10 fatal mistakes boarding house owners make (and how to avoid them)

Managing a boarding house looks simple from the outside. Accept tenants, collect monthly rent, done. But in reality, many boarding house owners lose millions of rupiah every year due to mistakes that could have been avoided.

Based on our experience talking with hundreds of boarding house owners in Indonesia, there’s a common pattern: small mistakes that pile up and eventually become big problems. From unrecorded payments, lost tenant data, to conflicts that lead to empty rooms.

In this article, you’ll learn 10 fatal mistakes that boarding house owners often make—and more importantly, how to avoid them. Let’s begin.

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1. Not keeping proper rent payment records

This is the most common and most dangerous mistake. Many boarding house owners rely on memory or minimal notes to track rent payments.

Why is this dangerous?

When you manage 5-10 tenants, you might still remember who has paid and who hasn’t. But as the number of tenants grows, or when some tenants pay late by a few days, everything becomes confusing.

Real impacts that often occur:

• Forgetting to collect from tenants who haven’t paid
• Wrongly collecting from tenants who already paid (damaging relationships)
• Not knowing exactly how much monthly income you have
• Difficulties when payment disputes arise

How to avoid it

Use a consistent recording system. You can start with a simple spreadsheet with columns for date, tenant name, amount, and payment status.

More importantly, have accurate foundational data: who is renting which room, what’s the rent price, and when does their lease end. Apps like Kamaru help you track all lease agreements and occupancy schedules in one place—so you always know who should be paying when.

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2. Not storing tenant data securely

ID photos mixed with vacation photos in your phone gallery. ID photocopies in folders somewhere unknown. Emergency contact numbers that were never recorded. This situation is very common among boarding house owners.

Why is this dangerous?

Tenant data isn’t just a formality. It’s your legal protection as a property owner. When problems occur—tenants running away without paying, property damage, or even legal issues—complete data can be a lifesaver.

Risks that may occur:

• Unable to track tenants who run away
• Difficulties during inspections from local authorities or police
• Important data lost when phone breaks or is replaced
• No identity proof if disputes occur

How to avoid it

Store all tenant data in a safe and easily accessible place. Use cloud storage or an app with automatic ID scanning features. This way, data is stored safely, automatically backed up, and accessible anytime.

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3. Not making written rental contracts

“The tenant is a good person. I’ve known them for a long time. No need for a formal contract.”

This sentence is often heard, and unfortunately often ends in problems.

Why is this dangerous?

A written contract isn’t a sign of distrust. On the contrary—a clear contract protects both parties. Without a contract, there are no binding rules about rent price, duration, deposit, or other terms.

Problems that often arise:

• Tenants claiming different rent prices
• Disputes about deposit returns
• Unclear who is responsible for damages
• Difficulties evicting problematic tenants

How to avoid it

Create a written rental contract for every tenant, without exception. The contract doesn’t have to be complicated—just cover:

• Identity of owner and tenant
• Address and description of room/unit
• Rent price and payment schedule
• Rental duration and renewal terms
• Deposit amount and return conditions
• Basic rules
• Signatures of both parties

Store contract copies securely, ideally in digital format that can be accessed anytime.

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4. Ignoring tenant background checks

When rooms are empty, the temptation to accept anyone who wants to rent is very strong. But accepting tenants without minimal checking can lead to much bigger problems.

Why is this dangerous?

Not everyone is a good tenant. Some have a history of not paying rent, damaging property, or even being involved in illegal activities. Without basic checking, you open the door to all these possibilities.

Risks that may occur:

• Tenants who often pay late or don’t pay at all
• Intentional or negligent property damage
• Conflicts with other tenants
• Legal problems if tenants are involved in illegal activities

How to avoid it

Do basic checks before accepting new tenants:

1. Verify identity — Make sure the ID is genuine, photo matches the person
2. Ask about work/activities — Student? Employee? Where does their rent money come from?
3. Request emergency contacts — Family or close friend’s number
4. Ask about previous rental history — Where did they rent before? Why did they move?
5. Trust your instincts — If something feels off, it’s better to refuse

These checks don’t have to be formal or complicated. Just a short conversation and good documentation.

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5. Not having a payment reminder system

Every month start, the same ritual repeats: checking one by one who has paid, contacting those who haven’t, waiting for transfers, then checking again. This process consumes time and energy that could be used for other things.

