Here are seven common rental myths new Austin landlords should know before buying property.
1. A Good Credit Score = Qualified Tenant
A credit score is one factor you should consider when screening for future tenants, but it shouldn’t be the only one you assess. While a credit score will tell you about any late payments, loans, and debts the potential renter will have, it doesn’t tell you everything. You should also ask for a reference and interview the tenant to better understand who they are outside of their financial situation.
2. Austin Landlords Can Increase Rent At Any Time
This myth is a half-truth since it will depend on your region and its legal considerations. If there is a lease agreement, you can only increase the rent at the end of the lease unless you include a clause regarding rent increases in the lease. You will need to provide your tenant with a written note at least 30 days in advance for month-to-month rental contracts.
3. Austin Landlords Can Enter The Rental Property at Any Time
While the property is yours, tenants have the right to privacy. Some counties or states require you to provide tenants with a 24 to 48-hour notice. You have to show proof of notice if you need to come in for repairs, maintenance, or to show a place to new tenants. The only exception is an emergency like flooding or a gas leak.
4. Tenants Behind on Rent Can Be Evicted
The most common reason for tenant eviction is due to late or missing rent payments. And while the situation sucks, you can’t kick the tenant out. It’s quite a lengthy process. First, you need to check with the local eviction laws in your area. Most will tell you to give your tenant a formal notice asking for a payment by a specific date or to move out. If that doesn’t fix it, then you have to file the eviction with your local court.
5. The Security Deposit Will Cover Wear and Tear
Even the best tenants will leave slight wear and tear since it’s just a regular occurrence. And due to that reason, you can’t use their security deposit to cover any related expenses associated with it. As a landlord, you need to know the difference between tenant damage and normal wear and tear.
6. Non-Qualified Tenants Are Better Than No Tenants
This myth is a very commonly heard myth, and it’s false. Lowering your standards to get tenants in your property is not a risk worth taking. A vacant property will cost you money, but bad tenants will cost you more, whether it’s evictions or property damage. Instead, reaching out to a property management company that can market your property is a better use of your money.
7. Austin Landlords Are Responsible for Repair and Maintenance.
This one is tricky because it can be true and false. Any damage to the property by tenants is not your responsibility to fix. But fixing any plumbing, heating, or electrical is your responsibility. It’s essential for the landlord and the tenants to be aware of who is responsible for what. If there are specific tasks you want to assign the tenant, make sure it’s clearly outlined in the lease agreement.
If you need help leasing your place or want to become an Austin landlord, contact Prism Realty today! We’re here to offer our expertise and help you achieve your real estate goals.