Investing in a good rental property in a desirable area can be a highly profitable venture. However, while many renters view landlords as indolent people who kick up their heels and let passive income roll in, the role in question actually requires a bit more effort. So, if you invest in a rental property expecting to do very little, you’re going to be in for a rude awakening once your first tenants are settled in. First-time landlords looking to stay on top of property management would do well to avoid the following mistakes.
Not Researching the Location of the Property
In many respects, the location of a rental property is more important than the overall size or general quality of the property itself. For example, even if a property is on the small side and lacking in modern amenities, it’s likely to generate a fair amount of interest if it’s located in a popular, in-demand area. By the same token, a well-maintained, amenity-rich property located in an unpopular area may have considerable trouble garnering interest from prospective renters.
So, before committing to purchase a rental property, take care to research the area in which it’s based. In addition to educating yourself on the area’s crime rates, schools and local businesses, take care to thoroughly research rental rates. Should you discover that the property you wish to purchase will be unable to generate the desired monthly rent, your money may be better spent elsewhere. Additionally, Texans on the hunt for houses for rent in League City are likely to find a plethora of attractive options.
Not Having Properties Meticulously Inspected
As a general rule of thumb, you should avoid investing in rental properties that have failed to undergo meticulous inspections. In some instances, property problems are extremely apparent, but this isn’t always the case. Certain issues can only be identified and addressed by seasoned professionals. So, before you start filling out paperwork, make sure to have the property examined by highly-rated plumbers, electricians and building inspectors. Should they discover any problems, this may provide you with solid justification for requesting a reduction in price – or walking away from the deal altogether.
Not Hiring a Dependable Maintenance Staff
Hiring a dependable maintenance staff is an essential part of proper property upkeep. This is particularly true in the case of condo developments and apartment complexes. Given how many renters reside in these properties, it’s only natural that their respective owners would regularly receive an array of maintenance requests. As the property owner, attending to maintenance issues is your responsibility – and since you can’t be in multiple places at once, you’d do well to hire a knowledgeable maintenance staff. The right maintenance personnel will be able to address a host of upkeep issues in a timely and professional manner.
When seeking out the right maintenance personnel, make sure to limit your options to individuals who are able to interact with tenants in a courteous, personable manner. While technical knowhow is undeniably important, you’re liable to receive a steady stream of complaints if your maintenance people are consistently rude and dismissive to tenants.
Not Encouraging Tenants to Purchase Renters Insurance
No one who resides in a rental property should be without renters insurance. Some first-time property owners don’t understand that homeowners insurance doesn’t apply to properties that aren’t occupied by their owners. As such, renters insurance is practically a necessity for responsible tenants. A good renters policy will provide coverage for damaged or stolen property, accident liability and various other living expenses. So, if you aren’t strongly encouraging your tenants to purchase renters insurance, you’d do well to rectify this.
It’s easy to see why so many renters view property ownership as a lucrative venture. After all, from a tenant’s perspective, the landlord does nothing but sit back and collect rent checks. While it’s true that not every landlord is equally hardworking, more effort goes into property ownership than many people realize. This is particularly true when it comes to property management, which is arguably the most important part of any landlord’s job. So, if you’re new to rental property ownership and want to stay on top of property management, take care to avoid the blunders discussed above.