Why is this dangerous?

Relying on memory to collect rent is a recipe for late payments. Tenants are also human—they can forget. And when you yourself forget to collect, payments can be delayed for weeks.

Impact on business:

• Irregular cash flow
• Time wasted on manual follow-ups
• Awkward relationships with tenants
• Stress every month start

How to avoid it

Create a consistent reminder system:

• Message templates — Prepare WhatsApp templates ready to copy-paste
• Fixed schedule — Send reminders on the same date every month (e.g.: D-3, D-1, and D-day)
• Phone reminders — Use alarms or calendar reminders on your phone
• Occupancy calendar — With Kamaru’s occupancy calendar, you can see all tenant lease schedules in one calendar view, making it easy to know who’s due when

With a clear system, tenants know when to pay, and you don’t have to feel awkward collecting because it’s become an agreed routine.

Coming soon: Automatic payment reminder notifications are currently in development at Kamaru.

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6. Mixing personal and business finances

Rent money goes into personal accounts, mixed with salary, monthly shopping, and other expenses. Eventually it’s unclear how much profit actually comes from the boarding house business.

Why is this dangerous?

When finances are mixed, you lose visibility about the financial health of your boarding house business. Is your boarding house profitable? What’s the margin after deducting maintenance costs, electricity, and taxes? These questions are hard to answer without clear separation.

Problems that often arise:

• Not knowing actual profit
• Difficulties calculating taxes
• No reserve fund for sudden repairs
• Wrong investment decisions (renovation, expansion, etc.)

How to avoid it

Separate business and personal finances from the start:

1. Open a separate account — Specifically for boarding house income and expenses
2. Record all transactions — Income from rent, expenses for electricity, water, repairs
3. Set a “salary” for yourself — Take profit in fixed amounts, the rest stays in the business account
4. Prepare reserve funds — At least 3-6 months of operating costs

With this separation, you can clearly see whether your boarding house business is healthy or needs adjustment.

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7. Not documenting room conditions

Tenant checks out, and suddenly there’s damage in the room. Dirty walls, cracked doors, non-functioning AC. Who is responsible? Without initial condition documentation, this question is hard to answer.

Why is this dangerous?

Property damage is a cost that someone must bear. Without proof of room condition at check-in, it’s hard to prove that damage occurred during the rental period—not a condition that already existed before.

Conflicts that often occur:

• Disputes about deducted deposits
• Tenants refusing responsibility for damage
• Owners having no evidence for claims
• Relationships ending badly

How to avoid it

Document room conditions before tenants move in:

1. Photo every corner of the room — Walls, floor, ceiling, doors, windows
2. Photo all furniture and facilities — AC, bed, wardrobe, desk, chair
3. Note conditions in detail — “AC functions normally”, “Walls clean without stains”, etc.
4. Save with timestamp — Make sure photo dates are clear
5. Get tenant signature — Confirmation that conditions match documentation

Do the same at check-out. Compare conditions, and if there’s damage, the evidence is clear.

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8. Ignoring routine maintenance

Waiting until something breaks before fixing it. AC leaking? Fix it. Pipe clogged? Call a technician. This reactive approach feels economical at first, but is actually much more expensive in the long run.

Why is this dangerous?

Preventive maintenance is always cheaper than emergency repairs. An AC that’s cleaned regularly will last for years. An AC that’s neglected can break down completely and need replacement.

Long-term impacts:

• Higher repair costs
• Damage spreading to other areas
• Dissatisfied tenants who move out
• Decreased property value

How to avoid it

Create a routine maintenance schedule:

Monthly:

• Check for pipe and roof leaks
• Inspect switches and outlets
• Clean drainage

Every 3 months:

• Service AC
• Check door and window conditions
• Inspect furniture

Annually:

• Repaint if needed
• Have electrical installation checked by experts
• Evaluate overall condition

Record all maintenance performed. This helps predict when equipment needs replacement and budget for it.

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9. Not having clear house rules

“Just don’t be noisy and don’t bring overnight guests.” Rules like this are too general and can be interpreted differently by everyone. What time is considered noisy? Does a guest who comes in the afternoon and leaves at night count as “staying overnight”?

Why is this dangerous?

