By: Joshua Campbell
5 Mistakes Landlords Make
Tags: knowledge broker, knowledge broker real estate, moving, relocating for moving, toronto real estate, newmarket real estate, new homes, new condos, investment property, mistakes landlords make, landlords,
Being a landlord sounds simple enough: buy a property, make a few renovations, find some tenants, make money. But what many future investors fail to know is how difficult being a landlord can actually be. Becoming a landlord requires you to think like a business professional. If you don’t you will end up making these 5 mistakes.
We are sorry to tell you but just because you have a property available does not mean anyone wants it. A rookie mistake is thinking as soon as your property hits the market you will have tenant offers rolling in. That unfortunately is not the case. In many situations, landlords will be on the hook to pay the difference of the intended months’ rent until they can find suitable tenants. Make sure you have extra funds available before you buy a property. The worst thing that can happen is your investment property fails before it even begins.
- Thinking Your Property Will Always be Rented
After a few weeks or months with a vacant property, landlords tend to get nervous. Especially if they did not have the extra funds available as mentioned in #1. For this reason, inexperienced landlords make the mistake of not running thorough tenant checks. You need to check all potential tenant’s credentials, obtain a credit report, and receive employer references. A real estate agent can help you do this to relieve some of your stress.
- Not Running Thorough Tenant Background Checks
Under the Ontario Human Rights Code, it is illegal to refuse a property, be bothered by a landlord, be bothered by other tenants or treated unfairly because of a person’s race, colour, ethnicity, religious beliefs, ancestry, sex, family status, sexual orientation, disability, marital status or age. Housing is a human right and every tenant requires equal treatment. The code protects people during the interviewing process, while in occupancy and when evicting tenants.
- Neglecting or Discriminating Against Tenants
Owning a rental property requires you to wear multiple hats, one is a handyman. Young, advantageous investors often think when a problem in a unit arises that they will be able to call someone to fix it. Quickly realize how much that will end up costing you. Therefore, it is your responsibility to fix any problems that your tenants face. You are the go-to handyman for leaky faucets, clogged pipes, broken air conditioning units, broken toilets and a variety of other glitches.
- Not Being The Go-To Handyman
- Not Learning About Your Tenants’ Rights
As the landlord, your primary job is to ensure your tenants and property are safe and secure. To ensure this you must read up on your tenant’s rights. Too many times landlords cross the line and find themselves in a legal battle. Before you buy an investment property team up with a landlord and tenant lawyer. Your lawyer will be there to guide and protect you from any infringements to your tenant’s rights.
If you are ready to take on the responsibility of becoming a landlord and do the work necessary click here to learn how Knowledge Broker can help start your journey.
At Knowledge Broker, our goal is to create an open-source of information for all our clients. We want to ensure that, at the end of the day, they get exactly what they want and what they need. If you know someone who could use our help or services please put them in touch with us or send us their details using the contact information below. And before you go, click here to take the Knowledge Broker Quiz and see exactly what we can do for you!
JOSHUA CAMPBELL (@knowledgebrkr)
Real Estate Broker
Coldwell Banker The Real Estate Centre, Brokerage
249 Avenue Road • Newmarket, ON L3Y 1N8