5 of the biggest mistake landlord make

5 of the Biggest Mistake landlord make Although it's almost unavoidable that you'll make some blunders as a new landlord, we're here to guide you through the process and ensure that you don't make the same mistakes too often. If you have any query regarding selling or buying house please contact Cash Home Buyers anytime. Here are five of the most common missteps to avoid, as well as some tips on how to avoid them.

1. Failing to protect the tenant's security deposit.

This is at the top of our list because it has the potential to be the most costly mistake of all. Tenants are required to be provided with certain Prescribed Information and their deposits must be secured in one of three governmentbacked schemes within 30 days of receiving them. If you neglect to do this, or if you don't do it correctly, you may be obliged to compensate the tenant with three times the amount of the deposit. Simply utter the word, and Upad will protect your deposits on your behalf, allowing you to rest assured that everything has been completed correctly.

2. Failing to obtain landlord insurance If there is an accident on your property, this could turn out to be yet another very expensive error to make. A standard homeowner's insurance policy will not suffice if you are renting out your home; instead, you will need a landlord insurance coverage. It doesn't matter if your property is rented out without furnishings and your buildings insurance is provided by your freeholder; you still need public liability insurance in case a tenant is injured and sues you for your negligence. A simple online search will yield the names of a plethora of brokers who specialise in landlord insurance. Visit this page to learn more about Upad's Landlord Insurance.

3. Getting Closer to the Situation Expensive fixtures and fittings, art work, and scatter pillows are all examples of how too many landlords treat their rental properties as if they were their own residences. Not only would this reduce your profits, but it may also deter tenants from renting from you because your taste (however fantastic) is unlikely to match theirs in the first place. This isn't a personal matter; it's a business matter.

4. Treating Tenants as if they were best friends

Keep this slogan in mind: "Tenants are NOT my new best friends." By doing so, you'll avoid the trap that many landlords fall into, which is becoming too friendly with their tenants and finding it difficult to be firm when anything goes wrong. Imagine trying to remind your pal that they owe you ten pounds, and you'll understand how tough it will be for you to chase your tenant for rent arrears if you've become bezzie mates with your landlord. Maintain a friendly yet professional demeanour, and you should be alright.

5. Failure to conduct regular inspections While it may be tempting to consider your job done after your new renters have moved in and to do nothing more than ensure that their rent is deposited into your bank account on a monthly basis, you should actually keep a tight eye on your investment. You've probably heard horror stories of tenants turning rental properties into cannabis farms and brothels. While it's highly unlikely that this will happen to your property, you should aim to do routine inspections at least once every six months to look for evidence of damage or wear and tear. While the vast majority of tenants will quickly notify you of any difficulties, you cannot rely on them to do so, and at the end of the day, it is your investment, not theirs, that is at risk of loss.