No one likes losing money, whether that is money lost in a bet or at the local supermarket. When it comes to rental business, the amount of money potentially lost every month can be massive. Interestingly, people new to the business often do not even realize of this loss or end up ignoring it in pursuit of short-term profits. Here is a look at mistakes that cost you a lot of money as a landlord.
Lack of urgency
You are sure to lose a lot of money if you do not look to fill vacant properties as soon as possible. Some people might think that it is beyond their control, but that is simply not true. As soon as a tenant informs you that they will be moving out, you should start to make arrangements to invite new tenants to your property. Put up a sign in the yard, advertise the property using social media and get the word out. The longer the property remains unfilled, the longer you lose out on rental income and pay utility charges for a vacant property.
Not increasing rent
Some landlords fear that tenants might decide to move out if the rent is raised, ultimately costing them a considerable amount of rental income. This might not be the case, especially if your tenants happen to be living in your property for well over a year. Whether tenants like it or not, they need to keep up with the pace of inflation, that continues to tick up. You are sure to lose a lot of money if you choose not to raise rent.
Not charging for late payment
You are likely to hear a wide range of reasons for late payment from tenants. It is important for both, tenants and landlords, to be professional about timely payment. It might sound unreasonable to punish tenants for late payment, but this is inevitable given that you are running a business and must account for your cashflows. Once tenants are penalized for late payment, they are likely to be more disciplined about rent payment and fear being penalized in future.
At BBA Management, we offer full-service property management in Greater Boston cities like Brookline, Newton, Fenway, Kenmore and Cambridge. You can also contact us or call us at 617-734-6900 or send us an email at firstname.lastname@example.org.