Owning and managing properties can provide a steady stream of income and potential for long-term appreciation of your property. The job also requires significant management and upkeep, regardless whether they are residential or commercial buildings. Below are some tips on how to avoid the rookie pitfalls other new landlords have fallen into. This post is brought to you by Vreeland New Jersey Property Owners Insurance.
Over-leveraging rental properties. Borrowing as much money as you may seem like a great short-term fix, but you will then leverage yourself out of any monthly cash flow. Any vacancy or unexpected property maintenance expense could put you in the red.
Failing to properly screen tenants. When it comes to locating tenants, conflict and issues can arise. Ideally, you want to lease to the most fiscally responsible tenants possible. Make sure to verify employment, current and past rental history, and a thorough background/credit check. Although it may be more work initially, you will be thankful in the end.
Ignoring your rental properties. Once they are filled, and the rent checks come in, it is easy to leave tenants to their own doing. But procrastinating issues can lead to exponential long term problems that can cost you more in the long run, not to mention the unhappy tenants you’ll have on your hands.
Failing to serve tenant violations. Falling behind on rent is not an option when you are in the real estate investment business. Patience and compassion is a virtue, but if you are heading for the red, you must take action. Serve tenants quickly when their rent is not paid, so they know you will follow up.
For additional resources, take a look at New Jersey’s Landlord Association.
As a New Jersey business and property owner, you know how important it is to protect your investment with an insurance plan that takes into consideration the exposures your property faces. At Vreeland, we specialize in providing our clients throughout New Jersey with insurance solutions that address the risks business owners face when they purchase New Jersey property owners insurance. Contact us today for more information about our New Jersey property owners insurance programs.