10 Common Mistakes Landlords Can Make (And How to Avoid Them)
Being a landlord can be a rewarding experience—but it also comes with a steep learning curve. Among the most important lessons to learn early are the common mistakes landlords can make. Whether you’re renting out a single property or managing a growing portfolio, success in real estate isn’t just about buying a property and collecting rent. It’s about managing people, maintaining properties, staying compliant with the law, and keeping the business side in check.
But like any business venture, mistakes happen. Some are minor bumps in the road. Others can lead to major headaches—legal issues, lost income, or damaged property. The good news? Many of the most common landlord mistakes are entirely preventable.
In this article, we’ll walk through the top mistakes landlords tend to make—and how to avoid them—so you can run your rental business smoothly and successfully.
1. Poor Tenant Screening
One of the most critical responsibilities of a landlord is choosing the right tenant. Your tenants are the foundation of your rental income—and a single bad tenant can turn your investment property into a money pit. Late payments, property damage, evictions, and even legal disputes can stem from failing to properly screen applicants.
What does a proper screening process involve?
- Checking credit reports
- Reviewing rental and eviction history
- Verifying employment and income
- Contacting previous landlords for references
- Running a background check (including criminal history)
Many landlords skip these steps, especially when in a rush to fill a vacancy. But cutting corners during the application process can cost you thousands later. Services like TransUnion SmartMove or RentPrep offer reliable, easy-to-use tenant screening solutions for independent landlords.
Tip: Don’t rely solely on a good “gut feeling.” Always verify the facts and trust the process.
2. Sticking to Outdated Methods
Landlording in 2025 should not look like landlording in 1995. Still accepting rent by cash or checks? Still managing your books with a paper ledger or an old spreadsheet? These habits may have worked years ago, but they are time-consuming, error-prone, and don’t offer tenants the convenience they now expect.
Here’s how outdated practices can hurt your business:
- Missed or delayed rent payments
- Difficulty tracking income and expenses
- Increased risk of loss, theft, or fraud
- Tenant dissatisfaction
Modern landlords are leveraging technology to simplify their operations. Tools like AxcessRent.
…all make managing properties easier and more professional.
Remember: Today’s renters expect digital solutions. If your system is stuck in the past, it may turn good tenants away.
3. Poor Recordkeeping and Organization
Would you run a business without keeping track of your income and expenses? Of course not. Yet many landlords fail to treat their rental property like a true business.
Disorganized recordkeeping can lead to serious issues:
- Missed tax deductions
- Inaccurate reporting to the IRS
- Disputes with tenants that you can’t back up with documentation
- Inability to assess your profitability
From lease agreements to rent receipts to repair invoices, everything needs to be documented, organized, and easy to retrieve.
Pro tip: Set up a system early and stick to it. One of the common mistakes landlords can make is waiting too long to get organized. Even if you only own one property, using simple accounting software like Wave, Stessa, or even structured Excel templates can help you stay on top of income and expenses. For landlords managing multiple properties, full-service landlord software platforms can streamline operations and may be well worth the investment.
4. Failing to Understand Local Landlord-Tenant Laws
Every city, state, and even county can have different laws governing landlord-tenant relationships. Not understanding the rules—whether it’s about security deposit limits, notice periods, maintenance responsibilities, or eviction procedures—can land you in legal trouble fast.
Examples of what can go wrong:
- Charging non-refundable deposits when not allowed
- Entering the property without giving proper notice
- Delaying essential repairs
- Wrongfully withholding part of a tenant’s deposit
Ignorance of the law is not a defense. Every landlord should take time to understand their legal obligations. It may be worth consulting a local attorney or joining a landlord association for guidance.
Tip: Check your state’s housing department or rental board website for free resources and updates on local laws.

5. Underestimating Property Maintenance
A well-maintained property isn’t just about aesthetics—it’s about tenant satisfaction, safety, and long-term value. Many landlords fall into the trap of reactive maintenance: only fixing things when they break. This leads to frustrated tenants and expensive emergency repairs.
Instead, proactive maintenance is key:
- Regular HVAC checks
- Plumbing and leak inspections
- Pest control
- Appliance servicing
- Seasonal upkeep (e.g., gutters, landscaping)
A neglected property not only lowers tenant retention but can also lower your property value over time.
