Top 10 Mistakes Landlords Make (and How to Avoid Them)

Becoming a landlord can be rewarding—but it also comes with its share of risks and responsibilities. Whether you’re managing one rental unit or a portfolio of properties, avoiding common pitfalls is key to protecting your investment and keeping tenants happy. Here are the top 10 mistakes landlords often make—and how you can avoid them.

1. Skipping Tenant Screening

The Mistake: Renting to the first interested applicant without checking their background.
Why It’s Risky: Bad tenants can lead to late payments, property damage, or even eviction.

✅ Avoid It: Always conduct thorough background checks—credit score, employment verification, rental history, and criminal record.

2. Not Using a Written Lease Agreement

The Mistake: Relying on verbal agreements or generic lease templates.
Why It’s Risky: Ambiguity can lead to disputes about rent, duration, and responsibilities.

✅ Avoid It: Use a legally sound lease agreement tailored to local laws, and have both parties sign it.

3. Neglecting Regular Maintenance

The Mistake: Delaying repairs or ignoring minor issues.
Why It’s Risky: Small problems can escalate into costly repairs or tenant dissatisfaction.

✅ Avoid It: Schedule regular inspections and create a preventive maintenance plan.

4. Setting the Wrong Rent Price

The Mistake: Overpricing or underpricing the property.
Why It’s Risky: Overpricing drives tenants away; underpricing affects profitability.

✅ Avoid It: Do a comparative market analysis to set a competitive rent.

5. Failing to Understand Landlord-Tenant Laws

The Mistake: Ignorance of legal obligations.
Why It’s Risky: Can lead to lawsuits, fines, or tenancy tribunal complaints.

✅ Avoid It: Stay informed on local rental laws, eviction procedures, and tenant rights.

6. Poor Communication with Tenants

The Mistake: Being unreachable or unresponsive.
Why It’s Risky: Damages trust, increases frustration, and may affect lease renewal.

✅ Avoid It: Maintain open and professional communication. Use email or property management apps to track issues and updates.

7. Not Collecting a Security Deposit

The Mistake: Skipping the deposit to attract tenants faster.
Why It’s Risky: No financial safety net for damages or unpaid rent.

✅ Avoid It: Collect a fair, refundable security deposit and document the property’s condition before move-in.

8. Doing Everything Yourself

The Mistake: Micromanaging every task to save money.
Why It’s Risky: Leads to burnout, poor decisions, and inefficiencies.

✅ Avoid It: Hire a reliable property management company or delegate specific tasks (like legal, repairs, or rent collection).

9. Not Keeping Financial Records

The Mistake: Mixing personal and rental finances or skipping documentation.
Why It’s Risky: Leads to tax issues and poor tracking of income vs. expenses.

✅ Avoid It: Maintain accurate records and use rental accounting software or consult a professional.

10. Delaying Eviction When Needed

The Mistake: Hoping problem tenants will improve without action.
Why It’s Risky: Late rent and property damage can pile up.

✅ Avoid It: Know your legal rights and act promptly and lawfully to remove problematic tenants.

Final Thoughts

Property management is a balancing act of legal, financial, and people skills. Avoiding these common landlord mistakes can save you time, stress, and money. And if it all feels overwhelming, consider partnering with a professional property management company that can handle everything—from tenant screening to maintenance—while you enjoy peace of mind.