Getting started with your rental property goals can feel like a big accomplishment, and it is! Whether you've been handling a few rental properties for years or are brand-new to rental property investments, mistakes can derail your progress.
Odenton property management companies have seen a few potential pitfalls for DIY property investors. It's such a challenge to get up to speed on everything involves with maintaining successful rentals that it only makes sense that some of these issues arise. We're here to help! To stay on track toward their goals, investors must avoid these common mistakes.
Giving Too Much Leeway in Applicant Screening
If you've never had a troublesome renter who stops paying or damages your Odenton property, you may be lulled into a false sense of security. While many renters will be great, the way to make sure you keep it that way is by screening your renters.
By using the information they give you on the rental application and applying a legally admissible check of their background, you can unearth rental-related red flags. Knowing if they have a history of spotty payments, property damage, bankruptcy, or defaults helps you make an informed choice. Screening residents to choose quality renters helps investors avoid being blindsided by a renter who was kind and easy to talk to but who later refused to pay the rent.
Uninformed Rental Rates (Too Low or Too High)
The best rental rates always start with a market analysis, yet not every property owner takes the time to do a thorough one. Rental market analysis involves researching not only comparable properties and what their rental rates are but also typical vacancy times, locations, and how in-demand a property or neighborhood is right now.
Setting the rental rate arbitrarily can lose money for Odenton investors in two ways:
- If your rate is too low, you might be leaving money on the table—even with on-time rent collection every month.
- If your rental rate is too high, you may struggle to get enough qualified applicants to find a great resident.
The ideal rate keeps your property competitive and generates the income you need to maximize ROIs!
Costly Maintenance Issues Due to Too Much DIY
Many people who get into the rental property business have some experience working around a house. They also assume that DIY fixes for many maintenance issues can save a few dollars.
However, it's easy to overestimate one's skills as a maintenance or repair person and "DIY" your way to a major problem. Conducting repairs or routine maintenance without a professional can actually be more expensive than having a trusted suite of repair and maintenance professionals who can service your property.
Unless you're a licensed maintenance professional, leave rental repairs to the team of vetted contractors that Odenton property management experts provide!
Surprise Expenses and Missed Financial Expectations
It's easy to assume that your rental income will go almost entirely into your own pocket. However, many new property investors are surprised by the many expenses associated with running a rental property.
Rental properties have ongoing costs that investors must cover through rental income. Planning and budgeting for estimated monthly and annual costs can help you avoid the surprises of some expenses. It's critical to price rentals appropriately to generate enough income for ongoing costs—then count remaining income as "profit."
Streamlining operations through an Odenton property management company can help you with a more realistic understanding of the real estate investment business. Don't get us wrong: there is plenty of money to be made! However, investors must be patient with this long-term investment strategy to manage financial expectations and build long-term wealth.
Not Hiring a Reliable Property Manager to Reduce Headaches
Many property investors could give themselves a leg up and reduce their stress at the same time if they just hired an Odenton property management company. The right property manager:
- Is invested in professional marketing and applicant screening to make sure investors aren't forced to compromise and accept unreliable renters as residents. Better renters boost your returns!
- Keeps an eye on the rental marketplace and conducts essential market analysis when it's time to set the monthly rent amount or help investors find a new property with excellent potential. We want your property to rent fast, but we're just as motivated as you are to get a competitive rate that makes us both money.
- Has a team of trusted maintenance and repair vendors who are focused on doing a great job.
With the right property management partner, it's easier for investors to avoid common mistakes and make more money!
Partner With the Best Odenton Property Management to Avoid Costly Mistakes!
By choosing a great Odenton property management company, you save yourself significant learning curves, stress, and income loss. There's no need to reinvent the wheel when property managers like our Renters Warehouse BW Metro RentEstate™ Advisors help property managers avoid all of the pitfalls above! If you're dealing with too many costly mistakes, we're here to help fix them and avoid them for you in the future.
Download our guide to finding a property manager today to learn more!