By David Crown, Founder and Chief Executive, L.A. Property Management Group

Stepping into the world of property ownership is exciting—whether you’ve just bought your first duplex in Echo Park or inherited a family home in Beverly Hills. But as thrilling as it feels to say, “I’m a landlord now,” the learning curve can be steep. Trust me, I’ve seen it all: from landlords who accidentally forget to collect rent for three months to others who think “maintenance” is just a suggestion.

If you’re new to this game, let’s save you some headaches (and maybe a lawsuit or two) by walking through the biggest mistakes rookie landlords make—and how you can avoid them.

Skipping the Screening: Renting on a Handshake

You might be tempted to rent to the first person who shows up with a smile and says, “Don’t worry, I’m good for it.” Maybe you had a good feeling and want to go with your gut. Here’s the problem: your property isn’t a lemonade stand. Skipping background and credit checks is one of the fastest ways to turn your investment into a stress factory.

A solid screening process should include credit history, rental references, and income verification. Yes, it takes a little extra time. But it’s a lot easier than chasing down a tenant who suddenly disappears, leaving you with a “trashed” unit and six months of unpaid rent. Think of screening as your version of “trust but verify.”

Underestimating the Law: Ignorance Isn’t Bliss

Here’s the harsh truth: landlord-tenant law is not light reading. Between rent control, habitability standards, and eviction rules, the fine print can make even seasoned owners dizzy. But ignoring these rules isn’t an option—it can cost you thousands in penalties or worse. For example, in Los Angeles, rent increases are tightly regulated in many areas. If you raise rent without checking the city’s rules, you could find yourself in legal hot water fast. My advice? Consult a property attorney, or at the very least, brush up on local housing laws before drafting your lease. This isn’t the part of the job where you want to wing it. And ChatGPT may not know it all.

Neglecting Maintenance: “Out of Sight, Out of Mind” Doesn’t Work

That dripping faucet you put off fixing. It could turn into a major plumbing disaster faster than you think. Many new landlords underestimate just how critical it is to stay on top of maintenance. Tenants notice when you ignore issues—and nothing sends them searching for a new home faster than feeling like their landlord doesn’t care. Even small delays can lead to bigger repair bills. Preventive maintenance is cheaper than emergency maintenance, plain and simple. Think of it as the oil change for your rental property. Ignore it, and you’re looking at a blown engine.

Mispricing the Rent: Shooting Too High (or Too Low)

Setting rent can feel like throwing darts blindfolded. Price it too high, and your place will sit vacant. Price it too low, and you’re basically donating to your tenant’s monthly savings account. The key is research. Look at comparable rentals in your neighborhood and adjust based on amenities, condition, and location. Remember, the goal is to find the sweet spot: competitive enough to attract quality tenants but profitable enough to keep your investment sustainable. And please—don’t just pick a number that “feels right.” That’s not strategy, that’s wishful thinking.

Treating It Like a Hobby Instead of a Business

Being a landlord isn’t just collecting checks—it’s actively running a business. No passive income here. Like any business, it needs structure. That means keeping financial records, tracking expenses, and having a system for everything from lease renewals to property inspections. New landlords often underestimate the time commitment. Before you know it, you’re fielding repair calls at midnight or spending Saturdays chasing down rent. If you treat it casually, you’ll get casual results. Approach it like the serious business it is, and you’ll see the returns.

Thinking You Can Do It All Alone

Here’s a big one: too many landlords try to go solo. Maybe you want to save money, or maybe you think property management is “easy enough.” But trust me, managing a rental isn’t always straightforward. Between legal compliance, tenant issues, and the endless stream of maintenance calls, it’s a lot to juggle.

That’s why many landlords partner with professional property management companies. Yes, I’m biased, but here’s the truth: a good manager will more than pay for themselves by reducing vacancies, keeping tenants happy, and handling the details that keep you up at night. You don’t have to reinvent the wheel—maybe just delegate it. And as the title implies, this thought might be a solid choice for a new investor. Don’t sign an agreement for anything that’s longer than a month with a manager, if you go this route. You may feel totally ready to go it alone in 6 months, or a year. And then, by doing the right research, and hopefully with minimal bumps and bruises, you’ll be right there: Knowledgeably ready to fly solo if that’s your goal.

David Crown is the Chief Executive Officer of Los Angeles Property Management Group and has over 30 years of experience managing all types of income properties. He can be reached directly at (323) 433-5254.