1. Under-renting the property and failing to keep pace with the increasing market
When interest rates, strata levies and land tax rise, the landlord is left to carry the extra burden. It is only fair and sensible to ensure that the income the property generates is at the market rate and not significantly below.
2. Attempting to lease a vacant property above market rent for a prolonged period.
Trying to increase the rent by a small amount can add up to a lot if the property sits vacant. It is better to have a reliable tenant at a fair price than no tenant at a dream price.
3. Not inspecting the property often enough to witness the condition of the property.
Investment properties usually hold a great deal of the landlord’s net worth. It can be complacent to accept a condition report from the agent every 12 months as to the true conditon. It is always best to check it out for yourself.
4. Getting emotional about the property and overlooking the fact it’s an investment.
An investment property should be treated as such. Some landlords treat it as though someone else is living in their home and become too emotional about tenants living habits and lifestyle.
5. Failing to spend money on minor maintenance
When it comes to repairs, a little expenditure today can save a lot tomorrow. Good quality properties attract good quality tenants.
6. Making large rent increases, risking the tenant vacating and paying a relet fee.
Paying an agent to re-lease a property can cost anywhere between one and two weeks rent. Too many landlords overlook this point when renegotiating rents with existing tenants.
7. Not having enough respect for good paying and reliable tenants.
A stable tenants that looks after the property as if it were their own and who pays on time is invaluable to you as a landlord. Don’t make unrealistic requests or over manage good tenants.
8. Overlooking or ignoring issues and requests the tenants have.
A happy tenant is more likely to be a good payer. If the landlord does not look after the property, why should the tenant? Both the landlord and the tenant have a mutual interest in maintaining the standard of the property.
