Whether you are just starting landlording or have been at it for some time, chances are that you have attempted to take on the challenges of being landlord all on your own. There isn’t anything wrong with this, and you can be entirely successful running a do-it-yourself operation, especially with a small number of properties and tenants. However, even with the smallest operation, you should be alert to common mistakes landlords make and how to avoid them.
Improperly Screening Tenants
Proper tenant screening is foundational to your success as a landlord. Maybe you’ve never been good about properly screening your tenants, or you started strictly but have begun to cut corners. Your properties will only turn a profit if you can keep renters (who pay on time) in them, and a thorough tenant screening process will make sure that you select tenants who will pay their rents consistently, respect the stipulations of your lease, and stay in your property longer.
Be consistent and comprehensive (within the limits of the law) during your screening process, and follow up on background and credit checks. It may take some work up-front but will save you enormously during the course of that tenants time in your property. A Carlsbad property management firm will offer these services and take much of the burden off of you.
Pricing Too Low or Too High
It’s very easy to make mistakes when it comes to setting rents for your properties, especially if you aren’t performing a thorough market analysis. This means understanding the value of your property and the rent that you need to set to get a good return on your investment. It also means understanding your neighborhood, the local market and market trends, and the type of renters that you want to attract.
It is a good idea to perform a market analysis, which is a process in which you will compare your property to comparable properties in your area and (accounting for special features) set pricing or rates based on that comparative analysis. This is a service that a Carlsbad property management company can offer, and taking advantage of their services can help you to maximize the money that you are making off your property.
Performing Unqualified Maintenance
If you are managing your portfolio, and you experience a maintenance complaint or issue, it can be very tempting to grab a toolkit, rush in, and get to work. Maybe you don’t want to put off a repair that seems minor (another common mistake), and you want to be responsive to issues as they come up. Maybe you want to save a little money. Regardless of how handy you are, it is never a good idea to perform maintenance that you aren’t qualified to execute when a professional could do a more thorough and complete job. This is especially true for issues involving water or electricity. 
Your properties are an investment, and there are legal and regulatory guidelines that you have to meet as a landlord to keep them safe and livable. Cutting corners is unwise. A Carlsbad property management company will have a network of professionals that they can call upon to address maintenance issues as they arise and help you circumvent many of these issues altogether.
Expecting Too Much Too Soon
It can be easy to get into real estate investment expecting a big return right away. Like any other investment or business, you may need to grow slowly and cultivate your success over time. Do not expect rapid and extensive financial success. On the other side of the coin, be prepared for unexpected or higher than expected expenses. You may have unexpected maintenance costs arise. Your property may sit vacant longer than you ever thought possible. You may need to pay legal fees to deal with a problematic tenant in court. Keep your expectations modest and be prepared for expenses to arise that you did not anticipate. A Carlsbad property management company can be a hedge against some of these issues by helping you to keep up on routine maintenance, more effectively market and fill your property, and even assist you with legal matters.
Not Hiring a Property Manager
A Carlsbad property management company will take on the day to day challenges of managing your properties. They will handle tenant placement and screening. They can address maintenance issues and tenant complaints quickly when they arise. They can handle rent collection, record keeping, and assist with many other issues. Especially if you have a full-time job or multiple rental properties, one of the most common mistakes that a landlord can make is not hiring a property manager to take care of everything for them!
If you are wondering how to make the skills and resources of a property management company work for you, learn more by downloading our free guide to selecting the best Carlsbad property management company. Simply enter your name and an email address, and you can be on your way to investment success and full properties that are earning you money.
