Assuming the property would rent for more than it actually would.
Putting the property on the market for higher amount than what it should be would result to longer vacancy. Your perceived cash flow will go away, and all other things that you wanted to do will not happen because you will be so stressed out. To avoid this, make sure that whatever you put the house on the market for should be what the numbers dictate, and not what you think it should rent for.
Not understanding Fair Housing Laws.
There are a lot of laws protecting the tenants such as Fair Housing Laws, Discrimination Laws,
Texas Property Code, and Fair Credit Reporting Act. Make sure that you know and work on the confines of these laws. Do not deviate. Take time to educate yourself and learn what these laws are. Not knowing these laws and violating them will get you into trouble. Hire a management company that knows these laws, too. Know what you can and cannot say when marketing your properties. When potential tenants contact you, know what questions you can and cannot ask. We are in a very litigious society so make sure to do things correctly. Learn more about When is the Right Time to Hire a Property Management Company in Dallas.
Putting the property in only one section of the market.
Put the property not only in one section of the market but in as many portal places as you can. Achieve wider reach by putting your property in Zillow, Trulia, MLS, and in other places. Marketing your property in multiple venues will most likely make the phone ring.
Not being clear on what you screen the tenants on.
Make sure to have tenant qualifications written down and follow them. Deviating from your written tenant qualifications will get you into trouble. We have a 20 point screening process.
Filling up the wrong leasing paperwork.
When filling up leasing paperwork, make sure that it is a correct lease that a landlord can use, and make sure that it is current with the state laws. Do not put things in the lease agreement which you cannot enforce.
Not knowing what the maintenance costs are.
An older house needs more maintenance than a new one. Maintenance is something that you have to allocate for.
Not understanding the policies of the business.
When you have a rental property, you have a business. You should understand that a business has policies, procedures, and structures. Do not treat and run it like a hobby.
So those are the things that you could do yourself. It is easy to make investing mistakes if you are new to investing or aren’t familiar with the area. If you want to have us help you, do not hesitate to call Empire Industries and we’d be happy to help with your Dallas property management needs.
If you’d like to sit down and talk with me about investing, I’d love to do a one-on-one wealth-building strategy session with you. Give me a call at 214-499-9813 and let’s see how we can help you.