The Top 5 Mistakes First-Time Landlords Make (And How to Avoid Them)
New to landlording? Here’s how to avoid costly missteps and set your rental up for long-term success.
Becoming a landlord is one of the best ways to build long-term wealth—but if you're new to the game, it's easy to fall into traps that cost you time, money, and good tenants.
The good news? Most of these mistakes are 100% avoidable with the right strategy and systems in place.
In this guide, we’ll cover:
✅ The 5 most common mistakes first-time landlords make
✅ Why they happen (and what they actually cost you)
✅ Practical ways to avoid them
✅ How Nextpad Homes makes it easier to self-manage with confidence
Mistake #1: Underestimating the Time It Takes to Self-Manage
The problem:
First-time landlords often assume property management is “set it and forget it.” But between rent collection, maintenance, lease renewals, and tenant communication—it quickly becomes a second job.
The risk:
Burnout
Missed tasks and deadlines
Poor tenant retention
How to avoid it:
Use smart tools to automate tasks
Create a clear process for every part of the rental cycle
Don’t try to manage everything through texts and spreadsheets
💡 Nextpad Homes helps you streamline everything from rent to repairs—so you stay organized without being overwhelmed.
Mistake #2: Not Screening Tenants Thoroughly
The problem:
Many first-time landlords get impatient and approve the first applicant with cash in hand—skipping full background or credit checks.
The risk:
Late payments or non-payment
Property damage
Evictions (which are expensive and stressful)
How to avoid it:
Use a formal application process
Run credit, background, and income checks
Call previous landlords and verify employment
Trust your process—not your gut alone
💡 Nextpad Homes includes built-in tenant screening tools, so you get verified info and make smarter leasing decisions.
Mistake #3: Using a Weak or Generic Lease Agreement
The problem:
Grabbing a free lease template online—or worse, writing your own—leaves you vulnerable to misunderstandings and legal issues.
The risk:
Inability to enforce rent or rules
Legal exposure in disputes
Confusion around responsibilities
How to avoid it:
Use a state-specific lease that includes required disclosures
Clearly define terms: rent due date, late fees, maintenance responsibilities, pet policy, etc.
Include a move-in checklist and document everything
💡 Nextpad Homes gives you customizable digital leases with built-in e-signatures and automatic storage—so you’re always covered.
Mistake #4: Delaying Maintenance (or Ignoring It Completely)
The problem:
First-time landlords sometimes try to save money by delaying repairs—or they don’t have a system to track requests and follow up.
The risk:
Angry tenants
Bigger, more expensive problems later
Bad reviews or tenant turnover
How to avoid it:
Create a clear process for handling maintenance
Let tenants submit requests through a trackable system
Prioritize essential repairs fast
Keep a preferred vendor list
💡 Nextpad Homes allows tenants to submit repair requests online (with photos) and helps you track, assign, and close maintenance tickets easily.
Mistake #5: Not Keeping Good Financial Records
The problem:
Many new landlords treat rental income casually—managing rent payments and expenses in their heads or on a napkin.
The risk:
Missed tax deductions
No clear view of cash flow
Trouble proving income for future financing
How to avoid it:
Track rent payments and expenses automatically
Save digital copies of all receipts and invoices
Use software that organizes it all for tax season
💡 Nextpad Homes tracks every payment, categorizes expenses, and gives you ready-to-go reports for Schedule E and tax filing.
Final Thought: Landlording Isn’t About Doing Everything—It’s About Doing the Right Things
If you’re just starting out, it’s normal to make a few missteps—but you don’t have to learn every lesson the hard way.
By avoiding these five common mistakes and setting up strong systems from the start, you’ll:
Keep tenants longer
Avoid costly repairs and legal headaches
Save time and stay profitable
Feel confident, even if it’s your first time
Nextpad Homes helps first-time landlords run their rental properties like pros—with tools to manage communication, screening, leasing, maintenance, and accounting—all in one platform.
👉 New to landlording?
Nextpad Homes makes self-management simple, automated, and professional—so you can grow without the growing pains.