Success as a real estate investor often comes after making (and learning from) plenty of mistakes. While it can look like a cost-effective move to manage a rental property on your own, landlords can lose money on costly mistakes without the right professional insights.
From skipping seasonal maintenance to overlooking tenant screening, rental property owners don't have to deal with the painful consequences of uninformed decisions. Check out these common mistakes you should avoid, and learn what you should do instead with insights from an expert Atlanta property management company!
Choosing DIY Maintenance Over Professional Maintenance and Property Management
Performing unqualified maintenance is almost a guaranteed way to lose money on your Atlanta investments. We understand that watching a Youtube tutorial and getting the parts and tools you need from the hardware store can seem like you're saving money over hiring a professional plumber to fix that broken toilet. However, when you consider the value of your time, multiple trips to the store, and the quality of the repair, you've lost time and money on a repair that should have been handled by a professional.
Your single-family rental is a valuable asset! When investors choose professional property management services, they benefit from a network of quality contractors to handle every maintenance issue-often at a lower cost for the repair. Plus, expert repairs deliver safe homes for your tenants and help rental owners avoid liabilities. It's time to break the DIY habit and let experts handle every maintenance task for your rentals (including those 3 am calls)!
Ignoring Tenant Screening Advice from a Property Management Company
As expert property managers, our advice is to always screen every applicant before allowing anyone to move into your Atlanta rental! It might seem faster to pick a 'good' renter based on only reviewing applications when you need to fill a vacancy. However, you may not realize that a bad renter can cause any number of expensive problems, including property damage, never paying the rent, or suing you for an injury in your property.
From professional tenants who never intend to be good residents to residents who start out fine, then lapse into late rental payments (or not paying at all), a thorough background check can highlight red flags that indicate an applicant's potential for becoming a bad tenant. If you're not sure how to run credit checks, employment verifications, and review prior rental history, a good property management company can do it for you. Your property manager can also handle evictions and court proceedings if you're already dealing with a bad resident in a rental.
Setting the Monthly Rent Amount Too High (or Too Low)
What's the best monthly rent amount for your property? Rent collection is a critical aspect of generating income, but the right rental rate is critical to maximizing returns (even when tenants deliver rent payments on time). When the rent is too high, property owners struggle to find residents willing to overpay for a rental home. When the rent is too low, rental owners lose money every month on single-family, multi-family, and even vacation rental properties.
The best property management companies use rental market research to set the ideal monthly rent. If you're not sure how the rent price compares to similar real estate investment properties, partner with an Atlanta property manager to apply expert analysis and maximize returns on your rental!
Do-it-yourself Landlords with Vacation Rentals
DIY landlords with vacation rentals have become a popular trend in the hospitality industry. With the advent of online platforms and rental marketplaces, homeowners now have the opportunity to transform their properties into lucrative vacation destinations. These entrepreneurial individuals take on the role of both property owners and managers, handling everything from advertising and booking to guest communication and maintenance. By opting for the do-it-yourself approach, these landlords can have greater control over their vacation rentals, including setting their own rental rates, implementing unique design concepts, and tailoring the guest experience to their liking. While it requires a significant investment of time and effort, many do-it-yourself landlords find it rewarding to create personalized spaces that offer memorable experiences for their guests while generating additional income. Refin has created an incredible article with tips from experts. Learn more: 18 Vacation Rental Management Tips from Experts | Redfin.
Aiming Toward Unrealistic Expectations
As a property owner, it's good to build an investment strategy based on long-term goals. However, if your goals are based on unrealistic expectations for rental properties, it's possible to mismanage rentals and become disappointed by your returns.
Investing in real estate is an excellent way to build long-term income and wealth-but it doesn't happen overnight. With an expert strategy for property inspections, maintenance, finding and retaining quality renters, and being an excellent landlord, investors can build consistent cash flow through residential rental properties.
Success as a rental property owner requires patience and the right expertise. Choose the right property managers in Atlanta to build a successful strategy for long-term success and manage expectations accordingly!
Make Mistakes a Thing of the Past With an Atlanta Property Manager
An Atlanta property management company is the best way to avoid mistakes that can lead to an expensive recovery or delayed goals. With the right property managers, investors have peace of mind that their rentals are well cared for, residents are high quality, and the rent will cover expenses and maximize returns! If you're ready to make mistakes a thing of the past, let Revolution Rental Management, formerly known as GTL Real Estate, help. Our property management experts help property owners overcome mistakes and minimize them for better success!