7 mistakes every landlord makes

Most rental problems don't come from a bad tenant - they come from decisions an owner makes before move-in, or never makes at all, relying on verbal agreements instead. Here are the common landlord mistakes that cost money even for people who've been renting out property for years.

Renting to relatives without clear terms

It's hard to set a firm payment deadline for a relative, refuse a request for registration, or raise the rate to match the market - personal ties make an owner vulnerable exactly where a stranger tenant would raise no issue at all. In practice this ends up as a rate far below market, demands for permanent registration, and an inability to manage your own apartment without being accused of damaging family relationships. The rule is simple: terms and paperwork should be the same for everyone, regardless of family ties.

Renting out without a written lease at all

A verbal agreement protects neither side. If a tenant stops paying, damages the property, or refuses to move out, the owner has no proof the tenancy even existed - and so no legal grounds to demand eviction or compensation. Without a lease, it's extremely difficult to legally prove someone lived in the apartment as a tenant rather than just "stayed for a while."

An expensive personal renovation before renting out

Investing in premium finishes and appliances rarely pays off once a property is rented out: a tenant treats someone else's apartment differently than an owner treats their own, and within a couple of years expensive fixtures wear down just like budget ones - while the rent difference usually doesn't cover the cost. If a property is being prepared specifically for rental, a simple, solid renovation without personal high-end choices makes more sense - or take the valuable items and appliances with you before moving tenants in.

A generic online template instead of a lease drafted for the deal

A free two-page template usually doesn't fully protect either side: it's missing the details of every actual resident, the terms for the security deposit, provisions on wear and tear, and penalties for late payment. A lease should be drafted for the specific apartment and tenant, not downloaded from the first link that comes up.

Not paying tax and breaching mortgage terms

Tax authorities increasingly cross-check regular card transfers against the number of properties someone owns - read our separate article for how this works and what to do if a rental is already informal. A separate risk for mortgaged apartments: many loan agreements include a clause requiring the bank's consent to rent out the property. If the bank finds out about an unauthorized rental, it can demand early repayment of the loan - worth checking your own agreement in advance.

Handing a tenant a full set of keys

If a door has two locks, it makes more sense to hand over only the key to the lower one - a lower lock cylinder costs a fraction of an upper one. Handing over both sets means the owner loses control: a former tenant may keep a duplicate, and if a problem comes up, it's the owner who has to change the locks after every tenant.

No regular check on the apartment's condition

Meeting a tenant once when signing the lease and again only when they move out a year or two later is a common mistake that lets damage go unnoticed until it's too late for the security deposit to cover repairs. Periodic visits, written into the lease, let an owner address problems as they appear and deduct compensation from the deposit right away, instead of trying to claim damages after the fact.

How to avoid common landlord mistakes

• Apply the same terms and paperwork to every tenant, including relatives.
• Never rent out an apartment without a written lease.
• Plan any renovation with renting in mind - don't carry choices meant for yourself into a rental.
• Draft the lease for the specific deal instead of using a generic online template.
• If the apartment is mortgaged, check whether the bank requires consent to rent it out.
• Hand over only the key to the lower lock if the door has two.
• Write periodic property checks into the lease.

Want to rent out your property mistake-free

Describe the property by phone - we will help draft a lease for your situation and account for the risks in advance.

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