How to Find Good Tenants in Orlando- 5 Tips
In this article, we will discuss five of the most common mistakes new landlords make. If you find yourself in a position that you become a landlord by default you will more than likely make mistakes. This career choice does not come naturally in a world where bad things happen to good people( this happens on both sides of the landlord/tenant equation).
Mistake #1| Know the Florida Landlord/Tenant laws!
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Knowing all the laws completely is impossible, so let me explain why. You may think an experienced lawyer can tell the know how a judge will Rule in court, just ask an experienced one(I have). A lawyer will explain to you that judges today do not rule by his or her understanding of the Florida Landlord law, but by case law in the previous ruling by Florida Judges. Earlier this year the Federal Government passed a law that Landlords may not deny a person because he or she has a criminal record. How can a new landlord know all the laws? There are laws each landlord must obey about credit scores, evictions(that is a major headache), discrimination and deposit refunds. A very good lawyer will tell you if you end up in court in front of a judge it often cost the Landlord. Repeatedly this happens because the three-day-notice was done improperly. Ask a lawyer to explain and he will talk for several minutes and I guarantee you will think twice about serving three-day notices without help.
Mistake #2 | Maintaining Expense Account for Repairs.
The day will come when your income property needs a roof and a new A/C system and it always happens at the worst time in your life. Often people call this “Murphy’s Law”. New investors often learn how to be a landlord from being in the school of hard knocks. A person who manages a property from out-of-state will sell the house sooner or later. Typically eighty percent of businesses will fail in five years and in the case with out-of-state landlords the statistics are higher. If your property needs paint, roof, and AC you will not get a good tenant.
Mistake #3| Buying an income property because the price was cheap.
Do you believe from the bottom of your heart the will still be a housing shortage three years from now causing prices to keep going up? I can argue on either side. The median household income has declined slightly the last five years, plus many rentals have forced families to pay much more than they afford. As a “rule of thumb,maybe” a renter’s take-home pay should be three times their housing cost. As a landlord, if you have tenants considered low-income it is probably just a matter of time before they start telling you a thousand reasons why they cannot pay rent. Landlords who rent in high crime areas must fight in order to collect his rent. These landlords seldom reap the benefits of property appreciation and this is the sweet spot in investing.
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