4 Mistakes New Rental Property Owners Must Avoid

10 September 2022

People enter the rental property business for various reasons.

Some aim to leverage multiple rental properties to draw a full-time income, while others may rent out a couple of homes to diversify their income streams.

Others still, may rent out their condo, townhome, or house to increase their revenue or offset their cost of ownership. Such costs may include mortgages, property taxes, etc.

Whether you plan to rent out one rental property or several, you should avoid some critical errors. A bad mistake can significantly impact your rental property business, costing you time, money, and peace of mind.

Mistake #1 Buying the Wrong Property

If you’re purchasing property solely to generate a rental income, please ensure it’s the right one. Consider purchasing costs, area rental rates, and location.

Note: Do not be charmed by properties with low prices that need repairs. Underestimating repair bills is one of the most common mistakes new buyers make. It’s best to get professional advice before signing the dotted line.

Mistake #2 Not Educating Yourself on Local Laws

Landlords have many responsibilities and obligations that can vary from province to province.

For instance, many new rental property owners don’t realize that they must issue tenants proper notice in Ontario, Canada, before entering their homes.

Note: Before starting your rental property business, educate yourself on these rules to avoid penalties and liability concerns.

Mistake #3 Ignoring Property Management Services

While the rental property business can be lucrative, it can also be time-consuming and stressful. Regular calls from tenants can impact anyone’s peace of mind while visiting the property for inspection or repairs can take precious hours.

That’s why many landlords are using property management services to optimize their business. Here are some advantages of hiring a top property management company:

1. A good property management team usually offers real estate consulting services, helping you find the right investment property in a neighborhood that lets you generate a profit.
2. You’ll always be in the loop with regular financial reports on your investment.
3. An experienced property management company usually has excellent market reach, finding tenants through online marketplaces, social media networks, and other channels.
4. You don’t have to worry about relations with your tenants when your property manager collects rent on your behalf, supports your tenants when needed, and does the rest of the heavy lifting.
5. Some of the best property management companies offer around-the-clock support to ensure that you and your tenants have peace of mind.

Mistake #4 Selecting the Wrong Tenant

One of the biggest mistakes you can make in the rental property business is to select the wrong tenant. A nightmare tenant may damage your property, fail to report maintenance concerns, use your space for illegal activity, or simply refuse to leave.

The best way to avoid an undesirable tenant is to complete employment, criminal, and credit checks before the interview process.

Note: Verified letters from previous landlords can also help you determine the quality of a potential renter. Of course, a top property management team can also assist with tenant selection.

These are four mistakes new rental property owners must avoid. Stay proactive and partner with professionals to give yourself a chance to succeed.

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Investing in Property is Investing in Your Future

The idea of investing in your future is something that many people think about but don’t know how to start. We all know that planning for the future and looking ahead is something we should do, but the specifics can be hard to pin down. Whether you are trying to plan for your retirement, for your children’s future, or for your company, having long-term plans and goals is an important consideration. When it comes to preparing for your future, it is worth thinking about investing as an option, especially if you are uncertain about if or when you will retire. Property investment is a lucrative and worthwhile strategy for continuing savings and it brings both monthly returns and potentially large profits when the time comes to sell. Investing in property is one of the best ways to prepare for your financial future. There are two major benefits to property investment and the first of these is rental income. If you are considering investing in buy to let property you can earn a monthly rental income from the tenants who are living in your property. The second benefit is capital appreciation – the amount that your property goes up in value by while you have the investment. If you are able to find a property with high yields, you will find that the investment can pay for itself after a few years, meaning that in the future your property is just making more money. Property prices in the UK have risen by an incredible 281% since 1996, and in London, prices have risen by 501%. According to the Nationwide house price index, buy to let property investors typically earned returns of £14,987 for every £1000 that was invested twenty years ago. Having a long-term property investment strategy can lead to greater financial independence and if you can afford to invest early, you can benefit from a longer amount of time for the property to go up in value. Many successful property investors have used the profits from selling one property to build up a portfolio and can live comfortably off their rental earnings into retirement. There are some considerations when it comes to property investment that it is important to be aware of. If you need to get money out of your investment quick, selling a property can be a long and expensive process so it is important you have a backup plan too. There are also other fees, costs and tax implications that you need to consider before investing in property, like ground rent for an apartment or stamp duty. However, there are many more benefits to property investment. Property investment remains one of the most popular and trusted investment strategies and many people have become incredibly wealthy by investing in the right property at the right time. It is important that you think carefully before investing and choose a property that is a great bet for the future. Property investment specialists RW Invest have a range of buying to let properties available at below market value prices, with guaranteed rental yields for a set period, allowing you to plan your investment and returns. Property generally appreciates considerably over time and this can make owning a property in a high growth area a smart investment for the future. You can hold on to a property while its value appreciates and as you are earning rental income at the same time, owning a buy to let property is a profitable situation to aim for. Read Also: Benefits Of Investing In City Centre Property How To Sell Your House Fast?! Five Must-Know Tips To Move Your Property!

