7 Landlord Mistakes You Never Knew You Were Doing

12/03/2019

7 Landlord Mistakes You Never Knew You Were Doing

thumb’s down for the landlord

Tenants have their own difficulties when dealing with landlords prior to moving, and during their occupancy. On the other hand, landlords have their hands full when it comes to finding the right tenant. In this guide, landlords will know the common mistakes costing them money, and potentially degrading their properties.

Not Using a Well-Drafted Tenancy Agreement

A good tenancy agreement should adequately protect the landlord’s interests with regards to the rental property. Typically, a general agreement will cover common rental issues such as liability for property damage. However, landlords cannot claim against specific issues that the a greement does not list in black and white; for example, whether or not the tenant should pay interest for late payment of rent caused by their monthly salary not being banked in on time.

Poor Rent Collection Practices

As per the tenancy agreement, landlords can enforce their rent collection rules. Responsibility for that falls on their shoulders, and if they are lax about it, they may face unwanted consequences. For example, tenants may grow complacent if their missed payments have no negative repercussions, and they may become   disrespectful tenants. In such a case, landlords stand to lose not just money; they will also lose time, energy, and face by arguing with their tenants.

Not Addressing Tenant Requests and Issues Promptly

As tenants are “customers” of the landlords, the latter should be mindful of responding to the former’s requests and issues in a timely and efficient fashion. This means undertaking any necessary major repairs, servicing, and maintenance for property faults that are detected before tenancy occurs. For example, if the tenant detects an air-con leak during the pre-move-in inspection, the landlord should rectify that problem as soon as possible.

During tenancy, tenants may report to their landlords any significant defects (e.g. crack in the ceiling) that are not caused by themselves. While landlords may not be obliged to perform any property servicing, reparation or maintenance during tenancy (especially not if the tenant caused the problem), in such cases, they should strive to resolve those issues promptly; and in accordance with the relevant terms of the tenancy agreement.

No Site Inspections Prior to Tenant Move-In

As the landlord, you should note your property's condition before letting tenants move in. Do so by taking photographs of the major areas (e.g. living room, bedroom, and kitchen), and maintaining an Excel spreadsheet of the names and quantities of any provided furniture. By doing so, you will be able to rightfully claim from the tenant’s security deposit to cover any tenant-caused property damage that may appear later.

Not Knowing Your Rights as a Landlord

As a landlord, you can demand security cash deposits worth up to 1- 2 months' rent before your tenants move in. You may also end the tenancy agreement prematurely; but you will have to pay the tenant a certain sum as per the tenancy agreement. Knowing your landlord rights can pre-empt unwanted bickering with tenants over rental terms and conditions.

Face-Value Tenant Screening

Some landlords just interview tenants and, using their personal judge of character, decide to let those tenants rent. A more thorough assessment can be made by looking at other factors, such as work background, income levels, credit screening, etc. However, such additional information may not be readily accessible to landlords. Filling this informational gap are rental deposit guarantors (e.g. Sing-Guarantee). During the application process, such guarantors would have already conducted a credit assessment of the tenant, and internally approved to underwrite the tenant's risk; thereby helping the landlords secure better-quality tenants.

Still Using Security Cash Deposits

Singapore is one of the world's most expensive cities to live in. Therefore, pricey security cash deposits (e.g. those worth 1-2 months’ rent) worsen the already significant financial stress that tenants face during their time in the Lion City. As a result, you may be having few or no tenants because they are deterred by the security cash deposit.

With Sing-Guarantee’s rental deposit guarantee, you are more likely to attract tenants. This is because our Swiss-standard rental guarantee can help would-be tenants avoid locking a significant sum (of their moving budget) in the traditional security cash deposit. In this way, you as the landlord will also benefit financially in the long run; you will not have to spend money maintaining empty property!

 

Need more details on how Sing-Guarantee works? Visit this page on our website for more information on how landlords benefit from our service.

 

 

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