Before you jump in and purchase your first rental property, read this to avoid making these common mistakes new property investors have made in the past! We share not only what these mistakes are, but how to avoid them too! Find out more now!
Many new property investors are so eager to jump into their new venture that unfortunately they make irrecoverable mistakes. As the North Shore and Auckland city property managers, we’ve seen plenty of successful and sadly failing new property investors who’ve bitten off more than they can chew. Today we’re going to share with you how to avoid making some of the common mistakes new investors make when beginning their property investment journey.
What Are the Common Mistakes New Property Investors Make?
When you’re entering the property investment industry, it’s easy to get carried away and make decisions poor decisions. This is made even harder because, as the saying goes, you don’t know what you don’t know. Wouldn’t it be great to have the power of hindsight? Now you do, because we’re sharing with you the common mistakes new property investors make so you can go in forewarned of what not to do!
- Not having an exit plan – if circumstances change, how are you going to sell your rental or change tactics without losing money?
- Underestimating maintenance costs – keep aside more money than you think you’ll need to maintain your rental.
- DIY – yes, new property investors can save money doing DIY renovations on their rentals. The issues are: will the result be the same quality and be done at the same speed? If you’re experienced in basic house renovations and can complete them within a short time, you should be fine. If you’re only a weekend DIYer, then consider that every week your property stands empty, you’re losing rental income.
- Failing to get advice – there’s no better advice for newbies than to hear it from the horse’s mouth. Chat with us, your local Auckland property managers and landlords which have owned properties for many years. Don’t forget to meet with your accountant and lawyer too.
- Juggling property management with other roles – you might save a few dollars managing your own rental, but you lose time spent with your family and potentially increasing your risks by not knowing all the rules and regulations of the rental industry.
How to Avoid Making Mistakes as a New Property Investor
We’ve listed some of the common mistakes new landlords make, along with some solutions. But getting down to the nitty gritty, there is no substitute for experience. It’s so easy to make a mistake with your tenancy agreement, which ends up costing you time and money. Your solution is to hire a property manager to set up any agreements on your behalf.
To reduce your risks when it comes to rental property damage, ensure that thorough checks are done on prospective tenants. This is a service we offer our landlords. We also keep on top of your property maintenance, not only through regular inspections where we identify issues, plus reported ones from your tenants. The last thing you want is a rental which is unrentable and worth less than when you purchased it.
For further advice on how we can help you not make mistakes with your new residential rental, contact us today!
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