7 Costly Mistakes of do-it-yourself landlords

I handle leasing for property owners all the time. Coldwell Banker Platinum Properties can be engaged as property managers if an owner wishes to hire a service who will collect rents, handle repair calls, perform monthly accounting and disbursements and render an annual statement to the owner for tax purposes.

What my conversations with "mom and pop" landlords have revealed is that many are either managing the way they did it 20 years ago, being oblivious to changing laws, or are renting their properties under market.

The top 7 mistakes are

1. Knowingly or unknowingly Violating Federal Housing Laws (big fines): Improper description of property or desired tenant in their advertising. Tenant selection based on one of the protected classes

2. Not keeping up with State and City laws regarding code requirements: Surprisingly, many rental properties are still without smoke detectors or carbon monoxide detectors. Starting January 1, 2014, a NEW law regarding smoke detectors goes into effect. Call me to find out what it is.

3. Not giving tenants proper notice of rent increase or termination: Tenants who have rented the property for more than a year must be given 60 days, not 30 days

4. Improper or late refund of security deposits (big fines): Oy! Refunds must be given within 21 days of the tenant vacating the property, and with a full accounting of any deductions.

5. Failing to update properties in step with the surrounding market area: It should be a given business philosophy but apparently escapes some property owners

6. Under or over pricing rent rates (loss of rent or lengthy vacancy): Know what your property is worth and what it isn't. Why wait for the perfect tenant (in your eyes) when you can rent to a good tenant sooner?

7. 20/20 hindsight tax planning when selling: Call your accountant or call Sylvia Jonathan for enlightenment and saving money

Call Sylvia Jonathan at (714) 856-7003 if you wish to discuss selling, leasing or managing a rental property.