Managing a rental property in Las Vegas is difficult work, particularly if you are not used to being a landlord. Many mistakes can be made on your way to building a successful rental business. Luckily for you, this article will cover some of the most common mistakes landlords make when running a rental property so you can avoid them on your journey from tenant to landlord.
Little Flexibility in the Rental Process
You should absolutely respect the laws of your area when dealing with tenants. If you aren’t sure about the law, or you do not trust yourself enough with the management process, then you should know that there are diverse property management services in Las Vegas that can be hired to help you. These agencies will know what you can or cannot do in your area, so it is best to contact them if you are not sure, or if you do not have time to do it.
However, this doesn’t imply your lease has to be an absolute firm document. The last thing you want is a tenant who feels so mistreated that they break their agreement and spillover, leaving you with an empty house just when you need it most.
By being too strict about interpreting contracts, or by enforcing rules right on the edge of the law, you can cause your tenants to leave before their lease expires.
Treating Your Rent Like A Money Pit
The first common mistake new landlords make is trying to save every penny of the rental income they receive for themselves. This may not be a problem if you’re using your property as your primary residence, but it can quickly turn into a problem if you’re renting the property out to tenants.
This mistake can even backfire by ruining your relationship with the tenant. They need to understand that they’re paying for access to the house they live in; not just for the roof over their heads. It is in their best interest to keep your property in good working order, and they’ll likely try this if you make it clear that this is a business transaction.
Your job is to set and maintain standards for your tenants, while guaranteeing they can afford to stay there.
Not Treating Your Property Like a Business
Your business may be renting out homes, but that does not imply your rental property should be treated as if it were ordinary. You need to treat your business like a business and it should be run like one: with hard work, innovation and good communication with your tenants.
If you do the bare minimum, do not budget effectively, or make smart business decisions, not only will you face problems but your tenants as well.
Not Negotiating Your Lease Terms
A lease is an agreement between a landlord and a tenant that states in writing what they both agree on about the terms of residence. There should be an agreement on the amount of the lease, when it’s due, how often it can be increased, and the term of the lease.
You should all the time include a clause explaining what happens if one party violates the terms of their lease. This is not to say you should expect your tenant to break it, but you do not want to be caught off guard if it does.
Making Unreasonable Rules
Let’s be clear: some rules must be enforced for the benefit of tenants and landlords alike. However, these rules must even be within reason – such as by not denying them access to any public areas or limiting their use of the home.
Being too strict in your rules can cause your tenants to feel uncomfortable, which can increase your chances of canceling their lease before it expires. It will eat up your money when you need it most, and it can even be detrimental to your long-term business.
Not Putting Everything in Writing
When you are dealing with tenants, it is important to have everything in writing. This not only protects you both financially, but can even help stop an accidental eviction or misunderstanding that could lead to serious problems.
While some states don’t require written agreement between landlord and tenant (but not in Nevada), if you get one, do not take it lightly. Keep a copy of the newest agreement on file so there isn’t any confusion about what was agreed between you and the tenant.
Mistakes can cost a lot when managing your rental property – both in terms of money and time. By avoiding the common mistakes listed above, you’ll be well on your way to a successful and stress-free experience as an owner.