1. Not putting in enough effort at the start
Complete any maintenance and repairs that need to be done to have your place in the best possible condition before renting it out. It shows your prospective tenants that you expect them to look after it, and it shows that you care and will be responsive.
2. Not budgeting for maintenance
Following on from Tip #1, it takes money to keep your place in good condition. If you let maintenance and repairs slide because you don’t have the funds then you property will quickly go downhill. You will lose value in your property and your tenants. You will save money in the long run if you fix things as they come up instead of letting them get out of hand.
3. Treating it like a hobby, rather than a business
You are in business as soon as you have tenants. Therefore, set it up as such – have separate accounts, use an accountant, make sure you pay tax. Treating it like a business from the start makes you look professional and great people want to ‘do business’ with great people.
4. Impatient to rent it out
Renting it out as fast as possible opens you up to tenants that you don’t want. Have a list of standards, and don’t negotiate on them. You don’t need to be too nice. You are the landlord, not a mate, so stick to your guns and rent only to those who meet your criteria. This goes with Tip #4, if you are professional then you will attract other professionals who are the kind of people you want to rent to.
5. Not understanding the law
If you don’t understand the tenant/landlord laws for your area, you open yourself up to a world of legal hurt! Do your due diligence and find out all you need to know.
What other common mistakes do newbie landlords often make? Let me know your thoughts in the comments below.