Common Mistakes Landlords Make
This page discusses mistakes made by landlords when dealing with their properties.
“The landlord goes on vacation and doesn’t tell us.”
Every single month, some dingle nut goes to Mexico and comes back a week later and asks about their property. Bummer. “Sorry Mr. Dingle Nut, we couldn’t reach you and we took the buyer to someone that was paying attention.” Amazingly, people who have even read this paragraph will go on vacation and not tell us. We can’t figure this out… if we don’t hear from an investor within 24 hours, we take the tenant somewhere else and turn the property off until they resurface.
“The landlord doesn’t educate the spouse or partner about the contract (rental or lease/option).”
Mrs. Spouse goes sideways after reviewing the terms and decides that they don’t want to do a lease/option or they need more time to think about it. This must have been too difficult to have their partner read this page BEFORE we brought a deal to the table. If we don’t hear from an investor within 24 hours, we take the buyer/tenant somewhere else and turn their property off until they reach a decision.
“The landlord dilly dallies after we bring a deal.”
The landlord decides to sit on a contract for a week after we bring them a buyer/tenant. They want their lawyer, sister, uncle real estate agent to review the contracts. How difficult was it to have their lawyer, sister, uncle real estate agent read the sample contract BEFORE we brought a deal to the table? Since their property sat vacant for a month they didn’t have time to do their homework. If we don’t get a call back within 24 hours, we take the buyer/tenant somewhere else and turn their property off until they review the contracts.
“The landlord thinks we called to chit chat about the weather.”
They forgot that we spend over 8 hours a day on the phone trying to bring buyer/tenants to the table. We don’t call people to chit chat about the weather. In fact, the only reason why we call a landlord is because we have something urgent to discuss. If we don’t hear from a landlord within 24 hours, we take the buyer/tenant somewhere else and turn their property off until they call us back.
“The landlord balks at the terms they agreed to have advertised.”
No problem, we take the buyer/tenant somewhere else. We then modify what we have advertised and wait for another tenant.
“The landlord waits until a property is fully rehabbed before marketing the property.”
This is a very common newbie mistake and usually happens when a landlord buys a property through someone else. There is no benefit to hiding a property even if it needs some work. It’s perfectly ok to state in the advertising that work will be done. Buyer/tenants who want a specific type of property are willing to wait to have it fixed.
“The landlord makes it difficult to access the property.”
They can’t imagine how pissed off we get after driving for an hour to meet with a hot prospect and discover we can’t show the property. What is really hilarious is that the landlord decided to save a dollar by not getting a key duplicated because as they gave the one key to a cleaning woman. They saved a dollar and it cost them 2 months of income! Don’t laugh. This happens once a month. There is less than a 10% chance a buyer/tenant will reschedule.
“The landlord purchases new appliances.”
The 3rd renter or 5th lease/option tenant will leave turds in the refrigerator. It will be so disgusting you will have to pay someone to take it away. If you get a lease/option tenant, you don’t even need appliances! This is another reason why most of our investors go with a Lease/Option.
“The landlord wastes time looking for the best deals.”
They spend weeks looking for a cheaper painter who costs $200 less then what we have. Every day their property sits vacant costs money (income/30). This is usually at least $40 a day.
“The landlord puts earrings on a pig.”
They want to put in all the bells & whistles on an income property. They want crown molding and granite counter tops made for the Queen of England. We believe in the school of “good enough” which means we get the job done in short order.
“The landlord puts grass in.”
We live in a desert. Grass doesn’t grow here unless some insane person constantly tends it. Renters don’t fall in the category of good tenders. Grass also invites tenants with dogs. If you make the mistake of getting a property with grass, let it die, put in desert landscaping – free yourself forever. Grass puts a chain around your neck.
“The landlord neglects the front yard.”
You want to lure prospective tenants in and keep your neighbors happy. Rock. Cactus. Done. You can get crazy with a mesquite or some oleanders if you feel a need to get creative. Rose bushes and anything that requires water for more than a week will die a horrible death between your 3rd and 5th tenant.
“The landlord fixes up the back yard.”
There is an 80% chance your next tenant will destroy it. Leave it alone. If your tenant wants to install or plant something, offer to split the cost. Make sure they have labor and money invested. You don’t want to do anything that will encourage a pet.
“The landlord doesn’t adjust prices weekly.”
To keep the property “Fresh” on the web radar, a property attracts more attention if the price is reduced every week. We suggest about $25/week. The market will decide what price the property will get occupied.
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