Now today we are going to learn 7 costly mistakes that accidental landlords can make and it will cost them big bucks. This is going to be a two part video, so let’s go ahead and get started with this. The number 1 costly mistake is going to be not completing a thorough background check for each applicant.
Not having the right tenant in your property can and will cost you thousands of dollars and lots of headache and stress in the future. You definitely want to make sure you do a thorough background check. Now what do I mean by background check. You need to do a national check of credit, evictions, foreclosures, broken leases. You also need to check their criminal background, previous addresses where they’ve lived before and also employment and previous employment on each applicant that is over the age of 18, who is planning on staying at the property. The 2nd costly mistake is going to be lease enforcement. Now these are a couple of questions for you to think of and come up with answers in case in does happen to you. Now the first one is going to be: how do you deal with a tenant that is paying late on their rent. The second is: when do you start the eviction process or do you even start the eviction process.
Make sure you have a good goal plan on what steps will be taken, if a tenant is in breach of a contract. Now the 3 rd costly mistake is going to be a securities deposit. You as a landlord need to take a security deposit on the tenant prior to them moving into the property. A typical security deposit is going to be the same as the first month’s rent. For example, if you’re monthly rent is a thousand dollars a month, you want your security deposit to be a thousand dollars as well. Now that is only if the tenant has a good background check, like what I stated before in the tenant screening check with the evictions, broken leases, credit scores and etc.
As long as everything is fine, they can pay a thousand dollars security deposit plus a thousand dollars rent upfront to get the keys to the property. Now if they do have some blemishes on their credit score or evictions, or foreclosures you have the option to ask for a double or triple security deposit prior to the tenants moving into the property. Now again this is three of the seven costly mistakes, so stay tuned for the second video while we go ahead and go through the other costly mistakes, which could save you thousands of dollars. Again my name is Edwin with Plugin realty, you can contact us directly at 1-888Plugin-8 you can also visit our website at www.pluginreality.net. Thank you!