The first rental property is exciting. The second one is humbling. Most first-time landlords in Central Arkansas make the same handful of mistakes: and almost all of them are avoidable if you know what to watch for. Here’s an honest list of what trips new landlords up, from a firm that manages properties across Little Rock, North Little Rock, Conway, Maumelle, Bryant, and the rest of Central Arkansas.

Mistake #1: Setting rent too low (or too high)

Setting rent based on what you need (your mortgage plus a little) instead of what the market actually pays is the single most common mistake. Set it too high and the unit sits vacant for months, each vacant month wipes out months of margin. Set it too low and you leave money on the table for the entire lease term. The right approach: pull active and recently leased comparable rentals within a half-mile of your property, in the same bed/bath count, similar age and condition. Your rent should land in the middle of that range, slightly higher if your property is genuinely better, slightly lower if you want to lease fast.

Mistake #2: Skipping or rushing tenant screening

Every week of vacancy feels expensive, so the temptation when someone says “I’ll take it” is to lease it before they change their mind. That instinct is what fills your unit with the tenant who’s about to cost you six months of headaches and an eviction. A vacant unit costs you maybe $40-$80 a day in Central Arkansas. A bad tenant can cost you $5,000-$15,000+ between lost rent, damage, and eviction costs. Always screen, credit, income, rental history, background, eviction search, on every adult applicant, every time.

Mistake #3: A weak lease (or worse, a verbal agreement)

A lease isn’t just paperwork, it’s your operating system for the entire tenancy. A weak lease that doesn’t clearly spell out rent due dates, late fee structure, pet policies, maintenance responsibilities, lease term, and renewal terms turns every minor disagreement into a debate. And a verbal lease is functionally no lease at all. Use a written Arkansas-compliant residential lease for every tenancy, even with family members.

Mistake #4: Mixing personal and rental finances

Rental income and expenses should run through a separate bank account from day one. This makes tax season dramatically easier, creates clean records if you ever need to evict or refinance, and (if you ever put the property in an LLC) preserves the liability protection the LLC is supposed to provide. A free business checking account is all you need.

Mistake #5: Deferring maintenance to “save money”

The leak you didn’t fix for three months becomes the floor replacement you didn’t budget for. The HVAC you didn’t service for two years becomes the new unit you’re financing in July. Small maintenance done on time is dramatically cheaper than large maintenance done in a crisis, and tenants who feel ignored leave faster, costing you turnover. Budget roughly 1% of property value annually for maintenance, and don’t dip into that reserve for anything else.

Mistake #6: Underestimating vacancy

New landlords often pencil in 100% occupancy and are surprised when vacancy shows up. In Central Arkansas, plan on 5-8% vacancy annualized for a well-managed property. That includes turnover time between tenants, the occasional bad month, and lease-up gaps. If you can’t afford the mortgage during 1-2 months of vacancy per year, you don’t have enough reserves to be a landlord yet.

Mistake #7: Wrong insurance

A homeowner’s policy doesn’t cover a rental property, it specifically excludes tenant-occupied use. Once you start renting, you need a landlord policy (sometimes called DP-3 or fire policy with liability). Failing to switch can mean a denied claim when something happens. The annual difference is usually $100-$300, small money for actual coverage.

Mistake #8: Not understanding Arkansas landlord-tenant law

Arkansas is one of the most landlord-friendly states in the country, but that doesn’t mean rules don’t exist. Security deposits are capped at two months of rent. Notice periods for non-payment and lease violations have specific statutory requirements. The eviction process, known as Failure to Vacate or Unlawful Detainer depending on the cause, has very specific procedural requirements that must be followed exactly. Skipping a procedural step starts the whole process over. Either read the relevant Arkansas Code sections yourself or have a property manager handle it.

Mistake #9: Trying to manage from far away with no system

Out-of-state landlords managing a Central Arkansas rental from afar without local systems consistently underperform. You can’t easily check on the property, you don’t know which vendors are honest, you can’t show the unit to applicants, and emergency response time is slow. If you’re remote, either build a tight local team (handyman, plumber, electrician, HVAC, landscaper, eviction attorney) before you need them, or hire a local property manager.

How we help first-time landlords

Chase Calhoun Real Estate manages rentals for first-time landlords across Central Arkansas: including a lot of out-of-state owners and locals with one or two properties who don’t want the day-to-day. We handle leasing, screening, maintenance, accounting, and Arkansas-compliant lease enforcement. If you’d like to talk through whether self-management or professional management makes sense for your specific property, reach out.

Related Resources

Related operator reading: How to Evict a Tenant in Arkansas · Arkansas Rental Property Tax Strategies

First-Time Landlord Mistakes to Avoid in Central Arkansas