Owning a rental property is an investment opportunity with plenty of potential. Many rental property owners also find ample opportunities for mistakes!
If you're struggling with the fallout of mistakes as a real estate investor, you're not alone. Without the right experience, it's easy to miss critical steps, make bad decisions, and lose money on an Atlanta rental property. Being a real estate investor isn't hard. It's one of the best ways to build more long-term wealth! However, without the right tips and tricks and the knowledge to avoid mistakes, investors can lose rental income and face significant fines.
What are some of the most common DIY mistakes that rental property owners make? Here's what you need to avoid for more success with your real estate investments in Atlanta!
Lax Screening Practices
If you're dealing with lengthy vacancy times, it's tempting to allow a renter that "seems okay" to move into your property. Weeks (or months) without rental income can make any investor desperate for anyone to move in and pay the rent.
However, without applying a thorough screening process to every potential renter, Atlanta investors risk placing bad residents in their properties. As challenging as it is to cover the expenses of a vacant property, dealing with difficult renters who don't pay the rent and cause property damage is a worse situation.
Lax screening practices are a costly mistake! Screen every applicant to ensure quality residents every time you need new renters.
Picking a Rental Rate (Without Research)
Picking a rental rate to match the rental house next door isn't the best strategy to maximize revenue. While rates for nearby rental homes can help guide you to the ideal rate for your Atlanta rental property, investors need more research before setting the ideal rate.
Instead of choosing a monthly rent amount that you have in mind or simply copying a rate that you find for other rentals in the neighborhood, work with a property manager to apply experience and rental market analysis. We help investors understand market conditions, renter demands, the going rate for similar properties (even if they aren't in the neighborhood), and set an ideal rate to maximize ROIs and long-term success.
Fixing Things That a Pro Should Handle
You might be handy around your house with a few tools and a Google search. However, maintenance that's good enough for your home isn't often good enough to safely maintain rental properties and keep renters happy.
It can be an expensive mistake to attempt repairs that a professional should handle. Investors don't need to overspend on costly contractors to experience quality maintenance and repairs. However, trying to save money on DIY fixes or the lowest-cost plumber can lead to safety issues and more costly repairs down the road.
Your Atlanta rental property, residents—and your bottom line—benefit from professional maintenance services. A property manager delivers expert maintenance services while saving time and money for investors. We vet every contractor before they enter a residence to perform work, and we provide competitive pricing for repairs and maintenance. When renters enjoy a well-maintained home and prompt responses to maintenance emergencies, they're more likely to renew (and boost your ROIs).
Aiming Too High (or Too Low)
Real estate investors much manage expectations for income. Investors also need an accurate understanding of estimated ongoing expenses to own and operate an Atlanta rental property.
It can be challenging to predict potential income and expenses without the right experience and insights. Balancing cash flow while maintaining excellent ROIs isn't easy!
A property manager helps real estate investors understand that:
- Raising the rent at the wrong time (and too high) doesn't always lead to more profit.
- Every rental property comes with monthly and annual costs, like property taxes
- Not having the right insurance can leave properties (and rental income) without critical protection
- Overestimating income based on inaccurate or unrealistic data can lead to income loss and disappointment.
Investors must have realistic expectations of a rental property's performance. They also need to understand how certain decisions can impact income and long-term success. A property management company helps investors make smart decisions and meet their long-term financial goals!
Hire a Property Manager in Atlanta to Avoid Common Mistakes
Whether it's adjusting the rent (smartly) for your Atlanta rental property, applying smart upgrades, or adding more rentals to your portfolio, choose a property manager that guides you to the long-term goals you have in mind—while avoiding mistakes along the way!
Renters Warehouse Atlanta helps real estate investors maximize ROIs by applying our experience and high-quality services to every property. Don't make the mistake of choosing rentals in Atlanta without a property manager to guide you to success! Contact us to learn how we can help.
Find everything you need in the right property manager! Download your free copy of “The Guide to Finding the Best Atlanta Property Management Company."