There is a long list of mistakes landlords make – but there is also a short list – critical ones that if avoided from the get go improve success!
Here are the top 5 mistakes I think landlords make:
Buying “wrong”. This includes many things – just simply buying the wrong kind of property to rent, buying in the wrong area, buying with no capital- i.e, needing to rent ASAP because you have no money to support property without rent; to paying too much for a property.
Being unrealistic about your financial goals: overcharging for rent, being too cheap to make repairs, charging tenants for ridiculous things, etc. If you make the first mistake – you will make this one.
Picking the wrong tenant. When you make the first two mistakes – you usually make this mistake next. My philosophy is, a terrible tenant costs more than a vacancy.
Not knowing how to manage tenants. In other words, making your own rules, having a different set of rules, or just “winging it”. Again, if you make the first three mistakes – you will make this one.
Running your business in all different directions. The result of the top four mistakes leads to this one. If you run your rental home by the seat of your pants, if you think a think landlords “rule” and tenant won’t take you to court, if you think you know it all, think again.
As mentioned, landlords make many mistakes – but many mistakes can be avoided all together if these simple tips are followed!
This blog is written with my opinions and my opinions are presented with accuracy but not guarantees. Please talk to a professional before making any real estate, financial or agency decisions. Gabrielle Kamahele Rhind - 2014. If you want to reprint parts of this - just email me for my permission: KGCProperties@gmail.com .