Listen, no one’s perfect.
And no one expects you to be perfect, either. But, when you’re renting out a property in Las Vegas, you want to be as close to perfect as you can. That’s because it’s easy to make mistakes as a landlord, and even experienced rental property owners find themselves making errors and bad decisions. The problem is that these mistakes can usually be expensive.
Today, we’re talking about the top 10 mistakes that Las Vegas property owners always seem to make, and how to avoid them.
Let’s jump right into the countdown.
1. Fair Housing Mistakes and Other Legal Missteps
There’s no good way to resolve a fair housing mistake. The best way to deal with these is to avoid them.
Renting out a property in Las Vegas is not so legally perilous. We’re fairly landlord-friendly around here, and there are no strict rent control laws or detailed eviction requirements involved in our landlord and tenant laws. However, there are federal and state laws that need your attention and require your compliance. Even a tiny and unintentional mistake can have huge consequences.
You need to understand the habitability laws, security deposit laws, and fair housing laws. There are protected classes that you need to know, and it’s important to make sure that none of your advertising or marketing materials make it seem like you’d prefer one type of tenant over another. You need a consistent and documented screening process so you can demonstrate that each applicant is treated fairly and objectively.
Make sure you’re up to date on all the state, local, and federal laws. If you’re not, you could easily violate a regulation and find yourself in legal trouble.
2. Improper Las Vegas Rental Property Pricing
It’s easy to price your property incorrectly if you don’t have access to good market data. Most landlords fail to understand that your home’s rental value will depend largely on the strength of the Las Vegas rental market and the competing properties you find there.
To price your Las Vegas rental accurately, competitively, and profitably, make sure you know what the market demands and accepts. Take a look at what homes similar to yours are renting for in your neighborhood. You don’t want to underprice your property because that will only result in a loss from the beginning. It’s difficult to bounce back and bring your rents up to market levels. There’s also a danger in overpricing, however, because it can sit vacant, and that vacancy cost will be far more damaging than bringing the asking price down by $100 or so per month.
There are other factors that impact your rental value, and you have to consider them when pricing your home. Think about your property size and condition and its location.
3. Incomplete Tenant Screening
Invest in good tenant screening, otherwise you’re looking at a long string of mistakes in the not-so-distant future. You want to attract, place, and retain good tenants who pay rent on time, take care of your property, and contribute to a successful and stress-free rental experience. Only glancing at a credit report during the screening process could lead to chasing down late rent, paying for lingering damage and deferred maintenance, or having to evict.
A thorough screening process will start with consistent and established rental criteria that’s applied to every applicant. Document your process. Check national eviction and criminal databases, look at credit and financial stability, and verify income and employment. Check rental references. Don’t skimp on tenant screening.
4. Inconsistent Lease Enforcement
Your lease agreement is a written contract between you and your tenants. You have to enforce it and hold both yourself and your residents accountable to what’s included in that contract.
If rent isn’t paid on time and your lease includes late fees, make sure you charge those late fees. If smoking is prohibited and you notice the entire property smells like smoke, address that with your tenant during your next walk through. When you don’t allow pets but there are dogs running around the yard, you need to enforce your no-pet policy.
Tenants will appreciate knowing what’s expected, and they’ll also need to know you take the lease agreement seriously. Don’t make the mistake of not communicating, sharing your expectations, or enforcing the lease.
5. Missing Maintenance Needs
It’s a mistake not to invest in preventative services and routine repairs. Emergencies obviously require immediate action. When a tenant calls because the property is flooding, you need to take action right away to keep the property habitable.
You want to be just as responsive when there’s a routine repair request. This will protect your property’s condition and it will also keep your residents satisfied and increase your retention rates.
6. Choosing the Wrong Vendors and Contractors
Working with unlicensed and uninsured vendors is a huge mistake and an unnecessary risk.
Don’t try to make cheap fixes with your investment property. There is a way to complete maintenance work cost-effectively. A big part of that is hiring the right people to do it.
Working with professional vendors and contractors who are licensed, insured, and bonded has to be non-negotiable business practice when you’re renting out a Las Vegas property. Don’t make the mistake of seeking out the cheapest possible workers or using substandard materials when you’re attending to routine maintenance.
Don’t let tenants do their own work; this is also a huge mistake that we hope we didn’t actually have to mention.
You also don’t want to do the work yourself unless you have the time to get over to the property right away. Use good, qualified vendors who stand by their work. Otherwise, you’re putting your entire investment at risk. If you’re not sure where to find these vendors, get a referral from a Las Vegas property manager. One of the benefits of working with us is that we have a dedicated team of vendors, contractors, and service professionals who give us their immediate attention and their best rates.
7. Hating on the Pets
We’re sure you don’t actually hate animals, but why aren’t you allowing pets?
It’s certainly understandable if you want to avoid the potential mess and liability that can come with pets. But, it’s a bad business decision not to at least consider them. You have to consider the statistics: more than half of the tenants in Las Vegas have some kind of a pet. The reality is – if you say no pets in any rental, you are eliminating over half of the potential tenant pool. That means longer vacancies.
When you do allow pets, you can earn more and protect yourself by charging a pet fee. You can charge pet rent.
8. Resisting Improvements and Upgrades
Spending money on your investment property isn’t always something that property owners want to do. However, it’s an important part of keeping your investment updated and modern and attractive to good tenants.
Residents want homes that are freshly painted. They want clean floors and easy-to-maintain landscaping. Today, tenants are looking for a bit of smart home technology and a lot of energy efficiency. If you’re not making updates, you’re probably losing a lot of good tenants to competing properties that are recently renovated.
There’s no need to completely rehab the kitchen or add a loft. Make small, cost-effective improvements that will be noticeable. You’ll be able to increase your rent and keep good tenants interested. Tile backsplash in the kitchen. LED light bulbs. A digital keypad. Hard surface floors. All of these things make a big difference. It’s a costly mistake not to make renovations and improvements during turnovers.
9. Not Having an Investment Plan
You have to understand what you want. Whether you’re renting out one property or growing a portfolio, you have to establish a set of goals so you know how to make the right decisions. What type of property do you want to invest in? How long will you keep it?
It’s essential to remain flexible when you’re renting out a home, but you also need some consistency, which will come from a solid set of investment goals.
It’s a mistake to simply move through the investment and rental process without knowing why.
10. Trying to DIY Las Vegas Property Management
As Las Vegas property managers, we believe the biggest mistake you can make is trying to do everything yourself. If you really want to succeed as a landlord without worrying about the mistakes that are waiting to be made, you need to work with a Las Vegas property management partner. You can benefit from your property management partner’s advice on what to do and what not to do.
The right property manager helps you avoid costly and common mistakes. You’ll find you’re earning more and spending less on your rental home. You’re not worried about legal issues or tenant conflicts or disputes about security deposits and pets and property conditions. Having the right management team at your side will ensure your property is leased, managed, and maintained correctly.
We’d love to talk about the potential of your rental property. Please contact us at New West Property Management. Our team expertly manages residential rental homes in Las Vegas and throughout Clark County, including Henderson and North Las Vegas.