Unclear rules cause conflicts. Tenants feel treated unfairly because rules are applied subjectively. Owners are frustrated because tenants “don’t follow rules”. But the problem isn’t with the people—it’s with the ambiguous rules.

Conflicts that often occur:

• Unclear curfews
• Confusing guest policies
• Use of shared facilities
• Division of electricity and water costs
• Common area cleanliness

How to avoid it

Create house rules that are written, specific, and given from the start:

Examples of clear rules:

• “Quiet hours: 22:00 - 06:00. No activities that disturb other tenants allowed.”
• “Guests allowed until 21:00. Overnight guests must be reported and charged Rp 50,000/night.”
• “Electricity is included in rent with a maximum limit of Rp 150,000/month. Excess is tenant’s responsibility.”
• “Trash must be disposed of in designated areas daily. No accumulating trash in rooms.”

Make sure every tenant reads and signs agreement to these rules.

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10. Managing everything manually

Complicated Excel spreadsheets. Notebooks getting thicker. Photos scattered in various folders. All information exists, but spread everywhere and hard to access when needed.

Why is this dangerous?

Manual systems have limits. When the boarding house business grows—more rooms, more tenants—manual systems become overwhelmed. Errors happen more frequently, administration time increases, and stress goes up.

Signs that manual systems are no longer effective:

• Spending more than 5 hours/week on administration
• Frequent recording errors
• Difficulty finding needed information
• No complete picture of the business

How to avoid it

Switch to an integrated digital system. Property management apps like Kamaru are designed specifically for Indonesian boarding house owners, with features:

• Property dashboard — View all properties and rooms in one display
• Tenant management — Complete data with automatic ID scanning
• Occupancy calendar — Visualize rental schedules across all properties
• Cloud backup — Data is safe and accessible from anywhere

Time invested in initial setup will pay off with long-term efficiency.

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How to avoid these mistakes

After reading the 10 mistakes above, you might realize that some (or even all) you’ve made before. Don’t worry—it’s never too late to improve.

First step: Audit current conditions

Evaluate the system you’re using now:

• How do you record payments?
• Where is tenant data stored?
• Is there a written contract for all tenants?
• When was the last maintenance done?

Second step: Prioritize improvements

Not all problems need to be solved at once. Start with the most impactful:

1. Payment recording — This most directly affects cash flow
2. Tenant data — Basic legal protection
3. Written contracts — Can be applied to new tenants first

Third step: Use the right tools

Spreadsheets can help for small boarding house, but if you’re serious about growing your business, consider a property management app. Setup only takes a few minutes, and you’ll see results in the long term.

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FAQ

Which mistake is the most dangerous?

Not keeping proper payment records is the mistake that most directly impacts finances. But in the long run, not having written contracts can cause much bigger losses if legal disputes occur.

Do small boarding house (5-10 rooms) also need digital systems?

Yes. When your boarding house is still small is actually the best time to build good systems. When the business grows, you already have a strong foundation. Plus, many apps are free for basic use.

How much does it cost to avoid these mistakes?

Most improvements don’t require money—just habit changes. Contracts can be made yourself, documentation can use phones, recording can use free spreadsheets. Paid apps usually start from Rp 50,000-100,000/month, much cheaper than losses from the mistakes above.

How to start improving if things are already messy?

Start from what you can control now. For new tenants, apply the correct system from the beginning. For existing tenants, update data gradually—ask for clear IDs, make new contracts when renewing, start recording payments digitally. It doesn’t have to be perfect all at once.

Will tenants object to strict rules?

Good tenants actually appreciate clear rules. They know what’s expected and can adjust. Those who object are usually tenants who will become problems later.

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Conclusion

Managing a boarding house doesn’t have to be complicated, but it does require good systems. The mistakes above may seem trivial, but their impact can be huge—from financial losses to prolonged stress.

The good news is all these mistakes can be avoided. With small habit changes and the right tools, you can manage your boarding house more efficiently and peacefully.

Ready to manage your boarding house more professionally? Try Kamaru free today. Setup takes only 5 minutes, and you can immediately see all properties, tenants, and payments in one dashboard.

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Related articles

• Getting started with Kamaru: your complete guide
• Occupancy calendar: complete user guide
• Scan tenant ID: complete user guide