Being a landlord in East Anglia can be rewarding, but it also comes with challenges. Many landlords, whether first-timers or seasoned investors, make costly mistakes that impact their rental income, tenant relationships, and even legal standing. To help you avoid these pitfalls, we’ve outlined the biggest mistakes landlords make and how to steer clear of them.
1. Setting the Wrong Rent
The Mistake: Pricing your rental property too high or too low can cause issues. Overpricing leads to longer void periods, while underpricing leaves money on the table.
How to Avoid It: Research similar properties in your area and take advice from a professional letting agent. Keep an eye on market trends and adjust accordingly. If your property stays vacant for too long, reconsider your pricing strategy.
2. Not Vetting Tenants Properly
The Mistake: Accepting tenants without conducting proper checks can result in late payments, property damage, or legal trouble.
How to Avoid It: Always conduct thorough tenant referencing, including credit checks, employment verification, and previous landlord references. Online tenant screening tools can also help you assess potential renters objectively.
3. Failing to Keep Up with Legal Requirements
The Mistake: Landlord regulations are constantly evolving. Missing important legal obligations such as gas safety checks, EPC requirements, and deposit protection can lead to fines or even criminal charges.
How to Avoid It: Stay informed about landlord laws and compliance. Set calendar reminders for key deadlines, subscribe to landlord newsletters, and consider seeking legal guidance if needed.
4. Ignoring Property Maintenance
The Mistake: Neglecting maintenance issues can lead to bigger repair costs and unhappy tenants who may leave or take legal action.
How to Avoid It: Respond to maintenance requests promptly. Regularly inspect your property and budget for ongoing maintenance costs. A proactive approach prevents minor issues from turning into expensive repairs.
5. Not Having a Contingency Fund
The Mistake: Many landlords underestimate the cost of running a rental property. Unexpected expenses like emergency repairs or void periods can quickly eat into profits.
How to Avoid It: Set aside a contingency fund to cover unforeseen costs. A good rule of thumb is to keep at least three months’ worth of rental income saved for emergencies.
6. Handling Evictions Incorrectly
The Mistake: If a tenant stops paying rent, some landlords make rash decisions like changing the locks or pressuring tenants to leave, which is illegal.
How to Avoid It: Follow the correct legal eviction process. Issue the appropriate notice (such as a Section 21 or Section 8) and seek legal advice if necessary. Acting legally and professionally will protect you from hefty fines.
7. Failing to Communicate with Tenants
The Mistake: Poor communication can lead to misunderstandings, disputes, and unhappy tenants who may leave negative reviews or report you to authorities.
How to Avoid It: Maintain a professional and responsive relationship with tenants. Set clear expectations from the start, provide multiple contact methods, and respond promptly to queries or concerns.
8. Managing the Property Yourself When You Shouldn’t
The Mistake: Some landlords try to manage everything themselves but struggle with time constraints, legal complexities, or tenant issues.
How to Avoid It: If managing the property becomes overwhelming, consider whether outsourcing certain tasks like maintenance coordination or rent collection could make your life easier. Having a trusted professional handle specific aspects can free up your time while ensuring the property is well looked after.
Final Thoughts
Avoiding these common landlord mistakes can save you time, money, and stress. Whether you self-manage or use a letting agent, staying informed and proactive will help you maximise your rental income and keep tenants happy.
Article by Andrew Overman | Partner | Location Location East
