You'll have a hard time finding a rental property owner who hasn't made a few mistakes along the way. Owning rental properties is a learn-as-you-go way to earn passive investment income. Making mistakes is part of the learning process—but there are a few common mistakes that can put your income and properties at risk.
When building a real estate investment portfolio, make smart decisions and applying best practices to every property is critical for success. Whether you're a local investor or choose this area as an international investor, we're here to help you steer clear of expensive errors that can lead to property damage and income loss.
The best way to reach your long-term financial goals is to minimize mistakes is to follow insights from an expert property manager. Follow these tips to avoid common DIY mistakes for your metro Atlanta rental investment.
Mistake #1: Skipping the Screening Process
Reviewing rental applications is not a screening process! It's only the start of what should be a thorough deep dive into an applicant's background to qualify them according to your criteria.
Without applying a screening process, your metro Atlanta properties are at risk of housing a bad resident. Good renters pay the rent on time, take excellent care of your properties, and follow the lease rules. Bad renters don't pay the rent, often cause property damage, and ignore the rules.
By researching a potential resident's background, investors learn valuable information to recognize quality renters (or potentially bad residents). Make sure your screening process includes a credit check, employment and income verification, criminal history, prior rental history, and reference checks.
Mistake #2: Setting the Rent Too High (or Too Low)
The ideal rental rate for your house for rent in Metro Atlanta doesn't reveal itself through a guessing game. Without performing rental market analysis, investors risk setting the rent too high (or too low) for the market—and losing money either way.
- When the rent is too high, renters won't pay that much to live in your property. You'll experience extended vacancy times waiting for a renter who is willing to overpay to live in your rental. Every month that your property stays empty is a month that you lose money.
- When the rent is too low, you'll fill the vacancy quickly. However, you lose money every month with an underpriced property that doesn't generate enough income.
Work with a metro Atlanta property manager with the research and experience you need to set the ideal rental rate for your property!
Mistake #3: DIY Maintenance (When It's Time for a Pro)
Fixing things around your home can be a good way to save money and improve your DIY skills. However, your house for rent in Metro Atlanta needs a higher level of quality maintenance to keep it in excellent condition and remain a safe place for your residents.
Real estate investors must deliver safe housing and follow local ordinances to operate legal rental properties. When a maintenance problem calls for a repair that exceeds your handyman (or woman) skills, it's time to let a qualified contractor handle the job. Trying to fix it yourself or choosing a low-cost service provider can become an ongoing (and expensive) problem that leaves residents in unsafe conditions.
When you hire professional property management, you have a quality, licensed vendor that trust has been built with. The vendors we partner with at Compass Property Management have been with us for over 4 years. Quality maintenance services keep your rentals in excellent condition—and renters stay happy!
Mistake #4: Underestimating Expenses
The monthly mortgage payment for your house for rent in Metro Atlanta isn't the only expense to include in your operating budget. Real estate investors must also budget for ongoing costs, including:
- Landlord insurance
- Routine maintenance and repairs
- HOA fees
- Property taxes
- And more
The monthly rental rate should be high enough to cover every expense and put profit in your pocket! A property manager helps investors create an accurate monthly budget to manage cash flow and maximize ROIs.
Mistake #5: Not Hiring a Property Manager
A Metro Atlanta property manager is the best solution to common property owner mistakes. Reducing errors and minimizing risks help investors make more money and protect their long-term income.
Compass Property Management helps local and international investors benefit from the metro Atlanta market! With our local expertise and experience working with investors worldwide, we have one goal in mind: to get the best return on your investment. Rental property owners don't have to worry about dealing with the financial impacts of these common mistakes when you work with the Compass team! With our ongoing education and monitoring of local, national and global industry news, we treat your investment like it's our own. The right property manager avoids these issues to maximize your income and keep your house for rent in metro Atlanta safe.
When you're ready to leave these self-managing mistakes behind, start your free, no-obligation consultation. Download our free "Guide to Finding the Best Metro Atlanta Property Management Company!"