Becoming A Landlord: Some Common Mistakes For Beginners
Author: Joel Teo

Many people invest in rental property with the expectation of
having an income every month. However, being a landlord is about
more than just collecting money every month. Many new landlords
make some common mistakes that may end up costing them money on
their real estate investment. By knowing what these mistakes are
ahead of time can help you avoid making them.

The first mistake that many real estate investors make when
they purchase rental property and become landlords is that they
do not become knowledgeable of landlord tenant law in their
specific area. Three of the biggest problems in this area are
late fees, tenants rights to privacy, and evictions. Some
landlords may charge excessive late fees, and courts generally
take a dim view of late fees that they consider too high. A
landlord may charge a late fee, but they must show where the
damages are from to validate the amount of the fee if it is
steep. Another common legal mistake new landlords make is
violating the rights of their tenants. Normally forty eight hour
advance notice is required for a landlord to come into an
occupied rental unit, whether the reason for the visit is for
repairs, maintenance, or to show prospective tenants the rental
unit. If a landlord violates this by repeatedly showing up
without notice then a tenant may get money damages for the
violations.

A big mistake that new landlords make is that they do not
maintain and improve their rental property. By keeping the
maintenance up on your rental units the value of your investment
does not decline. By improving your investment property, you
increase the amount that tenants will pay to rent your units. As
the landlord you can charge higher rates and get better tenants
if your units are clean, nicely done, and well kept. Even a
simple spring cleaning, minor repairs, and cosmetic work between
tenants will improve the class of people who want to rent your
unit.

A very common mistake that new rental real estate investors
make is that they do not treat their investment property like it
is a business. You invested money to make money, not to lose it
or give it away. It is important to remember that you are not a
charity, and that tenants need to live up to their side of the
contract. If doing business with a person cost you money instead
of made you money, you probably would stop doing business with
that person. If a tenant is repeatedly late with the rent, they
are costing your business money and it is best to cut your
losses and find a new tenant who will pay their rent on time.

To maximize your real estate investment income it is important
to remember these tips. Know the laws in your areas concerning
the rights of landlords and tenants, charge reasonable fees that
are not excessive, and value the privacy rights of your tenant.
It is also a good investment strategy to maintain and improve
your investment property to keep or increase the value of your
investment. Remember that your investments are a business, and
keep this in mind when you are dealing with your tenants.

Copyright © 2007 Joel Teo. All rights reserved. (You may
publish this article in its entirety with the following author's
information with live links only.)


About The Author: Joel Teo writes on various financial topics
including Las Vegas Real Estate. Learn more about Las Vegas Real
Estate Investing at http://www.realestateinvestment101.info