4 Common Mistakes Accidental Landlords Make in Crestview (And How To Avoid Them)

First, let’s talk about what makes you an ‘accidental landlord’. You are considered an accidental landlord if you are having to turn your home into a rental property by necessity more than choice. For example, if you’re PCSing away and can’t sell your home, you rent it out to cover the mortgage but never intentionally wanted to be a real estate investor. Now, since this is your first time having a rental property, I want you to be aware of common mistakes that we see frequently. In this article, we’re going to go over the common mistakes that Crestview accidental landlords make and how to avoid them.

1. Skipping Professional Tenant Screening in Your Rental

One of the most important things when it comes to having a rental property is screening tenants. If you skip having strong qualifications, then you are likely to place a poor tenant that won't pay on time and not take care of the home. 

Here’s what you should be looking out for when screening tenants:

• FICO credit score

• Income to rent ratio

• Rental history

• Criminal background

Click here to read our article on what red flags to look out for when screening tenants.

Remember, when screening tenants, be sure to hold every prospective tenant to the same qualifications to remain in line with fair housing laws.

2. Underestimating the Value of a Solid Lease Agreement

Now that you have a qualified and approved applicant, it’s time to send them a lease agreement. 

It’s important to send a strong lease agreement, not something that is bare bones that you got online.

You should at minimum have the following in your lease agreement:

• When rent is due

• Fees disclosed (Late fees, pet fees, etc)

• Responsibilities of each party (Who covers lawn care, utilities, maintenance)

• How many people are allowed at the property

• How soon do they have to provide a notice to vacate

Although these may seem redundant or unnecessary, they are super important when you need to refer to the lease agreement.

Your tenant may come to you and say “Well I thought that rent was due on the 15th, not 1st”, and if you cant reference it in your lease agreement then you have no argument.

We also HIGHLY RECOMMEND that you consult with your attorney about your lease agreement and have them review it before using it. You may have illegal clauses or not even a legal lease agreement with your current draft. Remember that a lease agreement is a legally binding document and needs to be treated as such.

3. Neglecting Florida Landlord-Tenant Laws

There are a ton of laws when it comes to having a Crestview rental property. Here are just a few:

• Fair housing laws

• ESA/SA laws

• Warranty of habitability laws

• Security deposit laws

Now, does it really matter to know these laws? Yes! For example, let’s say that you violate the warranty of habitability laws because you didn't fix an HVAC system in 90 degree weather in a reasonable time.

This may allow the tenant to come after you for rent abatement, hotel reimbursement, and damages if they choose to file suit against you.

Another example is if you don’t follow the security deposit guidelines. If you don't provide your notice of intent to claim deductions in time, your tenant can avoid having anything deducted from their deposit at all.

Click here to read our article on Florida Landlord/Tenant Law Basics Every Landlord Should Know.

Remember, ignorance is no excuse when it comes to the law so please be sure to be as educated as possible when it comes to all laws related to owning a rental property in the area.

4. Not Handling Maintenance Correctly or At All

Maintenance is one of the most important factors to the success of a rental property. Completing maintenance keeps tenants happy and keeps the home in good condition.

Not completing maintenance can lead to unsatisfied tenants, which lead to non-renewals and vacancies. Now, I understand and acknowledge that you may want to save money and not complete repairs but trust me it will hurt you in the long run.

Here’s a simple breakdown that we personally use here at Kuntz Property Group:

Would you rather spend $500.00 on a repair or have your tenants non-renew their lease? The simple answer is completing the repair because the cost of loss rent and turn-over can be $3000+ dollars. So please do yourself a favor and complete that repair, keep your tenants happy and comfortable.

On average, you should expect to spend around 5-10% of your annual rent on maintenance depending on the condition of your home and if you have any deferred maintenance.

Example: Annual rent: $24,000 ($2000/Month) x 5-10% = $1200-$2400

Conclusion: 

These are just a few common mistakes that we see, and there are many more. It’s important to educate yourself on what’s involved in having a rental property and to set the proper expectations with yourself. 

This definitely can be overwhelming but don't worry - we’re here to help!

Here at Kuntz Property Group, we are knowledgeable of all of the laws current and upcoming so that you don’t have to if you hire us. You also get legal support with our property management services with access to our industry expert Attorney. 

Tenant doesn't comply with the lease? We handle that. 

Tenant doesn’t pay rent and needs evicted? We handle that. 

Tenant tried to dispute? We handle that.

Hiring Kuntz Property Group is the wise choice for accidental landlords looking to have the legal burden of a rental property handled for them. It gets even better though - we handle everything else too since we’re a full-service professional Crestview property management company. This includes marketing, leasing, maintenance coordination, inspections, legal support, rent collection, accounting, literally everything when it comes to the management of your property! Click here to schedule a free consultation or to receive a free rental analysis!