Common Mistakes to Avoid as a Landlord
Property management is a complex and rewarding field. It requires more than simply owning a rental property—it demands a deep understanding of real estate markets, legal compliance, maintenance routines, and tenant relations. Whether you're an experienced investor or new to the rental property business, avoiding costly mistakes is key to maintaining profitability and long-term success.
At Ole Bay Management, Inc., we’ve helped hundreds of landlords in Mobile and Baldwin County, Alabama navigate the complexities of property management. Based on our years of experience, here are the most common landlord mistakes—and how you can avoid them.
1. Inadequate Tenant Screening
Tenant screening is the foundation of a successful rental experience. A bad tenant can cost you in unpaid rent, property damage, and even legal fees.
Common Mistake: Rushing to fill a vacancy without conducting a thorough background and credit check.
What to Do Instead:
Check employment and income verification.
Review rental history and contact previous landlords.
Run credit and background checks.
Ensure compliance with Fair Housing laws.
Key takeaway: A few extra days spent screening tenants can save you months of stress and thousands of dollars.
2. Letting Properties Sit Vacant
A vacant rental is a liability—not just a lack of income, but also a risk for vandalism or maintenance issues going unnoticed.
Common Mistake: Pricing the property too high or failing to advertise effectively.
What to Do Instead:
Conduct market research to set competitive rent.
Use professional photography and compelling descriptions.
Advertise on platforms like Zillow, Apartments.com, and local Facebook groups.
Consider hiring a local property management firm like Ole Bay Management, Inc. to ensure maximum visibility.
Key takeaway: Every week a property sits empty eats into your ROI. Efficient marketing is essential.
3. Skipping Regular Maintenance
Ongoing maintenance is vital for protecting your property’s value and retaining quality tenants.
Common Mistake: Only fixing issues when something breaks.
What to Do Instead:
Implement a preventive maintenance schedule.
Conduct seasonal HVAC checks.
Inspect roofs, plumbing, and appliances routinely.
Respond quickly to tenant maintenance requests.
Key takeaway: An ounce of prevention is worth a pound of cure—and often much cheaper.
4. Poor Communication with Tenants
Clear, respectful communication builds trust and increases tenant retention.
Common Mistake: Being slow to respond or unclear about policies and expectations.
What to Do Instead:
Provide multiple methods of contact.
Use written communication to confirm policies, repairs, or rent changes.
Send regular updates and reminders (e.g., maintenance, holiday hours, lease renewal deadlines).
Key takeaway: Tenants are more likely to respect and renew leases when they feel heard and respected.
5. Legal Noncompliance
Landlord-tenant laws exist at federal, state, and local levels, and failure to comply can lead to lawsuits or fines.
Common Mistake: Ignorance of local housing codes, eviction procedures, or Fair Housing laws.
What to Do Instead:
Stay informed about landlord laws in Mobile and Baldwin County, Alabama.
Use lease agreements that comply with local and federal regulations.
Work with a licensed property management company like Ole Bay Management, Inc. to ensure legal compliance.
Key takeaway: Legal compliance isn’t optional—it’s protection for both you and your tenants.
6. Underpricing or Overpricing Rent
Setting the right rent amount is a balancing act that directly affects your income and vacancy rates.
Common Mistake: Basing rent prices on gut feeling instead of market data.
What to Do Instead:
Review comparable listings in your area.
Adjust for amenities, location, and upgrades.
Reassess rental value annually and at lease renewal.
Key takeaway: Use local data to guide your pricing decisions—not guesswork.
7. Weak Lease Agreements
Your lease is your legal safety net. A vague or outdated lease can leave you exposed.
Common Mistake: Using generic or outdated lease templates.
What to Do Instead:
Clearly outline rent due dates, pet policies, maintenance responsibilities, and termination procedures.
Customize your lease to comply with Alabama landlord-tenant laws.
Review and update annually.
Key takeaway: A strong lease agreement minimizes misunderstandings and legal disputes.
8. Neglecting Property Inspections
Regular inspections protect your property, ensure tenant safety, and prevent small issues from becoming big ones.
Common Mistake: Only visiting the property at move-in and move-out.
What to Do Instead:
Conduct biannual or quarterly walkthroughs.
Give tenants proper notice.
Document conditions with photos and notes.
Key takeaway: Proactive inspections keep your property in top shape and your tenants accountable.
9. Avoiding Technology
Digital tools simplify every aspect of property management—from rent collection to maintenance requests.
Common Mistake: Sticking to paper checks and spreadsheets.
What to Do Instead:
Use property management software for accounting, applications, and communication.
Offer online rent payment options.
Maintain digital records for taxes and audits.
Key takeaway: Tech saves time, reduces errors, and improves tenant experience.
10. Failing to Keep Financial Records
Accurate accounting is essential for tracking your investment’s performance—and staying in the IRS’s good graces.
Common Mistake: Mixing rental income with personal accounts or failing to track expenses.
What to Do Instead:
Open dedicated bank accounts for each rental property.
Use accounting software to record income and expenses.
Save receipts, invoices, and tax documents.
Key takeaway: Good bookkeeping is not just about taxes—it’s how you manage and grow your business.
11. Weak Marketing Strategies
Getting your listing in front of the right audience is critical to reducing vacancy time and attracting great tenants.
Common Mistake: Taking poor-quality photos or relying on one or two platforms.
What to Do Instead:
Use professional-grade photos.
Write compelling descriptions that highlight amenities.
List on multiple platforms and syndicate through property management software.
Let professionals like Ole Bay Management, Inc. handle your marketing for maximum reach in Mobile and Baldwin County.
Key takeaway: Effective marketing attracts the best tenants—and faster.
12. Trying to Do It All Alone
Managing a rental property is time-consuming and often stressful.
Common Mistake: DIYing every aspect of property management, even without the experience or resources.
What to Do Instead:
Hire a licensed property management company if you have multiple properties, live out of town, or want a hands-off investment.
Ole Bay Management, Inc. provides full-service property management in Mobile and Baldwin County, Alabama, handling everything from leasing to maintenance to legal compliance.
Key takeaway: A good property manager pays for themselves in reduced vacancies, fewer legal issues, and happier tenants.
Final Thoughts: Be a Proactive Landlord
Being a successful landlord is about more than collecting rent. It’s about proactively managing risk, maintaining your property, and building long-term relationships with tenants. By avoiding these common mistakes—and partnering with experienced professionals when needed—you can maximize your investment returns and create a stress-free property ownership experience.
If you're looking for expert guidance in managing rental properties in Mobile or Baldwin County, Alabama, Ole Bay Management, Inc. is here to help. With decades of local experience and a commitment to excellence, we offer the tools and knowledge you need to succeed in the competitive real estate market.