Taking in tenants can be an effective way to earn passive income if you have a property you do not use. The additional funds are only one of the several benefits you may enjoy if you become a landlord.
However, you will also have crucial responsibilities as a landlord, and neglecting your duties may have costly consequences. To help you out, we highlight a few of the most common mistakes you should avoid once you have tenants for your properties.
Mistakes to watch out for
Implementing discriminatory housing policies is a mistake with critical consequences. In Florida, all residents have the right to rent or buy a place without consideration of their color, race, national origin or religion.
When screening potential tenants, it is wise to avoid asking queries that may seem discriminatory. These questions may involve the applicant’s gender, marital status, race or ethnicity.
Another common mistake most landlords make is failing to disclose required information about the property. When a person shows interest in your place, you have a responsibility to tell them critical things about the property before they sign any agreement.
For example, you must tell an applicant if there are sex offenders living in the vicinity. You should also disclose if the place has a mold problem or if there have been deaths in the home.
Remember that failing to disclose this information may lead to lawsuits and put tenants at risk.
How these mistakes can impact your finances
These errors can have crucial legal ramifications and discourage people from moving into your home. Current tenants may even move out after learning of new information you should have provided before they signed their agreements.
If no one moves in, you will be left with a property that is of no use to you since you are not earning profits.