3 common investor mistakes to avoid
Not increasing rents
Many property investors fall into the trap of not increasing the rental price when renewing a tenant’s lease. If you do this, you can end up in a situation where you need to increase your rent by at least $50 to catch up on past stagnant rent prices. When your leases come due for renewal, consider increasing the rent by $10 or $20. These small increases are more palatable tenants, and your rent will grow in line with market growth.
Leaving your property vacant due to high rent
Just a week of vacancy can undo any of the gains you might have seen through a lofty increase in your rental prices. Be smart about the prices you set for your rental properties and talk to your property manager for their recommendation. You’d be better off having a tenant locked in quickly rather than having your property sit vacantly and losing money.
Managing your own property
It can be tempting to think you can manage your investment property yourself. However, there are hundreds of little tasks and processes that go into efficiently managing a rental property. There are a number of legal obligations that you must follow or you could miss entirely. Leave the management of your property with a professional so you can focus on your investment strategy.
If you have any questions, or need clarification on any of the above, please contact Anna Marten, our Head of Property Management, on 9651 1666 or firstname.lastname@example.org.
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