If you’ve decided to take the plunge and become a landlord for the first time, congratulations! However, before you begin your journey and build your property empire, you should know some misconceptions about owning a rental property that could come back to bite you later.
In this article, the experts at Rent In Brevard Property Management are busting five common rental myths to help you avoid disaster.
Rental Properties Generate Passive Income
Although technically accurate according to revenue agencies, the belief that rental properties generate a “passive income” isn’t entirely correct. Of course, there is more to owning a rental property than simply collecting rent checks.
From marketing your property and screening tenants to keeping on top of landlord-tenant law, being a landlord can be extremely time-consuming. Ultimately, many landlords find that they are still trading time and labor for money, which is hardly “passive income.”
Security Deposits Cover Wear and Tear
Wear and tear is an entirely normal and expected phenomenon — even with the best-behaved tenants. With this in mind, it’s important to note that landlords cannot use a security deposit to cover general wear and tear expenses. If you’re not sure what the difference is between tenant damage and normal wear and tear, reach out to a Brevard County property manager who will be able to advise you. Seeking professional advice can help you avoid any disagreements over the security deposit.
A Good Credit Score Guarantees a Qualified Tenant
Although a high credit score can help you determine whether a potential tenant is financially responsible, it doesn’t show you the whole picture. It’s essential to go beyond simply finding a tenant’s credit score by running a full credit report. A comprehensive credit report will show you any late payments and outstanding loans and debts your tenant may have. In addition, you should also ask for previous references from your tenant.
All Repairs and Maintenance Are A Landlord’s Responsibility
As a general rule of thumb, damage caused by tenants is not the landlord’s responsibility to fix. However, the landlord is responsible for plumbing, electrical, heating, and AC repairs. As well as repairs, it’s also essential to keep on top of general property maintenance. With this in mind, it’s necessary to identify and clarify any maintenance tasks your tenant is responsible for. It’s a good idea to clearly outline any maintenance expectations in the lease agreement to avoid potential confusion.
Any Tenant Is Better than No Tenant
If your rental listing has been vacant for a while, or if your property isn’t receiving much interest, you might be tempted to lower your rental standards and opt for a less qualified tenant. Put simply; this is not a risk worth taking.
Many landlords dread the costs associated with vacant property. While it’s true that vacancy costs can be high, the costs associated with a careless tenant — or an eviction — can be even higher. In general, it’s better to promote your rental property or hire an experienced property management company to help you find the best tenant. At Rent In Brevard Property Management, we market our client’s rental properties on multiple websites to ensure maximum exposure. We also provide strict rental criteria and arrange a comprehensive credit check, tenant housing history, employment verification, and criminal record investigation.
Are you a Brevard County landlord looking to optimize your income? Rent In Brevard Property Management’s team of local, licensed professionals is here to help. Our team prides itself on its professionalism and high standards of integrity and care for our renters, landlords, and the community. Call us today to learn more about our full-service property management service.