If you are a new landlord in Utah, you are about to embark on an exciting, frustrating, fulfilling, and sometimes overwhelming journey. At Bethany Insurance, we provide landlord insurance, which means we’ve seen just about everything that can go wrong when it comes to landlords. We wanted to use that insight to create a blog post about some common mistakes we see landlords making and how to avoid them—so you can avoid others’ slipups.
Mistake #1: Not Saving Enough for Repairs and Maintenance
In Utah, landlords are legally obligated to keep their properties in a safe and livable state. In order to do this, you must be able to make repairs and perform maintenance as soon as an issue arises — or even before it does. You should always have money set aside for maintenance and repairs because, lets’ face it, they are inevitable for new and veteran landlords alike.
Mistake #2: Forgetting to Plan for Vacancies
In a perfect world, you would have a tenant occupying your rental unit 24/7, 365 days a year. Unfortunately, that likely won’t be the case — especially when you are a landlord just getting your feet wet. Plan for this in your budget so your world doesn’t get flipped upside down should your property go a few weeks, or even months, sans tenant.
Mistake #3: Failing to Research Utah Property Laws
Property laws vary from state to state. As a landlord, you have legal, maintenance, and financial responsibilities for your rental property that cannot go neglected. In Utah, tenants have legal responsibilities and rights, and landlords have a separate set of responsibilities and rights.
If you fail to brush up on the laws, you could find yourself in serious trouble that may jeopardize your entire future as a landlord (and law-abiding citizen)! The laws can seem overwhelming because there are so many of them. We recommend brushing up on at least the following areas of Utah landlord laws:
- Anti-discrimination and fair housing laws
- State rent rules
- Providing “habitable” housing
- Preparing a legal written lease
- Make legally required disclosures — both Utah disclosure laws and federal disclosures regarding lead-based paint on the property
- Respecting your tenant’s property — Utah landlords must provide 24 hours’ notice before entering the rental property
- The legal procedure for evicting a tenant
Mistake #4: Expecting Your New Landlord Income to be Passive From the Get-Go
Passive income is a top reason many people choose to go into property management. However, expecting you will not have to do any work from the very beginning is a recipe for disappointment.
Instead, you should view your landlord duties as a part-time job. If you want to succeed, you need to keep up with rental laws, changes in the rental market, and of course, keep your properties in great shape. The more you invest in your properties, the more money you can make in the long run.
Mistake #5: Not Getting New Landlord Insurance—Or Getting It too Late
Landlord insurance is paramount to protecting yourself and your investment. Your landlord policy will cover the structure and the physical home itself, so it’s important to ensure you get enough coverage to pay for the home’s replacement should a catastrophe occur.
You will also want to look at liability coverage. Someone getting hurt on your property can result in a serious lawsuit. If you’re not protected with landlord liability insurance, you risk financial devastation.
If you’re in need of Utah landlord insurance, look no further than Bethany Insurance. Contact us today and let’s get started protecting your most valuable assets.
