord, evictions are an unfortunate but sometimes necessary part of the job. It’s essential to be prepared for this possibility and understand the legal process of eviction to protect your rights as a landlord and avoid costly mistakes.

Why Evictions Can Occur and Why They Should Be Anticipated?

Evictions can occur for various reasons, such as non-payment of rent, violation of lease terms, or illegal activity on the property. It’s important to anticipate these possibilities and plan if an eviction becomes necessary. It can include understanding your state’s eviction laws, having a proper eviction notice ready, and keeping accurate records of any violations or non-payment of rent by the tenant.

Steps To Take to Prepare for And Handle Evictions Legally and Efficiently

Here are some steps landlords can take to prepare for and handle removals legally and efficiently:

  • Understand your state’s eviction laws, including the proper eviction notice and the timeline for the eviction process.
  • Keep accurate records of any violations or non-payment of rent by the tenant.
  • Have a proper eviction notice ready, and serve it to the tenant promptly and as per the local laws.
  • Hire an attorney, if necessary, to guide you through the legal process and represent you in court.
  • Be prepared to present evidence in court, such as lease agreements, rent payment records, and any violation notices.
  • Be respectful and professional throughout the process. Following the legal process and complying with state laws during an eviction is essential. Not doing so can lead to legal problems, delays in exile, and even financial losses.


Becoming a landlord for the first time can be a challenging but rewarding experience. By understanding common mistakes that new landlords make and taking the necessary steps to avoid them, you can increase your chances of success.

  • Thoroughly screening tenants can help prevent issues such as non-payment of rent or property damage.
  • Properly maintaining the property is essential to attract and retain tenants and avoid costly repairs and legal issues.
  • A written lease is crucial for protecting the rights of both the landlord and the tenant and should be comprehensive and legally compliant.
  • Being prepared for evictions, including understanding state laws and having a plan, can help landlords handle the process legally and efficiently.

Landlording can be a great way to earn additional income and build wealth, but it also comes with many responsibilities.

By being aware of these common mistakes and taking the necessary steps to avoid them, new landlords can increase their chances of success and enjoy the benefits of being a landlord.

Always consult with legal professionals if you have any doubts or questions about the laws and regulations in your area.