The Top 10 Mistakes Sonoma County Property Owners Make (And How to Avoid Them)

No one likes to make mistakes. Usually, we can decide to adopt a good attitude about them. They’re teachable moments. You’ve learned something from your mistake. You’ll never make the same mistake again. 

Everyone makes mistakes. The problem, of course, is that when it comes to your Sonoma County rental property, those mistakes are usually pretty expensive. They’re sometimes difficult to recover from. 

Most mistakes are best avoided, especially when we’re talking about tenants, maintenance, and profitability. You don’t want to lose money. You don’t want to chase good tenants out of your property. And, you don’t want to allow your investment to deteriorate or lose its value. 

But there will be challenges. It’s easy to make mistakes when it comes to rental property, even if you’re an experienced investor. 

Because we hate to see people make mistakes that have been made before, we’re using our experience managing rental properties in Sonoma County to tell you about the top 10 mistakes property owners are likely to make when they’re renting out a home. 

We are also helping you avoid those mistakes with some of our own tips and strategies on how to avoid them. 

Here’s our Top 10 List.

1. Placing Unqualified Tenants 

We have found that unqualified tenants manage to get into your property in one of two ways. Either you’re so nervous about losing money on a long vacancy, you’re willing to approve anyone who has the security deposit and the first month’s rent, or your tenant screening is extremely lax.

One of the most critical parts of renting out a home in Sonoma County is choosing and placing the most qualified tenant. You need to get a resident in place who is dependable, financially able to pay rent, and willing to follow the lease terms and take care of your property. If you are not screening thoroughly, you could find yourself with a tenant who does not pay rent. You could discover property damage after they move out. You might find yourself involved in disputes and conflicts all the time.

Don’t make this mistake. 

Instead, invest in a rigorous and consistent screening process. This means doing more than running a basic credit report. We want you to check national eviction databases, verify income, and look at your applicant’s rental history. You also want to make sure you’re not making any fair housing mistakes or violating any anti-discrimination laws.

2. Deferred and Unreported Maintenance 

You do not want to ignore those maintenance requests. For many reasons – including tenant satisfaction and to preserve the condition of your investment. But really, those small repair requests prevent you from having to respond to emergencies later. Emergencies are always more expensive than the immediate repairs that are completed as they’re requested. 

There are so many additional mistakes that can be made with maintenance, from ignoring preventative services to hiring the wrong vendors and contractors. However, those deferred maintenance issues will cause the most damage and the highest expenses.

You also want to encourage your tenants to report problems as soon as they’re noticed. When they delay in getting their maintenance requests in, you’re putting your property condition at risk.

Be responsive. Encourage communication. Sharing your expectations with tenants ahead of the tenancy and establishing a good relationship can help you tackle maintenance preventatively and without any deferred or unreported repairs increasing your expenses.

3. Lease Agreements You Cannot Enforce 

The lease is an important document that will serve as a roadmap for you and your tenants. If there is a question during the tenancy, or a dispute, the lease is the first place you’ll turn to look for answers and direction. Make sure the lease agreement is strong and protects your interests as well as those of your tenants. 

You need a lease agreement that’s compliant with all California state laws. You also need a lease agreement that’s enforceable in the state. If you pulled a lease template off the internet, it might not be specific to California’s laws. That will limit what you’re able to enforce.

You’ll want your lease to address:

• • Rent collection policies and payment terms
  • Maintenance responsibilities and the process for requesting repairs
  • Rules for tenant conduct.

Have an attorney or a Sonoma County property manager review your lease to ensure it complies with local laws.

4. Poor Pricing 

Inaccurate rental values can lead to major mistakes, including vacancy and unqualified tenants. You need a rental price that’s accurate, competitive, and profitable. Study the market and use reliable data that tells you what homes similar to yours are renting for in your area. 

Regularly review and adjust your rental rates based on market conditions. Make increases at lease renewal time that are reasonable and unlikely to chase your good tenants away. Again, you want to follow the market and give your best tenants a reason not to move out. 

5. Ineffective Communication 

A good relationship with your tenants starts with responsive and transparent communication.

This has to be prioritized, otherwise you’ll find yourself dealing with disputes, complaints, and conflicts. A harmonious rental experience is more profitable, less stressful, and likely to encourage tenant retention. The best way to move towards that goal is with effective communication. 

Learn how to listen. And establish communication expectations at the beginning of the lease term. Always provide multiple ways for tenants to contact you. Respond to their inquiries and concerns promptly. This will build trust and respect. 

Don’t lose good tenants to bad communication.

6. Making Legal Mistakes 

Legal mistakes are potentially the worst kind of mistakes you can make. They lead to a loss of income. They lead to a damaged reputation. They lead to a lot of stress and frustration. 

Failing to comply with local, state, and federal housing laws is not only a huge mistake, but it can also result in severe penalties. Don’t put yourself at risk for violating an important law. Fair housing, habitability standards, eviction procedures, and security deposit returns are all governed by state and federal laws. You need to know how to follow the law and not infringe upon any of your tenant’s rights. If you’re not sure you can stay up to date on the laws you need to know, work with a property manager who can keep you compliant and out of legal hot water. 

Avoid legal missteps by getting familiar with fair housing laws, security deposit laws, rent control and just cause eviction laws, habitability standards, and all of the little laws that have an impact on your rental property.

7. Inadequate Insurance Coverage

Protecting your assets has to be a priority, and it’s easy to underestimate exactly how much coverage you’ll need. In California, we’re prone to earthquakes but surprisingly, earthquake insurance is not required. Nor is flood insurance, even though we have had some serious and surprising rain events recently. There are also wildfires and droughts. Something could happen inside your home that will cost thousands of dollars if you don’t have the right insurance. 

You want sufficient coverage for property damage, liability, repairs, and loss of rental income. Work with an insurance agent to continually review your policy. Needs will change when your property increases in value. Make sure you’re keeping up.

8. Avoiding Upgrades and Updates to Sonoma County Rental Homes

A well-maintained property is absolutely necessary. Updates and upgrades are, too. 

We know that renovations can be expensive. They can be time consuming. It’s hard to find good vendors and contractors.

We still believe that they’re important. Improvements keep your property competitive on the market. They allow you to charge more in rent and they attract better tenants. 

You can make cost-effective improvements. Better landscaping. Tile backsplash. Laminate floors rather than carpet. Even smart locks and video doorbells can make a big difference.

9. Poor Financial Management

Are you tracking your income and expenses effectively? If not, you could be jeopardizing the success of your investment. Put together a process in place that’s clear, detailed, and consistent. You want an accurate look at where you stand financially with your real estate investments.

This is a good reason to work with Sonoma County property managers. We have software and systems in place that can track the performance of your investment, and we’ll share that information with you.

10. Managing On Your Own

If you’re not working with a Sonoma County property manager, that is really the biggest mistake you can make.

Managing rental properties can be time-consuming and complex. Many property owners underestimate the benefits of hiring a professional property management company. When you partner with a team like ours, you’re getting so much value and so much expertise. You’re also able to leverage technology, resources, and networks to the advantage of your investments. 

Avoiding these 10 common mistakes can significantly enhance your experience as a property owner in Sonoma County. By implementing these tips, you’ll be better equipped to manage your properties efficiently, maintain good tenant relationships, and maximize your investment returns. You can also contact us at Redwood Residential Property Management if you’d like to talk more about our services.