The 7 Biggest Mistakes New Landlords Make (And How to Avoid Them)

Becoming a landlord can be rewarding, but it comes with challenges that first-time landlords often underestimate. From tenant issues to tax headaches, small mistakes can quickly eat into your rental profits.

Here are seven of the most common mistakes new landlords make — and how to avoid them.

1. Not Screening Tenants Properly

Choosing the wrong tenant can lead to late rent, property damage, or disputes. Many new landlords rush this step and pay the price later.

Avoid it: Take time to check references, verify income, and use a clear tenancy agreement.

2. Ignoring Legal Compliance

Landlords must meet strict requirements for gas safety, EPCs, and other regulations. Missing deadlines can result in fines.

Avoid it: Use reminders and tracking tools to stay on top of compliance. MyPropertyPal’s legal manager helps landlords monitor deadlines automatically.

3. Poor Record Keeping

Receipts in shoeboxes and income spread across multiple bank accounts make tax season stressful. Many landlords lose money by missing allowable expenses.

Avoid it: Track income and expenses throughout the year. MyPropertyPal’s financial manager and AI-powered receipt scanning make this simple.

4. Underestimating Maintenance Costs

Repairs and upkeep are part of being a landlord. Ignoring maintenance can make problems worse and drive tenants away.

Avoid it: Budget realistically and respond to issues quickly. With MyPropertyPal, tenants can submit maintenance requests directly, helping you act fast.

5. Failing to Communicate with Tenants

Poor communication often leads to misunderstandings and disputes. Landlords who don’t provide tenants with an easy way to get in touch risk damaging relationships.

Avoid it: Use a system that keeps all communication in one place. MyPropertyPal’s tenant portal and messaging system make this simple and secure.

6. Not Planning for Taxes

Many new landlords don’t think about tax until the deadline looms. With Making Tax Digital on the way, last-minute paperwork won’t cut it.

Avoid it: Keep records digitally and stay prepared. MyPropertyPal helps landlords keep everything organised for HMRC.

7. Trying to Manage Everything Manually

Spreadsheets, paper receipts, and phone calls might work for one property — but they won’t scale as your portfolio grows.

Avoid it: Use property management software to streamline admin and save time. MyPropertyPal was designed for landlords to manage tenants, finances, and compliance all in one place.

Avoiding Mistakes = Protecting Profits

The best landlords are proactive, not reactive. By avoiding these common mistakes, you’ll protect your investment, keep tenants happy, and reduce stress.

Ready to Manage Your Rentals the Smart Way?

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