Here Are a Few Reasons Why You Should Use Real Estate Farming Postcards to Increase Visibility of Your Business

In this age of digital marketing, you might be wondering whether postcards still work? Well, the truth is that they are still a highly effective marketing strategy for realtors. In fact, the right postcard can give you a better ROI than more conventional advertising methods. Real estate postcards can be a valuable asset to your real estate farming strategy since they are easy and cheap to make. Real estate farming is where you plant, nurture, and cultivate leads in a specific geographical area or demographic. But affordability and simplicity are not the only reasons you should consider adding real estate farming postcards to your strategy. Here are a few compelling reasons why you should incorporate real estate farming postcards within your marketing strategy. If you’re looking for some unique real estate farming postcards for your business, visit Wise Pelican for more information. 1. Postcards are More Likely to Be Opened and Read Picture this scenario: you’ve crafted the perfect marketing email and sent it to everyone on your emailing list. How many of those emails will land in the recipients’ inbox? Of those that do, how many are actually opened? With email marketing, you’re not really sure if all, or at least most of your intended recipients, will receive the message. But with postcards, you can be certain that everyone you send a postcard to will receive it in their mail. Postcards exponentially increase the probability of your leads learning about your real estate business tips. 2. They Can Give You Better Response Rates Direct mail isn’t obsolete. In fact, it’s still a common form of communication among people of all age groups, including young people. Since you’re directly sending the postcards to each individual on your list, the postcards will have a personal touch and, therefore, yield better response rates. A recipient is likely to pay attention to the message on your postcard, and if it’s convincing enough, get in touch with your real estate business. While designing the postcard, try and think of ways you can make your postcard stand out from the pile to further improve your response rates. It could be adding persuasive keywords, using the recipient’s name, and using a professional color scheme. 3. They Will Act as a Tangible Reminder of Your Business How many times have you seen a TV commercial that you found interesting but ended up forgetting about it within the next hour- or even minutes. Not quite effective, right? A postcard, however, is a tangible and lightweight piece of marketing collateral that your clients will find easy to keep. And, if you design it in the right way, your target leads will likely hold on to it for longer. What does that mean for your real estate business? Postcards won’t just put your business out there. It will also act as a reminder of your business. Your leads won’t forget about you quickly, and even if they do, the postcard is there to remind them. They are also likely to pass on your card to others who may need real estate services. Use Real Estate Farming Postcards to Get Your Business Out There Cheaply Postcards, if used appropriately, can give you better results than most hyped digital marketing solutions today. Not only do they help you reach your potential clients directly, but they also increase the probability of the target recipients taking the next step of action depending on your CTA. Additionally, they are very cost-effective, meaning you can create brand awareness without spending thousands of dollars that you could otherwise focus on other more pressing business concerns. Read Also: You Need to Know the Pros and Cons of a New Career in Real Estate Stocks Versus Real Estate: Which Is The Better Investing Option?

