What are the most common mistakes made by investment property owners?
1. Purchasing a property in poor condition.
Even though the purchase price may be attractive, the amount of corrections required to make it inviting to potential tenants can consume every bit of profit made available by a tenant occupying the property.
2. Requesting a rent amount that is too high.
This mistake leaves you with long term vacancies while generating no monthly income. Tenants in the rental market have a good idea of what current rents should be.
3. Not keeping an open mind regarding applicants
The changing economy has forced us to make decisions and review tenant applications differently. On average, tenant prospects have lower credit scores than the applicants from a few years back.
4. Failure to take advice from your property management company.
The rental property business is complex. But years of experience have introduced us to almost every obstacle rental ownership may present. Trust in your management company. We are here to protect your best interest.
5. Not addressing tenant concerns in a timely manner.
Failure to respond to tenant requests can create additional issues for a rental owner. The rental market is highly competitive and tenants within your complex talk with each other. Failure to respond can lead to a search for better managed living opportunities.