Bonus Tip: Build a list of reliable local contractors—plumbers, electricians, handymen—before you need them. Waiting until something goes wrong will only add stress.
6. Skipping a Formal Lease Agreement
A handshake or verbal agreement won’t protect you in court. Too many landlords operate without a written lease—or use outdated templates that don’t meet current laws. A well-drafted lease protects both parties and clearly outlines expectations.
It should include:
- Rent amount and due date
- Security deposit terms
- Rules about pets, guests, noise, etc.
- Maintenance responsibilities
- Procedures for lease renewal or termination
Consider having your lease reviewed by a lawyer or using a platform like Avail, Zillow, or Rocket Lawyer for state-specific lease templates.
7. Neglecting Communication With Tenants
Strong communication can make or break the landlord-tenant relationship. Landlords who are hard to reach, slow to respond, or dismissive of tenant concerns often find themselves with higher turnover and negative reviews. Good tenants expect timely, respectful communication—especially when issues arise.
Mistakes to avoid:
- Ignoring maintenance requests
- Delayed responses to emails or texts
- Not giving proper notice before entering the property
- Failing to communicate clearly about lease renewals or rent increases
Establish open channels of communication from day one. Use email, phone, or property management apps that allow messaging and tracking of requests.
Tip: Set expectations early. Let tenants know the best way and time to contact you, and how quickly they can expect a response.
8. Setting Rent Prices Incorrectly
Rent that’s too high will deter good tenants. Rent that’s too low leaves money on the table. New landlords often guess what rent to charge, without doing proper market research. This can either lead to long vacancies or lower returns on your investment.
Avoid this mistake by:
- Researching comparable rentals in your area (use Zillow, Rentometer, or Facebook Marketplace)
- Considering local demand and seasonality
- Factoring in the condition and amenities of your property
- Re-evaluating rent annually (within legal limits) based on inflation and market changes
Pro tip: Overpricing might force you into accepting a desperate or unqualified tenant just to fill a vacancy—leading to bigger problems later.
9. Not Preparing for Vacancies or Emergencies
Landlording isn’t always smooth sailing—there will be times without rent. A common mistake is failing to set aside funds for vacancy periods, unexpected repairs, or legal costs. Relying on rent as your sole source of emergency cash can leave you in a financial bind.
How to avoid this mistake:
- Maintain an emergency fund (at least 3–6 months of expenses)
- Budget for ongoing maintenance and repairs
- Consider vacancy loss in your annual cash flow projections
Bonus Tip: Always factor in a “vacancy buffer” when calculating returns—no property stays rented 100% of the time.
10. Managing Too Much Alone
Trying to do everything yourself might save money up front—but cost you dearly in time and mistakes. Many landlords resist outsourcing because of cost. But managing multiple units, complex repairs, legal issues, or problem tenants can be overwhelming—especially if you’re also working full time or living far from the property.
When to consider help:
- You own multiple rental properties
- You live out of state
- You’re unfamiliar with landlord-tenant laws
- You’re frequently dealing with late payments, repairs, or evictions
Property managers, real estate attorneys, accountants, and even virtual assistants can help reduce stress, improve tenant satisfaction, and streamline your business.
Conclusion: Be a Proactive Landlord, Not a Reactive One
Being a landlord can be incredibly rewarding—financially and personally—but it also comes with its fair share of responsibilities and learning curves. The truth is, most landlord mistakes aren’t catastrophic on their own. What makes them damaging is when they’re repeated over time or left unaddressed. The good news? Every mistake on this list is avoidable with the right mindset and systems in place.
Whether you’re just getting started or have managed rentals for years, success in property management comes down to staying informed, being proactive, and treating your rental business like a real business. That means screening tenants thoroughly, using technology to your advantage, setting the right rent, keeping good financial records, and—just as important—being responsive and respectful to your tenants.
You don’t need to do everything alone. In fact, knowing when to ask for help or outsource to professionals is a sign of a smart landlord. From property managers and legal advisors to accounting software and online rent platforms, you have tools and people that can make your job easier and more efficient.
Finally, remember this: being a great landlord isn’t about being perfect—it’s about being prepared, organized, and committed to improvement. By learning from these common pitfalls, you’ll avoid costly headaches, build lasting relationships with quality tenants, and grow a rental business that thrives in the long term.
Take your time, plan smart, and manage with purpose. Your future tenants—and your bottom line—will thank you for it.