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Owning a rental property in Northern Colorado can be a fantastic path to building long-term wealth. However, a few common missteps can quickly turn a profitable investment into a source of stress and financial loss. As experienced property managers in Fort Collins, Greeley, and beyond, we've seen it all. Here are five common mistakes to avoid...

1. Inadequate Tenant Screening

Rushing to fill a vacancy can lead to placing a problematic tenant. A thorough screening process is your first line of defense. This means going beyond a basic application and includes credit checks, criminal background checks, employment verification, and contacting previous landlords. Failing to do so can result in late payments, property damage, and costly evictions.

2. Ignoring Colorado's Landlord-Tenant Laws

Colorado has specific laws regarding security deposits, lease agreements, evictions, and habitability standards (like the Warranty of Habitability). A common mistake is using a generic lease found online that isn't compliant with state and local regulations. This can leave you vulnerable to legal disputes and significant financial penalties. Always use a state-specific lease and stay informed about your legal obligations.

3. Neglecting Preventative Maintenance

Ignoring small issues like a leaky faucet or a clogged gutter can lead to major, expensive repairs down the line, such as water damage or foundation issues. Proactive maintenance not only protects your investment but also keeps your tenants happy. Create a seasonal maintenance checklist and conduct regular property inspections to catch problems early.

4. Using a Generic Lease Agreement

A solid lease is the foundation of a successful landlord-tenant relationship. A generic lease might not include critical clauses specific to your property or local laws, such as rules on smoking, pets, or late fees. Your lease should be detailed, clear, and legally sound to protect both you and your tenant. It's one of the most important documents you'll have as a landlord.

5. Poor Communication and Record-Keeping

From maintenance requests to payment receipts, keeping meticulous records is crucial. It creates a professional relationship with your tenants and provides essential documentation if a dispute arises. Always communicate in writing when possible, respond to tenant inquiries promptly, and keep a detailed file for each property with all relevant documents, including the lease, inspection reports, and communication logs.

Marc Agnew