Reasons Investors Fail With Rental Properties

#1: Landlord’s are the highest sued people in Real Estate. They are watched by more government agencies than anyone else in Real Estate. Fair Housing, Discrimination, the IRS, Texas Property Code, and you have a whole litany of people that are watching you along with the Texas Real Estate Commission. You better know the law and follow it.

#2: Maintenance Law. Not understanding maintenance and laws that protect tenants for things owners are responsible to fix. There are time constraints for certain things that need to happen. There are laws that protect tenants on certain items that make the house unsafe or inhabitable.

#3: Owner giving the tenant too much control. The reason a lease exists is to protect the Owner of the property as well as the tenant. It is a Bi-lateral agreement which means both parties are obligated to conform to the contract. Do not make any side agreements that are not in the original contract.

#4: Poor customer service. The tenant is the client, if the tenant leaves, there is no money coming in, meaning there will be no cash flow. You need them as much as they need you.

#5: No business plan. Not having policies and procedures in place to follow is the difference between success and failure. If you do not have a business plan to be successful, the chances of you failing are extremely high. Don’t go into buying properties without a plan and not having very strict policies and procedures on how you are going to operate your business.