When owning rental property in Delaware, there are rules and regulations that must be followed in order to operate your business successfully. While most landlords follow the appropriate steps to the letter, there are still common mistakes that are made when operating rental properties. Knowing what to avoid will help you to be successful within your rental endeavors in the state of Delaware. Check out four avoidable mistakes below.
#1 Failing to Take Care of Maintenance Problems Quickly
Every landlord knows that maintenance issues are common when owning property. When an issue arises, it must be taken care of quickly. You want the building you rent to be in good operation and have a good reputation. A quick way to get bad reviews as a landlord is to fail to take care of maintenance requests quickly. When you do not handle maintenance issues fast, such as HVAC repair needs or electrical issues, you are at risk of losing tenants as well as gaining a poor reputation as a landlord. Take care of maintenance issues as quickly as possible to avoid any future problems.
#2 Losing Focus of Bottom Line
Many landlords tend to lose focus of their bottom line. When you have a rental investment property, you are investing in your financial future. You can turn rental properties into a career or use the property to build on retirement needs. Either way, you must focus your efforts on the right aspects. The rent charged should make sense for the neighborhood as well as property type, generating cash flow due to the price point. You do not want to set the rent too high and have a vacancy for a long time, as this hurts your bottom line. Be sure to focus on how you can use the rental property to steadily earn an income. Rental property in Delaware should have a price point that meets the location and property type so you have a steady flow of renters instead of long-term vacancies.
#3 Failure to Complete a Professional Tenant Screening
Another issue landlords face is tenant screening. For your rental property business to be successful, you must screen potential tenants carefully. You must have a background check completed, reviewing criminal records, credit scores, etc. You should look at former employment as well as current employment, properly screening potential tenants in every way possible to ensure you are renting to a trusted and responsible individual. Screening laws in Delaware can help you to successfully complete this process.
#4 Location of the Property
When purchasing rental investment properties, the location of the property should be reviewed thoroughly. You should consider if the location is in demand for renters, if you will have a large pool of renters to choose from, etc. You want to find a location that meets your rental property needs and goals, instead of just buying the first property you view. Properties near amenities like dining and shopping as well as near public transportation can help you see the biggest return on your investment.
Overall, it is important to do your homework and act accordingly as a landlord. Avoid the mistakes above and you should be able to maintain quality tenants, avoiding any vacancies within your rental properties for years to come.