Here are 5 deadly mistakes most landlords make….do you make any of these?
Not getting cheap landlord insurance
There are lots of different companies out there offering landlord insurance, which means the premiums are getting lower every year due to the competition.
This is why you should compare quotes so you can find the cheapest landlord insurance available.
Not choosing the right location
When you are a new landlord, the biggest mistake you can make is buying a property in the wrong part of town. Sure, you might be eager to get going and earning a profit, but this doesn’t mean you should neglect researching the area.
At the end of the day, if your property is located between a crack den and a massage parlor, then you will have major problems trying to find suitable tenants willing to pay your asking price.
Not negotiating with agents
If you have decided to use the services of a real estate agent to do all of the hard work for you, then please be aware that the majority of agents don’t come cheap.
With this in mind, in order to stop agent fees eating into your profit margins, it’s essential that you negotiate as hard as you possibly can. You might be surprised at how much it’s possible to save on the cost of real estate agent fees.
Not hiring quality contractors
Another deadly financial mistake that most landlords make is hiring lousy contractors. Ultimately, there will be a lot of repairs to be carried out over the coming months and years, and if you don’t get quality workmanship, then expect to have your properties literally falling apart.
Ask around for the contact details of a good contractor, and also check for reviews on the internet to see what past customers are saying.
Not having a good credit score
Most landlords get a mortgage to buy their rental properties. However, when your credit score is lower than average, then this means you end up paying the highest interest rates.
For this reason, it’s essential that you do everything in your power to improve your credit score. Avoid getting into a lot of debt, always make payments on time, and even request a copy of your credit report so you can check for errors and then have them removed.