Being a landlord requires a variety of skills: you have to be a mix of detail-oriented, patient, organized, resourceful, and firm when it comes to enforcing deadlines and assessing fees.
Landlords also have to
understand the rental property business—inside and out. Knowing what makes an excellent rental property, how to handle tenants, and how to operate within the laws of the Big Island serves to increase your profits. However, failing to learn and understand changing laws—or working without enough experience—can lead to mistakes.
Some mistakes can be costly: landlords need to know what they're in for when building an investment portfolio. The right property management in Waimea can help you avoid some common rental property mistakes—and keep your income on track.
1. The Wrong Tenants
Any tenant is better than not having a tenant, right?
Wrong.
It's a rookie mistake to
allow a tenant into your property without passing them through a thorough screening process. Yes, you lose money while a property sits empty. However, the wrong tenant can prove to be a bad (and more expensive) mistake to make with your investment property than letting it remain vacant!
A bad tenant in Waimea can't be
that bad, right?
Wrong again.
- Bad tenants don't pay the rent on time, if at all: You lose money chasing down late rent payments—if you're able to get it from the tenant.
- Bad tenants cause damage to your property: The security deposit might not cover the full cost of repairs after a tenant breaks something in your property.
- Bad tenants are expensive to remove from your property: The eviction process is lengthy and costly. Once a terrible tenant gets into your property, it's not easy to remove them within the law.
Cleaning up the aftermath of the
wrong tenant can cost much more than it's worth to maintain a vacant property while you find the
right tenant.
- All applicants must go through a screening process to check rental and credit history.
- They must meet your pre-determined criteria before allowing them into your property.
On top of that, your screening process should always be applied to every applicant, every time. Staying consistent with the applications process reduces bias and helps to protect you and your investments.
2. The Wrong Maintenance
Saving a buck or two on cheaper maintenance doesn't improve your bottom line long term. If Hank the Local Handyman doesn't fix the problem in your rental property right the first time, you'll pay more to have his work re-done. You'll also upset your tenants with repeat work for the same issue.
The Routine
Professional maintenance is the best way to avoid expensive repair and upkeep mistakes. With a
professional maintenance service, it's simple to schedule routine property inspections. This helps you stay up-to-date with the condition of your property throughout the year. Regular inspections also help you keep up with preventative maintenance or make repairs before small problems turn into significant (and expensive) issues.
The Emergencies
When something breaks unexpectedly,
you need maintenance help right away—without overpaying for emergency repair services. Are you sure Hank the Local Handyman can be there at 2 am on a Sunday when a pipe bursts? How much will he charge to get out of bed and stop the leak?
Make sure your properties have
professional maintenance services to be there when your tenants call in the middle of the night!
3. The Wrong Expectations
Rental properties aren't a freefall of cash that flows from the moment you buy a new property. When you choose investment properties as a way to increase your long-term wealth, be sure you
manage your expectations.
Investment properties are a great way to generate monthly income toward your retirement, but be sure you factor in the cost realities, too.
- The price of your properties
- Ongoing maintenance costs
- Fees, permits, property taxes, and insurance.
Successful investment property portfolios require patience, expertise, and strategy.
- Work with a local Waimea property manager to make a plan.
- Grow your portfolio when it makes sense to add another property.
- Re-evaluate your monthly rent price when it's time to renew a lease.
- Maintain proper financial reporting to track expenses and income.
Keep your eye on your long-term financial goals. With long-term plans, things can go wrong in the short-term. With adjustments and
the right property management partner, you'll stay on track with your wealth goals.
The Right Way to Avoid Mistakes
The best way to avoid common landlord mistakes is to hire an expert Waimea property management company. Hawaiian Dream Properties works
alongside you with our eye on
your long-term financial goals. Plus,
our property management experience means you don't have to worry about making mistakes.
We handle everything from thoroughly screening tenants to providing the best professional maintenance for all of your
investment properties on the Big Island. We understand the importance of placing the best tenants, and our process works quickly to reduce the downtime between tenants. When it comes to the care of your property, we even offer inspections twice a year to make sure your property stays in excellent condition.
You don't have to manage your expectations with our expert property management services. Hawaiian Dream Properties is ready to exceed expectations to help you grow your portfolio. Let's chat about how our services can help you increase your wealth and minimize potential missteps!
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