Under-renting the property and failing to keep pace with the increasing market.
When interest rates, strata levies and land tax rise, the landlord is left to carry the extra burden. It is only fair and sensible to ensure that the income the property generates is at the market rate and not significantly below.
Failing to spend money on minor maintenance.
When it comes to repairs, a little expenditure today can save a lot tomorrow. Good quality properties attract good quality tenants.
Not inspecting the property often enough to witness the condition of the property.
Investment properties usually hold a great deal of the landlord’s net worth. It can be complacent to accept a condition report from the agent every 12 months as to the true condition of the property. It is always best to check it out for yourself – in person if possible.
Not having enough respect for good paying and reliable tenants. A stable tenant that looks after the property as if it were their own and who pays on time is far more valuable than a sloppy non-payer.
Assuming the property manager is paying close attention to the property. Many landlords are shocked and disappointed to learn that the agent has not inspected the property or maintained its condition for years. What was a desirable renovated residence is now a bashed up shack. Why? In most cases the property manager is managing too many properties.
Getting emotional about the property and overlooking the fact that it is an investment. An investment property should be treated as such. Some landlords treat it as though someone else is living in their home and become too emotional about the property.
Overlooking or ignoring issues and requests the tenants have. A happy tenant is more likely to be a good payer. If the landlord does not look after the property, why should the tenant? Both the landlord and the tenant have a mutual interest in maintaining the standard of the property.
Failing to check the prospective tenants references and history. People don’t become non-payers overnight, they usually have a history. In the rush to get someone into the property, the prospective tenants references and history can be overlooked. It is better to have a vacant property than an unreliable tenant that abuses the property.