Blunders to Avoid When Preparing to Purchase Your First Rental Property

When looking at how much passive income some rental property owners are able to generate on a monthly basis, it’s only natural that you’d want a piece of the pie. However, while rental property ownership can be extremely lucrative, it can also prove highly stressful and financially draining if gone about in the wrong manner. As such, many inexperienced first-time investors wind up making a plethora of ill-advised blunders when seeking out their first rental properties. List Of Prime Blunders One May Make While Purchasing First Rental Property 1. Purchasing Properties You Haven’t Seen Frankly, it should come as no surprise that purchasing a rental property sight unseen is a bad idea for a multitude of reasons. Sure, the seller can send you photos, but in the absence of an actual walkthrough – or, at the very least, a virtual walkthrough – you really don’t have any idea what you’re getting. So, no matter how amazing a deal the seller presents you with, you’d do well to avoid investing in a rental property you or a trusted proxy haven’t had the opportunity to personally tour. 2. Purchasing Properties That Haven’t Undergone a Proper Inspection In addition to avoiding properties that you haven’t seen in person, you should abstain from purchasing any property until a proper inspection has been conducted by a building inspector or home inspector. Even if all appears to be well, certain issues can escape the gaze of nonprofessionals. Additionally, depending on the scope of these issues, you may find yourself regretting a seemingly solid purchase. Seasoned inspectors are able to pinpoint and diagnose a sizable assortment of issues, including structural damage, electrical concerns, and plumbing problems. A thorough inspection will help ensure that you have all the information you need to make an educated, informed decision. As an added bonus, the results of an inspection can put you in a good bargaining position. If an inspection unearths issues that both you and the seller were unaware of, you may be able to request a reduction in price. 3. Purchasing Fixer-Uppers To be clear, many of the rental properties you look at are going to require small to moderate repairs and/or renovations. In fact, in many cases, sellers will be willing to deduct the cost of repairs/renovations from the final price. However, there’s a stark difference between a property that requires a normal amount of work and a fixer-upper. Of course, this isn’t to say that a fixer-upper can’t be a worthwhile investment. Depending on the area in which it’s located, a fixer-upper may ultimately make you quite a bit of money. Still, experienced property owners often recommend that first-time investors abstain from purchasing fixer-uppers – and for good reason. If your experience with repairs, renovations, contractors or budgeting is lacking, choosing a fixer-upper as your first rental property is practically guaranteed to be a disaster. The whole experience is very likely to cost you more than it stands to make you, deplete your finances and cause you immense frustration. Once you have more property investment experience under your belt, acquiring a fixer-upper is liable to prove considerably less stressful. However, in the interest of helping your freshman foray into property ownership go as smoothly as possible, don’t even consider making one your first purchase. 4. Failing to Consult Experts All fledgling rental property owners stand to benefit from the guidance of seasoned investors. So, if you have any friends, family members, coworkers, or acquaintances who have experience owning and/or operating rental properties, take care to seek their advice throughout the course of your first property acquisition. Additionally, both first-timers and seasoned investors can profit handsomely from doing business with a good real estate investment company. Rental property ownership is arguably the ultimate method of generating passive income. Making a small fortune from various investments on a monthly basis is a prospect that’s simply too good for many aspiring landlords to pass up. Still, approaching rental property owners in the wrong manner can prove ruinous to both your mental health and finances. That being the case, if you’re currently shopping around for your first property, there are a number of mistakes you should actively work to avoid. By steering clear of the blunders discussed above, you can set the stage for long-term success in the rental property game. Read Also: How to Protect Your Property as a First Time Landlord? Is Property Investment Still a Good Way to Make Money? 5 Best Things To Know Before Renting A Property In Kings Cross What To Look For When Renting A Property In St Albans: Checklist & Advice

4 Mistakes New Rental Property Owners Must Avoid

Mistake #1 Buying the Wrong Property

Mistake #2 Not Educating Yourself on Local Laws

Mistake #3 Ignoring Property Management Services

Mistake #4 Selecting the Wrong Tenant

Top Things To Do Before Moving Into Your Own Home

What Should You Do Before The House Movers Arrive?

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Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

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Investing in Property is Investing in Your Future

Here Are a Few Reasons Why You Should Use Real Estate Farming Postcards to Increase Visibility of Your Business

Blunders to Avoid When Preparing to Purchase Your First Rental Property

4 Mistakes New Rental Property Owners Must Avoid

Mistake #1 Buying the Wrong Property

Mistake #2 Not Educating Yourself on Local Laws

Mistake #3 Ignoring Property Management Services

Mistake #4 Selecting the Wrong Tenant

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Top Things To Do Before Moving Into Your Own Home

What Should You Do Before The House Movers Arrive?

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Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

Leave a Reply

Popular

Follow Us

Recent

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