Mistakes are impossible to avoid; we’re human, and as humans we are never as perfect as we’d like to be. 

It’s okay to make mistakes, but when it comes to renting out your property in Eureka and Arcata, you want to be careful about the mistakes you make. They can be costly and detrimental to the profitability of your investments. 

New landlords are especially prone to mistakes, but we see plenty of experienced investors making the same mistakes over and over again. Here are the 5 most common costly mistakes that landlords make in our region, and how you can avoid them.

1. Deferred Maintenance in Eureka Rental Homes

One of the fastest ways to lose money and compromise the quality of your home is to defer your maintenance and repairs. 

Deferred maintenance describes any repairs that you put off because you don’t want to spend the money or take on the work right now. It’s a mistake because it only leads to larger and more expensive maintenance issues. 

There’s also the danger of unreported maintenance, which is when your tenants do not immediately report that something is wrong at your rental property. 

If you put off repairs or you don’t hear about a leaking sink for a few months, the repairs you’re called upon to make will always be more expensive. Think about that slow leak under a sink. If it becomes a major plumbing disaster, you’re not only looking at the cost to remove and remediate the water damage, you’re also putting your property at risk for collecting mold. That’s another maintenance issue entirely. 

Deferred and unreported maintenance are costly mistakes. You can protect yourself and your property against this by:   

• Explaining to your residents that it’s important they report repair needs right away. Help your tenants to understand that everything should be documented and reported, even if it’s a small issue. 
• Conducting thorough, well-documented inspections during the move-in and move-out process. A maintenance walk through during the tenancy is also a good idea.
• Putting together a preventative maintenance plan so you can have all of your major systems and functions inspected and serviced. Have the heating and cooling system inspected and serviced annually. Get the roof and the gutters cleaned annually. Hire a pest control service to do routine treatments. 

Responsive maintenance can help you avoid the mistake of deferred maintenance. It also saves you a lot of money.

2. Inadequate Tenant Screening in Arcata 

Tenant screening is one of the most important things you’ll do as a landlord. Your rental experience depends on placing a qualified tenant who pays rent on time, helps you take care of the property, and follows the terms of the lease agreement. 

You won’t find that tenant without a thorough screening process. 

Forget trusting your instincts. You need a documented and consistent screening process so you can carefully check the background and financial stability of each potential tenant without violating any fair housing laws. Establish standard rental criteria and document your process. 

• 
  Check national eviction and criminal databases
• Look at credit reports.
• Verify income.
• Check rental references 

Don’t skimp on tenant screening. Be thorough and get some help online or from professional property managers if you don’t have the necessary resources. 

3. Not Understanding California Rental Laws

This is a big one. A legal mistake will cost you several thousands of dollars and a lot of frustration. As a landlord in California, you need to understand and follow:

• 
  Rent control laws
• Fair housing regulations (state laws are stricter than federal laws)
• Security deposit restrictions and timelines
• Eviction protocols
• Habitability requirements

You need to know the laws in order to understand them. If you’re not sure what the difference is between a service animal and an emotional support animal, you’ll need some help. If you cannot distinguish between normal wear and tear and tenant damage, seek the advice of a property manager. 

4. Ignoring Tenant Relationships 

You don’t want to be best friends with your tenants, but you do want to establish a positive and professional relationship with your renters. When you are open, communicative, and responsive, your tenants will feel comfortable coming to you with problems and concerns. When you’re responsive to their maintenance requests, no matter how minor, they’ll trust that you care about their comfort. 

A good tenant relationship increases the likelihood that rent will be paid on time. It reduces the risk of property damage and lease violations. 

Most importantly, it allows you to focus on tenant retention. Vacancy is expensive, and you don’t want to lose additional money paying for expensive repairs and cosmetic updates during turnovers. Keep your tenants by establishing a good relationship.

5. Not Allowing Pets is an Expensive Mistake 

Pets can be an issue for landlords in Eureka and Arcata. We understand that it can feel risky to allow pets into your property, especially if you’ve just replaced the carpet or installed some shiny new floors. 

However, pets make more money for rental property owners. When you don’t allow them, you can potentially lose a lot of money on your investment property. 

More than half of the renters in Eureka, Arcata, and the surrounding areas have at least one pet. So, if you don’t allow pets, you’re cutting out half of your potential tenant pool. Pet owners also tend to stay in their rental homes longer, so when you have a tenant with pets, you can cut down on turnover costs as well as vacancies. 

There’s also the financial rewards of pets. When you allow pets, you can charge a pet fee. You can also charge pet rent. This immediately increases the rental value of your property.