- It's usually easier to try to do things right the first time...
Investing in something and failing to protect that investment is like throwing money away.
So, if you save up for a down payment, make an offer for a rental property, and succeed, that’s where the hard work starts. You’ll have to get it ready, find good tenants, and maintain a good professional relationship with tenants with the hope they’ll stick around.
It’ll be much easier to keep good tenants if you avoid the four mistakes you’ll read about below.
- Neglect Regular Maintenance
One sure way to jeopardize your investment property strategy is to neglect routine maintenance. Homeowners know there are important tasks that must be done at different intervals.
Routinely ignoring or delaying proper maintenance could result in expensive repairs that drain your savings. You can also be sure tenants and would-be tenants won’t take kindly to a rental property that’s run down or shows a lack of regular upkeep.
If you don’t have the bandwidth to maintain your investment property, the answer is to hire a property management firm that can handle routine maintenance, repairs, and upgrades.
You’ll have better results if you research to find a service provider located near your rental property. If you rent out a townhouse in Georgetown, Texas, for example, your best bet is to retain the services of a property manager in Georgetown. You’ll want help from a company that can get to your investment property without delay if there’s a problem.
- Overlook Tenant Screening
Another mistake you can’t afford to make is overlooking the tenant screening process. You can’t afford to give just anybody keys to your rental units. That’s like rolling the dice — all while realizing the stakes are extremely high and that you have the most to lose.
Screening tenants doesn’t mean you won’t end up with someone who causes you trouble. But it will increase the odds of finding good tenants who will pay on time every month, respect your property, and cause you no problems. A property management firm will screen applicants in a way that helps weed out people who would likely cause you issues.
They’ll do so in a legally responsible way so that a rejected applicant won’t have grounds to sue you for discriminating against them. If you try to screen applicants independently, you may unwittingly reject some candidates on grounds that are illegal. You don’t want to open yourself up to unnecessary problems. A property manager can help prevent issues.
- Set Rent Unreasonably High
Another mistake to avoid is setting the rent too high. It’s understandable if you wish to get as much as you can. But don’t overdo it. It’s important to understand how much other landlords charge in your area for similar properties — something a property manager can help with.
If you’re overpricing rent, you may turn off tenants and make your investment property undesirable. You may also see a higher-than-normal turnover rate and longer vacancies since raising the rent too high can throw a wrench in your plans by making it harder to find and retain tenants.
Discussing rental rates with a property manager is one of the best things you can do. You’ll have the information you need to make a decision that benefits you and your tenants.
- Ignore Tenant Communication
Yet another mistake to avoid at all costs is ignoring tenant communication. Customer service can’t be an afterthought. You must communicate effectively with your tenants to answer their questions and alleviate their concerns. Taking them for granted isn’t an option.
If maintenance or repairs are scheduled, you need to let tenants know ahead of time. That’s especially true if any work done in or around the rental property will inconvenience tenants. Poor communication will cause misunderstandings — and that’s not good for you or your tenants. It could drag down tenant satisfaction rates and contribute to higher turnover.
Avoid these four mistakes at all costs. It’s not worth the hassle, and it’s not in your best interests. If you’re unsure how to proceed after buying an investment property, hire a property manager. That can be one of the best investments you make.