It's difficult not to beat yourself up if you're a new landlord and you've made a mistake. Before you critisize yourself and question why you came into this business, understand you are likely not the first person to have made this mistake. Successful individuals lock up their self-destructive emotions and substitute it with strength and stamina to look at the mistake, analyze it and make nessesary changes moving forward. Everyone makes mistakes, but if you can implement these changes your landlord/tenant interactions and business will run much more smooth.
Mistake #1 - Using Generic Rental Forms
Downloading a generic lease agreement found on the internet may save you money from not using an attorney, but you will end up paying for the negligence. After realizing the restrictions and permissions you set forth are not enforcable, you will be left spending time and money on a never-ending pile of normally managable tenant/landlord issues.
The Lesson?
Spend the money on an attorney who is experienced in tenant/landlord laws. Together create a unique, customized, and detailed lease agreement that addresses the features of YOUR property. With each prospective tenant go through the lease line by line. This ensures that there will be no confusion on what is expected from each tenant.
Mistake #2 - Being Too Lenient, or Lienent At All
Worrying about being the "nice guy" instead of running a business and you will soon find that you're no longer in charge. You've allowed excuses for late rent, failed to impose late fees, and are struggling to get in contact with delinquent tenant. Successful landlords have heard every excuse imaginable but don't offer any "wiggle room" to tenants. That does not make them bad people, they simple must look after their own wellbeing first.
The Lesson?
Keep your expections as a clear policy and strictly enforced. Late fees should be delivered on time as nessessary, as well as pay or quit notices on time and followed up on. There will be an increased effort by tenants to pay in full and on time once they realize you are not a pushover. You should have a head start on the eviction process if they don't.
Mistake #3 - Poorly Educated
Supposed you get into a disagreement with a tenant regarding the rental property. Both side are certain they are correct and when looking deeper on the issue, the findings show that the city ordience is in the tenants favor. Best case senario, the tenant sees you as ignorant of the laws. On the other end of the spectrum, you may have unknowing broken the law.
The Lesson?
A common business law applies here; whoever prepares best, wins. Learn as much as possible about the regulations, ordinances, and laws surrounding rental properties. Generic information will not work here - you must know the specifics of your state, from how often you can enter the property to making deductions on a security deposit. A loss of tenants, loss of money, and expensive legal battles could be the result of unintentionally violating the rights of tenants.
These mistakes and many more are commited by landlords every day. What seperates the seasoned landlords from the struggling rookies is reviewing the mistake, making a change, and enforcing it. Before long, you will be anticipating potential conflicts and reducing the possibility of their occurance.