The Top 5 Landlord Mistakes to Avoid Pawtucket RI

With equal parts hard work (which you'll have to do yourself) and knowledge/expertise (read on), being a landlord can be a fast track to passive income and wealth accrual. If you want to be a successful landlord, there are several mistakes you should avoid, read on to know these 5 mistakes.

Kristin N. Matsko
(401) 272-6300
120 Wayland Ave, Suite 5
Providence, RI
Specialties
Elder Law, Estate Planning, Real Estate, Business, Landlord & Tenant, Probate
Education
Roger Williams University School of Law,The Pennsylvania State University
State Licensing
Massachusetts, Rhode Island

Daniel T Blake
(508) 222-0182
89 N MAIN ST
ATTLEBORO, MA
Specialties
Estate Planning, Landlord & Tenant, Business, Probate, Land Use & Zoning, Wills
Education
Suffolk University Law School,Colby College
State Licensing
Massachusetts

Kristin N. Matsko
(401) 272-6300
120 Wayland Ave, Suite 5
Providence, RI
Specialties
Elder Law, Estate Planning, Real Estate, Business, Landlord & Tenant, Probate
Education
Roger Williams University School of Law,The Pennsylvania State University
State Licensing
Massachusetts, Rhode Island

Azar Louis E
(401) 725-7765
255 Main St
Pawtucket, RI
 
Condon Rae B Atty
(401) 272-1558
Pawtucket, RI
 
Bruce E Thompson
(508) 431-3910
8 N MAIN ST STE 403
ATTLEBORO, MA
Specialties
DUI, Speeding Ticket, Wills, General Practice, Car Accident, Slip and Fall Accident, Litigation, Landlord & Tenant
State Licensing
Massachusetts

Peter T. Clark
(508) 339-2211
200 CHAUNCY ST STE 100
MANSFIELD, MA
Specialties
Corporate, Residential, Wills, Probate, Elder Law, Land Use & Zoning, Landlord & Tenant, Contracts, Construction, General Practice
Education
Roger Williams University School of Law,University of New Hampshire
State Licensing
Massachusetts

Donatelli Peter
(401) 272-1400
1080 Main St
Pawtucket, RI
 
Katz Henry H
(401) 724-6700
716 Central Ave
Pawtucket, RI
 
Gladstein Bruce Law Office
(401) 722-9900
750 East Ave
Pawtucket, RI
 

The Top 5 Landlord Mistakes to Avoid

Tenants worldwide dream of becoming homeowners, and homeowners dream of becoming landlords — expanding their real estate ownership while someone else pays the bills. This dream is not hard to realize, but that doesn't mean it is without pitfalls and easy-to-make mistakes. That said, with equal parts hard work (which you'll have to do yourself) and knowledge/expertise (read on), being a landlord can be a fast track to passive income and wealth accrual.

Landlord Mistake 1: Over-Leveraging Your Rental Properties

It's a classic error which is made by not only real estate investors, but also homeowners. Whatever the bank says they're willing to lend, borrowers typically take their highest offer. While this mistake may not cripple you with your home mortgage, over-leveraging your rental properties is a drastically different story. With rental properties you have far less control over the associated expenses. For example, if you own five rental properties, and suddenly three of the tenants decide to move — or worse, just stop paying their rent — you will suddenly find yourself with not only your home mortgage, but three additional mortgages to pay. If that isn't bad enough, you will also be faced with eviction costs, repair and maintenance costs, advertising costs, etc. As a general rule, you want your predictable monthly expenses (mortgage, taxes, insurance, legal entity fees, ground rents, etc) to be no more than 50% of your collectable rent.

Landlord Mistake 2: Signing a Generic Rental Agreement

The cheap and easy thing to do is to scrounge up a free generic rental agreement online, or buy a boilerplate lease for a few bucks at the office supply store. But guess what? The second your tenant decides they don't feel like paying you anymore — and starts looking for ways around it — they can simply sue you for failing to include necessary addendums or disclosures (such as national, and state, mandated lead paint disclosures). They could also target your failure to use a state-specific rental agreement with state-required clauses, or maybe for writing in unlawful fees, security deposits, and so on for your state. There are two ways to get a lawful rental agreement for your state. Your should either hire a local real estate attorney who is well versed in landlord-tenant law, or use a quality online service that helps you through the process of creating a rental agreement for your specific state.

Landlord Mistake 3: Failing to Research Rental Applicants

Most landlords simply want the perfect tenants to show up, sign a rental agreement, then pay their rent on time all while keeping the rental property in pristine condition. Reality check: this is a fantasy. Most rental applicants aren't going to follow this idealized pattern, but you can maximize your chances of finding the good ones by doing your homework. Start by verifying their income and employment (to see if they CAN pay), pull a credit report (to...

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