What to Avoid in a Rental Property

Written By Amelia McGee

Have you ever gone to walk a potential rental property and thought to yourself “what a strange layout, where would someone even put a couch?” Or maybe you’ve pulled up to the property only to discover there is absolutely no place to park! In this blog, we are covering the top 5 red flags that should raise concerns for landlords when buying or managing rental properties.

You should avoid these 5 red flags in a rental property:

  1. Busy street/poor parking situation

    • Having a rental property on a busy street with a poor parking situation can present challenges. Not only is it super inconvenient for your tenant, but it also reduces the resell price value of your property. Difficulty finding parking can lead to frustration and dissatisfaction among tenants. This could result in higher turnover rates as tenants seek more convenient living arrangements.

  2. Funky property layouts

    • Properties with quirky layouts may have limited appeal to potential tenants, particularly those seeking more traditional or practical living spaces. This could lead to longer vacancy periods and difficulty attracting suitable renters.

    • Odd-shaped rooms or unusual layouts may pose challenges when it comes to furnishing the property. Tenants (or you) may struggle to find furniture that fits properly or complements the space, resulting in inconvenience and additional expenses.

  3. Allowing tenants to set the rules rather than following yours

    • Allowing tenants to set their own rules rather than adhering to those established by the landlord could result in the property being perceived as less desirable or poorly managed by potential renters or buyers. This could diminish the property's market value and make it harder to attract quality tenants or achieve optimal rental income.

    • This can also lead to have conflicting preferences and priorities when it comes to setting rules, leading to inconsistency in the management of the property. This lack of uniformity can create confusion and potential conflicts among tenants.

    • Tenants may set rules that inadvertently violate legal regulations or requirements, putting the landlord at risk of legal liabilities. For example, tenants might establish rules related to occupancy limits or safety standards that are not in compliance with local housing laws.

    • To ensure legal protection for both landlords and tenants, it's essential that everyone has insurance coverage. Luckily, you can get a free quote from Lemonade for renter’s insurance and Steadily for landlord insurance.

  4. Not following through with routine maintenance or tenant maintenance requests

    • Tenants rely on landlords to maintain a safe and habitable living environment. When maintenance requests go unaddressed, tenants may experience frustration, inconvenience, and decreased satisfaction with their rental experience.

    • Neglecting routine maintenance can lead to the deterioration of the property over time. Failure to address issues such as plumbing leaks, electrical problems, or structural damage can result in more extensive and costly repairs down the line.

  5. Letting your tenant screening practices slide

    • Problematic tenants identified through inadequate screening may be more likely to break leases prematurely or face eviction, leading to higher turnover rates. This can result in increased vacancy periods, lost rental income, and additional costs associated with finding new tenants.

    • Renting to tenants without conducting proper screening can expose landlords to legal liabilities. For example, if a tenant engages in criminal activity or causes harm to others on the property, the landlord may be held liable for negligence or failure to adequately screen tenants. Negative experiences with tenants may lead to negative online reviews, word-of-mouth referrals, and difficulty attracting quality tenants in the future.

    • Having the right property management software can make screening tenants and processing maintenance requests a breeze. Here’s some to check out:

      • Hospitable: great for managing MTRs + STRs. Get 25% off for 3 months!

      • Baselane: keep your rental property finances in order, all in one place! Plus, you can enter to win a $500 Amazon Gift Card!

      • Tenant Cloud: great for managing LTRs.

Failing to identify these 5 red flags can lead to a range of negative consequences, including financial losses, legal liabilities, and damage to your reputation as a landlord. Prioritizing the list above is crucial for mitigating risks and ensuring the long-term success and profitability of your rental properties. For a comprehensive guide on avoiding these mistakes and more, check out our new book, The Self-Managing Landlord!

Resources:

Amelia McGee
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