Owning rental property is an excellent way to build wealth while generating passive monthly cash flow but there are some things that landlords do that can kill their rental property profitability.
In this article, we will break down several things that can impact rental property profitability so that both new and experienced landlords can avoid making these mistakes moving forward.
Mistake #1 – Not Renting Vacant Units Quickly
One of the costliest mistakes that a landlord can make is not turning over (renting) vacant units quickly.
Some landlords are fond of waiting until after a tenant has moved out until they start marketing their vacant rental but the reality is that waiting can prove to be costly and what was supposed to be a short vacancy can turn into a long-term vacancy.
From the moment that a tenant has notified the landlord that they intend to move, the landlord should move forward with taking steps for getting that property in rent-ready condition so that once the tenant moves out, they can quickly make repairs, or clean the property then list it online.
Mistake #2 – Inefficient Tenant Screening
Tenant screening is the ‘lifeblood of any rental business because it’s the quality of the tenants that we rent to that will bring in the long-term, consistent income.
When a landlord doesn’t screen their tenants efficiently, they may ultimately rent to someone who ends up being a troublesome tenant who doesn’t pay their rent on time or worse, ends up evicted.
To avoid screening tenants efficiently, landlords should always use the best tenant screening services available while paying close attention to things like an applicant’s rental or credit histories because those things will help the landlord to know if the tenant is going to be a good long-term tenant.
Mistake #3 – Poor Communication With The Tenant
Last of all, but most important, another costly mistake that many landlords make is having poor communication with their tenants.
Communication is vital between a landlord and tenant because it’s what’s going to lead to a happy tenant who will be ready to renew their lease. After all, they enjoy where they live and feel that their landlord is attentive to their needs.
Communication keys to success:
- Offer tenants multiple ways to connect including call/text and email.
- Respond to tenants’ customer service or repair requests quickly.
- Always keep promises and keep tenants informed of delays to getting things done at the rental property.
Contact Rent Portland Homes
At Rent Portland Homes, we offer local property management for single-family and multifamily properties.
To learn more about the services that we can offer you, or to get a quote, contact us today by clicking here.
