Mistakes landlords make & how to avoid them
Buying a rental property and finding good tenants to rent the place sounds easy, but the reality can be anything but. Landlords can make many mistakes, which can lead to a lack of income, unhappy tenants/landlords or even worse a damaged property.
The mistakes that landlords make are most often the simplest yet overlooked the most. Below are some that we’ve seen landlords make the most and how to avoid them.
Misunderstanding the tenancy agreement
Tenancy agreements are a vital part of renting out your property. It contains important information about the tenant’s rights and your responsibilities and can have serious consequences if you fail to comply. And any additional clauses must be in line with the Residential Tenancies Act, many landlords think they can do what they like here, but they cannot contract out of the law. So make sure you fully understand it and that it includes additional clauses before you sign.
Tenant selection is one of the biggest mistakes that landlords make. Often, we hear that landlords pick the first person who shows interest without looking into their rental history. Not knowing their rental history or ringing their previous landlord to find out why they left could turn into a much bigger headache further down the line.
Out of touch with the market
Overpricing or under-pricing the rent is another common mistake made by landlords. There’s no point trying to out price the market as people won’t pay above the market rate. Rent set too high will leave the property empty and too low will leave you out of pocket.
Lack of maintenance and inspections
Not visiting the property and looking for any damage or maintenance issues that need to be fixed can add up quickly and cause more serious problems in the future, which can be costly. Not maintaining the condition of the property can also make the tenants unhappy as they expect things to be fixed promptly. This could increase turnover and also make your property more difficult to rent. A property that is not well maintained may suggest to prospective tenants that the landlord does not care about the state of their investment, or that they would be less responsive to repair requests.
How to avoid making mistakes
The best way to avoid making these errors is by using a property management company like Nice Place. We take care of everything, so you don’t have to. We have the knowledge and tools to select the right tenant. We know where the market is at and what the correct rental price is. We also plan and execute the inspections and are on call 24/7 to deal with any maintenance issues. But most importantly we understand tenancy agreements, so we know the legal responsibilities of being the landlord. So, give us a call today on 04 389 8840 to see how working with us can help you.