Becoming a landlord can be exciting and profitable—but it also comes with challenges that many first-time property owners don’t expect. From tenant screening to maintenance planning, even small missteps can lead to costly issues down the road. The good news? With a little knowledge and preparation, you can avoid the most common pitfalls and set yourself up for long-term success.
Here are the five most common mistakes new landlords make—and how to avoid them.
1. Skipping a Thorough Tenant Screening Process
Many new landlords feel pressure to rent quickly, but accepting the first applicant without proper screening is one of the most expensive mistakes you can make. A tenant with poor rental history, unstable income, or past evictions can lead to late payments, property damage, and even legal headaches.
How to avoid it:
✔ Run full background, credit, and rental history checks
✔ Verify employment and income
✔ Contact prior landlords
✔ Use consistent, fair criteria for all applicants
A strong screening process protects your investment from day one.
2. Underestimating Maintenance and Repair Costs
New landlords often assume expenses will be minimal—until the first major repair pops up. Neglecting maintenance or delaying repairs can cause bigger issues, unhappy tenants, and lower property value.
How to avoid it:
✔ Set aside 8–10% of annual rent for maintenance
✔ Address repairs promptly
✔ Schedule seasonal inspections
✔ Keep reliable vendors on standby
Proactive maintenance keeps your property in top condition and your tenants happy.
3. Not Understanding Local Landlord-Tenant Laws
Laws vary widely by city, county, and state, and failing to comply—even accidentally—can lead to fines or legal disputes. Common issues include improper notices, security deposit mistakes, and incorrect lease terms.
How to avoid it:
✔ Research your state and local housing laws
✔ Use legally compliant lease agreements
✔ Document all communication and inspections
✔ Seek professional property management support if unsure
Knowledge of local regulations is non-negotiable when owning rental property.
4. Setting Rent Too High or Too Low
New landlords often price their rental based on emotion or guesswork. Overpricing leads to vacancies, while underpricing leaves money on the table and attracts less-qualified tenants.
How to avoid it:
✔ Conduct a market rent analysis
✔ Compare property features, location, and condition
✔ Adjust rent annually based on market trends
✔ Consider partnering with a professional manager for accurate pricing
The right rent price reduces vacancy and boosts ROI.
5. Trying to Manage Everything Alone
Many first-time landlords underestimate the time, effort, and expertise needed to manage a rental property. From late-night maintenance calls to lease enforcement, self-management can quickly become overwhelming.
How to avoid it:
✔ Consider hiring a professional property manager
✔ Outsource tasks like maintenance, inspections, and tenant communication
✔ Use technology and automation when possible
✔ Treat your rental like a business, not a hobby
A qualified property manager handles the heavy lifting—so you don’t have to.
Final Thoughts
Mistakes are part of learning, but when it comes to rental property, the wrong moves can be costly. By understanding these common pitfalls and taking proactive steps to avoid them, you can protect your investment, attract reliable tenants, and enjoy a far more stress-free landlord experience.
At Simply Home Realty, we help new and experienced landlords navigate every step of the rental process with confidence. If you’re ready to simplify property ownership, we’re here to help.
