Owning rental properties is without a doubt still a great investment to make. Every landlord in the very beginning has dreams of owning a profitable rental property that offers excellent ROI but there are some mistakes that landlords make which can eat into rental profits and make life difficult.
In this article we will break down the most common landlord mistakes so you will know what you shouldn’t do when you get ready to purchase your first investment property.
Common Landlord Mistakes
1. NOT PROPERLY CRUNCHING YOUR NUMBERS
When looking to buy an investment property, it’s crucial to first calculate all your expenses and what you can reasonably expect to get in rental profit. If you skip this step, you could wind up in trouble when you realize that your monthly rental income only covers part of your monthly rental expenses. Doing the math may sound like a pain, but it’s worth it when you consider your bottom line.
2. CHOOSING A BAD RENTAL LOCATION
Location is a highly influential factor as to why renters choose to rent where they do. If you’re a new investor looking for a rental property, work with a real estate agent who is familiar with the area and can point you to some of the better neighborhoods for rentals. In general, tenants look for areas that are close to public transportation, dining, shopping, schools and universities.
3. TAKING TOO LONG TO TURNOVER A UNIT
The expenses of turning over a unit can add up quickly (mortgage, utilities, cleaning, repairs, and advertising), and the longer the unit is empty the more the expenses start to pile up. In order to be profitable as a landlord, you want to turn over the unit quickly to avoid extended vacancy periods.
4. IGNORING MAINTENANCE ISSUES
Not addressing rental property maintenance issues quickly can lead to much bigger problems down the road. What may have started out as a small leak that goes unfixed could become a huge problem one day when the unit is flooded. In the event of a tenant turnover, you may want to take advantage of the vacant property and perform maintenance without the hassle of scheduling conflicts and bothering any current tenants. A rental unit that’s in good condition when you’re looking for a new tenant is much more likely to attract a better quality renter.
Avoid Making Landlord Mistakes With RPM Central Valley
The best way to avoid making landlord mistakes is to hire a property management company. Contact RPM Central Valley today by calling us at (209) 572-2222 or click here to connect with us online.