There are responsible landlords and not so responsible landlords. A landlord who takes their responsibilities seriously can maximize profits from a rental property and maintain happy tenants. Your tenants are more likely to stay and pay promptly when you fulfill your responsibilities as landlord.
Being a landlord requires making sure you are protecting your property and your income. Landlords unknowingly commit many mistakes that prevent them from becoming the best landlord. These mistakes cost them money and reduce their profits.
Here are some common mistakes that landlords make:
1. Being underinsured
Landlord insurance is one of the most critical things you have to buy in relation to your property. Some people think only of how much income they can get from rent and how they can save on costs. They fail to realize that insurance is the best way to protect that income and save on potentially huge expenses for repairs of damage, theft and lost rent.
As a responsible landlord you need to make a careful comparison of landlord insurance policies to ensure you have the best cover at the right price.
2. Lack of attention to maintenance.
Tenants feel aggrieved when a landlord does not act on their complaints. It is important to check out issues reported by tenants promptly. Do not ignore requests for repairs as these issues can lead to bigger costs in the long run.
3. Thinking of your investment as a hobby
It takes a lot of time and money to be a landlord. Your investment property is a business and not just a way to wile-away your time. Your property needs diligent maintenance and also entails financial obligations. The more effort and time you put into your property investment, the higher your potential yields. Give serious thought to how you can efficiently run your business and make sure you are safe from all the risks with a comprehensive landlord insurance policy.
In considering your financial obligations as a landlord you must remember that while paying insurance premiums may seem costly, the dangers of not being adequately covered can be financially devastating. If you are paying a mortgage on your property and it gets damaged by a natural event, you will need to have funds to rebuild it. In the event that your tenant absconds without paying rent or loots your property, you can also be placed in a difficult situation.
The smartest thing to do is to obtain the best landlord insurance cover to suit your situation. It is so easy to get peace of mind when you do a landlord insurance comparison online to find the most tailored solutions for your landlord needs.