5 Common Mistakes to Avoid When Managing Rental Properties
5 Common Mistakes to Avoid When Managing Rental Properties
Owning rental properties can be a great investment, but it's not always easy to manage them effectively - especially if you choose to self-manage. Whether you're a seasoned landlord or just starting out, there are some common mistakes that you should avoid in order to make the most of your investment. Here are five pitfalls to be aware of when managing rental properties:
1 - Failing to Screen Tenants Properly
One of the biggest mistakes landlords make is failing to screen tenants properly. While it can be tempting to fill vacancies quickly, taking the time to screen potential tenants thoroughly can yield dividends by setting you up for a mutually beneficial, longer-term tenancy. This includes checking their rental history, employment references and after-tax income status. Failing to do so can lead to problems down the road, such as missed rent payments, damage to the property and/or difficulty ending the relationship on good terms.
2 - Ignoring Maintenance and Repairs
Another common issue involves ignoring maintenance and repairs, or delaying the process of attending to them. Regular maintenance delivered by quality tradespeople can help prevent larger problems in the future. Addressing repairs promptly can keep your tenants happy and avoid further damage to the property. Make sure to set up a maintenance schedule and respond to repair requests in a timely manner, drawing from a pool of pre-vetted trade professionals.
3 - Overlooking Legal Requirements
As a landlord, it's important to be aware of your legal responsibilities. This includes complying with the Residential Tenancies and Rooming Accommodation Act 2008, the Property Occupations Act 2014, and other current legislation, which sets minimum housing standards and safety requirements, while also governing rules around inspection timelines, bond processing, property advertising and more. It is important for landlords and tenants to be aware of their rights and obligations under Queensland's various pieces of tenancy legislation to ensure that they are compliant with the law and that their tenancy arrangements are fair and equitable.
4 - Failing to Set a Fair Rental Price
Setting a fair rental price is crucial for attracting quality tenants and maximising your profits. Mispricing can result in long vacancies or tenants who don't pay rent on time due to financial hardship. Make sure to research the rental market in your area and set a competitive, realistic price for your property and ensure that tenants you place in the property are able to service the market rate comfortably.
5 - Poor Communication with Tenants
Finally, poor communication with tenants frequently leads to misunderstandings and problems. Make sure to communicate clearly with your tenants about expectations, rent payments, inspection processes and maintenance issues upfront. Establishing good communication from the beginning can help build a positive relationship with your tenants.
Avoiding these common mistakes can help you manage your rental properties effectively and make the most of your investment. By screening tenants thoroughly, addressing maintenance and repairs promptly, complying with legal requirements, setting a fair rental price, and communicating effectively with your tenants, you can create a positive rental experience for everyone involved.
It's possible that this all sounds like too much work. If you'd prefer to entrust the process to a transparent and reliable property management company, let the team at Wings Real Estate show you how our property management services can help you achieve your goals and make the most of your investment, while providing you with peace of mind. Let's connect.