How property management can make or break your career as a property investor in the Perth market.
If you are a new landlord, there are eight mistakes that will derail your career as a property investor. Let’s take a look at them.
Not Treating it Like a Business
If you don’t treat investing seriously, expect to make mistakes and lose money. Treating your investing like a business means putting together a plan that you refine over time and execute with the help of a professional team.
Getting Too Close to Your Tenants
You should always be cordial and professional, but it is simply not good business to have a personal relationship with your tenants. They will expect you to be “understanding” when they don’t have rent money for three months.
Emotional Attachment to Properties
Remember: it’s a property. It’s not your home. You might not want to live in a property, but it could be a golden investment opportunity. Buy with your head, not your heart.
Failure to Maintain Property Promptly
When something goes wrong, fix it ASAP. Keep your property in top shape. Today’s rental property with “a few maintenance issues” can quickly become far bigger nightmares that escalate in cost.
Failure to Depreciate
Always put any investment property on a depreciation schedule. This often makes a big difference to your weekly cash flow- the lifeblood of any investor. Whatever the case, every dollar adds up over twenty years.
Failure to Increase Rents on a Regular Basis
Always keep an eye on rents and make sure that you are in line with the rest of the market. Don’t leave money on the table. A good property manager will substantiate market values with real rental data, so you can make informed decisions together.
Failure to Focus on Growth
As you amass more properties, you will amass more equity and have more money to borrow to expand your portfolio. Always remember that you are in it for capital growth.
Failure to Hire Professional Property Management
This is the worst mistake of all and can be the difference between success and failure.
Call 1300 472 427 today.
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