What Are The Six Common Costly Landlord Mistakes?
Over the years, I’ve noticed these six common landlord mistakes keep occurring when landlords manage their property themselves.
And, in some instances, unfortunately, when using a property manager who is not acting professionally.
1. Avoid making “friends” with your tenants. Treat them like your best customer.
Investing in property is a business; it is best to develop and maintain a professional “business” relationship with your tenants instead of a “personal” one.
That way, it is easier to keep emotions intact; this will ensure that you act in a responsible professional manner at all times.
Your tenants will respect you more when you treat them as “customers”. .
2. Not keeping your property well maintained.
Where possible, do not defer repairs and maintenance; get it done regularly; that way keeping the property in good condition will prevent any reduction in value and ensure that the property is tenantable at the best weekly rental.
When getting work done, please use tradies with a proven history, reliable and trustworthy that do a good job.
Often I see landlords trying to cut costs by employing someone that is not competent and doesn’t do the job to a high standard which can cost the landlord more money in the long run.
3. Ignoring Tenant Communications, especially requests for repairs & maintenance that interrupt their daily living.
Nothing is more frustrating from a tenant’s perspective than been ignored, especially when they have concerns relating to genuine maintenance issues that affect their day-to-day lives.
Sometimes these issues are minor and can be attended to with minimal cost or fuss.
At times it will not be appropriate to undertake what the tenant has asked if you’re not going to fulfil the tenant’s requests; it’s important to communicate this to them promptly.
4. Avoid being disorganised
Some landlords do not use a system, choosing instead to make do with a mass of unfiled paper which records their rents collected and expenses. It is essential to use a system that records rents collected and paid to dates, at the very least.
To optimise your investment property activity and ensure all legitimate costs are captured and offset where possible, you need a reliable system that is very thorough and records all the information for each property in a clear format.
If you don’t like been involved in the day to day overseeing of your property, it’s better to engage the services of a competent property manager rather than do a half-hearted job.
Are you aware that it is an unlawful act not to keep accurate records?
5. Failing to do regular Property Inspections
Regular property inspections can save you money. When you inspect regularly, you can see how the tenant affects your property and if you need to take any action regarding this.
You can record the condition of the property and the appliances and make informed repairs and maintenance decisions.
Six monthly inspections or more prolonged periods can mean that damage or costly repairs may occur, which could have been avoided or minimised with more frequent inspections.
6. Love Property but Hate Managing it?
It takes a great deal of knowledge, skill, experience and dedication day in day out to be a competent self-managing landlord.
If you don’t have the time or inkling to become proficiently skilled yourself, it’s best to acknowledge this quickly and get professional help.
If any of this resonated with you and you would like some help, let’s meet for a coffee and a chat call 027 249 8295 to see if we make a good fit
Or email if you have any questions
All Ways Property Management is here to grow your Palmerston North Investment Property Returns with no fuss.
Call Richard on 027 249 8295 today.’