Are You Making These Costly Rental Property Mistakes? Here’s How to Fix Them
So, you decided to rent out your property in Billings, Montana —exciting, right? You imagined a steady stream of passive income, a great long-term investment, and financial freedom.
But now… things aren’t going as smoothly as you expected.
Maybe your tenants are always late on rent, maintenance issues seem never-ending, or you’re not making the money you thought you would. You might even be wondering if you made a mistake getting into rental properties at all.
Sound familiar? You’re not alone. Many first-time property owners in Montana make the same mistakes, but the good news is—they’re fixable.
Here are the top 5 rental property mistakes that could be costing you thousands—and, more importantly, how to avoid them.
Mistake #1: Not Screening Tenants Properly
The Problem: Choosing the First Tenant Who Applies
You list your rental property, and within hours, you get a tenant inquiry. You’re eager to start collecting rent, so you accept the first applicant who seems nice and has cash in hand.
🚨 Big mistake.
The wrong tenant can lead to:
❌ Late or unpaid rent
❌ Property damage
❌ Eviction headaches
❌ Legal issues
How to Avoid This Costly Mistake
✔ Screen tenants thoroughly before approving them. Check credit reports, employment history, and rental references. A good tenant should have a stable income, a history of paying rent on time, and no recent evictions.
✔ Verify income. The tenant’s income should be at least 3x the monthly rent to ensure affordability.
✔ Call previous landlords. Ask about their payment history, how they treated the property, and if the landlord would rent to them again.
✔ Have a written rental criteria list. This keeps the decision’s objective and prevents accepting tenants based on emotions. It also prevents you from discriminating against potential tenants and the possibility of a lawsuit.
💡 Pro Tip: A vacant unit for a few weeks is better than renting to the wrong tenant who could cost you thousands.
Mistake #2: Not Charging the Right Rent
The Problem: Overpricing or Underpricing Your Rental
Many first-time landlords in Billings, Montana guess at their rent price rather than using real market data to determine it.
- Setting rent too high? You’ll struggle to find tenants, leading to long vacancies.
- Setting rent too low? You’re leaving money on the table and may attract tenants who don’t take care of the property.
How to Find the Right Rent Price
✔ Research market rates. Use Zillow, Apartments.com, Craigslist, and Rentometer to compare your rental to similar properties in your area.
✔ Check demand. If your property has been on the market for more than 3 weeks with no applicants, it may be priced too high.
✔ Adjust for seasonality. Rentals move faster in spring and summer and slower in winter, which affects pricing.
✔ Offer incentives instead of lowering rent. If you need to attract tenants, consider offering a free parking space, discounted first month’s rent, or new appliances instead of slashing the price.
💡 Pro Tip: The right rent maximizes your profit while keeping vacancies low.
Mistake #3: Being Too Lenient on Late Rent Payments
The Problem: Letting Tenants Pay Late Without Consequences
Your tenant tells you they had an unexpected expense and need an extra week to pay rent. You agree. Then it happens again. And again.
Soon, they’re months behind, and you’re left wondering how to get your money without going through a stressful eviction process.
How to Enforce On-Time Rent Payments
✔ Have a strict late fee policy. Rent should be due on the same day each month, with a late fee penalty if unpaid after a certain number of days. Ensure you are also following your state laws.
✔ Use online rent collection software. Platforms like Tenant Cloud, Buildium, or Avail automate rent collection and send reminders to tenants.
✔ Never accept partial payments. Once you allow it, tenants will start paying late consistently.
✔ Follow through on late fees. If you say there’s a $50 late fee after the 5th, enforce it every single time.
💡 Pro Tip: Late rent payments aren’t just an inconvenience—they disrupt your cash flow, mortgage payments, and financial stability.
Mistake #4: Ignoring Maintenance Issues Until They Get Worse
The Problem: Delaying Repairs to Save Money
Your tenant reports a leaky faucet. You put it off because it’s not an emergency.
A few weeks later, that small leak turned into major water damage, mold, and a $2,000 repair bill.
How to Stay on Top of Rental Property Maintenance
✔ Fix small problems before they become big ones. A $100 repair now could save you thousands in major damage later.
✔ Schedule routine inspections. Check plumbing, HVAC, and appliances every 6 months to prevent unexpected failures.
✔ Build a network of reliable contractors. Having a go-to plumber, electrician, and handyman will save you stress when emergencies happen.
✔ Encourage tenants to report issues early. If tenants fear reporting problems (thinking they’ll get blamed), issues will go unnoticed until it’s too late.
💡 Pro Tip: Well-maintained properties attract better tenants and have lower turnover rates.
Mistake #5: Trying to Manage Everything Yourself
The Problem: Treating Your Rental as a Side Hustle Instead of a Business
Managing a rental property here in Montana isn’t just about collecting rent—it involves tenant screening, maintenance, lease enforcement, marketing, and legal compliance.
If you’re constantly stressed, overwhelmed, or making costly mistakes, it may be time to get help.
How to Make Property Management Easier
✔ Hire a property manager near your area. If you don’t have the time or expertise, a property management company can handle tenant screening, rent collection, maintenance, and evictions for a small percentage of rent. If you have an investment property in Billings, MT and are looking for property management services look no further than Premier Property Management.
✔ Use property management software. They help automate rent payments, lease agreements, and maintenance requests.
✔ Outsource maintenance and repairs. Don’t spend your weekends fixing toilets—hire professionals to handle maintenance efficiently.
💡 Pro Tip: The best real estate investors treat rentals like a business, not a side hustle.
Final Thoughts: Managing Rentals the Right Way
Owning rental property can be a great investment—but only if you avoid these common mistakes.
✅ Screen tenants thoroughly to avoid eviction headaches.
✅ Set the right rent price based on real market data.
✅ Enforce rent payments with strict policies and online systems.
✅ Stay on top of maintenance to prevent costly repairs.
✅ Leverage property management tools and professionals to streamline operations.
By fixing these mistakes, you’ll reduce stress, increase cash flow, and turn your rental into a real asset—not a liability.
Need Help Managing Your Rental Property?
Managing rentals can be overwhelming—but you don’t have to do it alone. Whether you need help with tenant screening, maintenance, or full property management, we’ve got you covered. Here at Premier Property Management, we care for your property like it’s our own!
👉 Contact us today and let’s make your rental stress-free and profitable! 🚀