Property Management Blog

Being a DIY landlord may seem appealing due to the control and potential savings, but it comes with challenges that can lead to costly mistakes. Managing a rental on your own requires careful attention to avoid issues that can quickly escalate into financial headaches.

To ensure success, it's essential to stay on top of legal requirements, tenant screening, and regular property maintenance. Neglecting these key aspects can lead to long-term problems, including disputes, vacancies, and financial setbacks.

Let our team at Foothills Properties review common mistakes DIY landlords make and how to avoid them.

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1. Not Preparing a Written Lease Agreement

One of the most common mistakes DIY landlords make is not having a written lease agreement. A formal rental agreement clearly outlines the rights and responsibilities of both parties, reducing the potential for misunderstandings or legal disputes. 

Without it, tenants may dispute important policies, such as rent payments or damage responsibilities, causing unnecessary conflict.

A solid lease also makes it easier to enforce rules and regulations. Without clear terms, tenants may take advantage of the situation, leading to issues like late payments or property damage. 

A well-crafted lease, ideally prepared with the help of a property manager, minimizes these risks and helps maintain a smooth landlord-tenant relationship.

2. Skipping Periodic Property Inspections

Regular property inspections are essential for maintaining your rental property and ensuring it meets safety and habitability standards. 

Skipping inspections can result in unnoticed damage, neglected maintenance, and potential legal issues, as landlords are responsible for complying with local housing codes. Catching small problems early helps you avoid costly repairs down the road.

Inspections also strengthen the landlord-tenant relationship by demonstrating your commitment to the property’s condition. By clarifying maintenance responsibilities, you can prevent disputes and ensure that tenants stay on top of their duties. 

Without regular inspections, it becomes harder to enforce rules, and small issues may snowball into bigger problems.

3. Mishandling Vacancies

Vacancies are a natural part of owning rental properties, but they can be costly if not managed properly. When a unit is empty, landlords still face ongoing expenses like maintenance, taxes, insurance, and utilities without any rental income. 

DIY landlords often make the mistake of not budgeting for these periods, leading to rushed tenant screening or lowering standards to fill the space quickly.

Having a proactive plan for handling vacancies is crucial. Set aside a vacancy fund to cover maintenance, marketing, enhancing curb appeal, and tenant screening costs. 

By staying prepared and consistent in your approach, you can reduce vacancy periods, maintain steady rental income, and build a reputation as a reliable landlord that attracts quality tenants.

4. Delaying Legal Decisions and Evictions

As a DIY landlord, developing a personal relationship with tenants can lead to leniency in enforcing property policies, such as allowing late rent payments without penalties. 

While this may seem compassionate, it can create problems if tenants begin to take advantage, making late payments a habit and impacting your financial stability.

To avoid this, it’s crucial to set clear expectations and enforce payment policies consistently. Allowing late payments without consequences can affect your cash flow and ability to manage property expenses. 

Hiring a property management company can help ensure rental terms are enforced professionally, reducing conflicts and protecting your investment.

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5. Not Figuring Out the Rental Market

Many DIY landlords make the mistake of using nearby rental prices as the sole basis for setting their own rates, which can result in rents that are too high or too low. 

Setting the right rent is crucial for attracting quality tenants and maximizing profitability, requiring thorough research of the local market.

To avoid this, take the time to research both current listings and recently rented properties in your area. Compare factors like amenities, property condition, and location to determine a fair and competitive rent. 

When raising rent annually, aim for a small, reasonable increase, such as around 5% to cover rising costs while keeping your rental attractive to potential tenants.

6. Skipping Credit and Background Checks

Conducting thorough credit and background checks on potential tenants is crucial to protect your investment. 

Skipping this step to fill vacancies quickly can lead to unreliable tenants who may miss payments or damage your property. Credit checks assess financial reliability, while background checks identify risks such as criminal history or past evictions.

Neglecting tenant screening can result in costly issues later. Professional property managers handle this process to ensure qualified tenants are selected, but if you're managing the property yourself, prioritize screening to avoid stress from evictions or non-payment and safeguard your investment.

7. Not Keeping Records

Keeping written documentation of tenant interactions is essential for legal protection. Notes on phone calls, emails, voicemails, and text messages provide a clear record of agreements, disputes, and communications that can be invaluable if a dispute arises.

These records also help ensure you meet your responsibilities as a landlord and follow the lease terms. If a tenant claims a violation, documented evidence can protect you, maintaining professionalism and transparency throughout the rental process.

8. Failing to Meet Housing Codes

Failing to meet housing codes exposes DIY landlords to legal and financial risks. Local regulations ensure rental properties are safe, and neglecting safety measures can put tenants at risk and leave landlords vulnerable to lawsuits. Tenants may even break the lease if the property is unsafe or non-compliant.

In addition to legal trouble, violations can result in costly repairs and loss of rental income. Landlords may face fines or eviction orders if authorities find violations. 

Regular inspections and staying informed on building codes help ensure the property remains safe and compliant, protecting both tenants and investment.

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Bottom Line

Being a DIY landlord offers control but comes with challenges like neglecting lease agreements, skipping inspections, or failing to screen tenants. Avoiding these common mistakes can help you minimize legal issues and costly errors.

Partnering with a trusted property manager can simplify your rental business. We handle everything from marketing and tenant screening to rent collection and property maintenance, helping you reach your financial goals and maximize rental income.

Contact Foothills Properties today!