Success as a Chesapeake VA property investor is a combination of applying Rent Estate™ best practices and avoiding expensive mistakes. Sometimes, we learn more from mistakes than from success—but losing money in the process can mean it takes longer to reach your financial goals.
If you've made an investing mistake (or two), you're not alone! You won't find many successful investors who haven't made a mistake (or several) when learning how to build a profitable rental property business. As professional property management Chesapeake VA investors can trust, we often help DIY investors recover from mistakes—and get them back on track to investment success! We've seen a lot, and we think we can help you watch out for some of the biggest pitfalls that can happen with real estate investing.
What kind of mistakes should investors try to avoid? Here are some of the most common property owner mistakes—and how to avoid them!
Foreword: While we are experts in Chesapeake property management, this blog is not intended to replace in-person legal counsel. If you need live support, get in touch with the Rent Estate™ Advisors at Renters Warehouse!
Failing to Thoroughly Screen Renters
It's easy to make this mistake—but it also has an easy solution: always (thoroughly) screen your potential renters!
One of the most expensive mistakes investors make is placing a bad renter in a property. Whether it feels like a hassle to use a thorough screening process or the renter seems like a good choice based on the application, allowing a renter into your property without a background check can become an expensive problem.
We're not talking about a quick online screening service: your rental property is a significant asset! Protect it by applying a thorough screening process that reviews everything from credit history to income verification, prior rental history, references, and criminal history.
A bad renter can lead to lost rental income and expensive property damage. Only place quality renters in your properties!
Setting the Wrong Rental Rate
Yes, there is such a thing as a "wrong" rental rate! If you didn't use rental market research to determine the ideal "bullseye" rental price for your property, that price might not be right.
It's tempting to have an amount in mind when it's time to list your rental property and find new residents. However, when investors set the wrong rental rate, they lose money. If the price is:
- Too low: You aren't making enough money on your property—every month
- Too high: You won't find renters to pay that price to live in your property—month after month.
Don't risk your income! Use rental market analysis to find the best competitive rental rate for your Chesapeake VA property.
Doing Maintenance Yourself
Do you DIY property maintenance? That could be a mistake.
- The city may require a licensed contractor to perform significant rental property repairs and maintenance.
- You'll also need the appropriate permits before work begins.
- If you're doing your own electrical work or subfloor plumbing, your property could be out of compliance—and unsafe for residents.
You might be an excellent handyman (or woman). Still, when running a rental property business, DIY maintenance could be an expensive mistake—even if you take on these projects in an attempt to save money.
- Hiring a professional means your property gets a quality repair and follow building and city codes.
- You'll save money in the long run when you don't have to fix the same problem over and over again or pay fines for a property that has code violations.
Not Managing Expectations
If you expected to buy a house, find someone to live there, then sit back and collect rent checks, you might need to adjust your expectations! Your Chesapeake VA rental property isn't an automatic money-making machine without hard work and expert management. It also requires continual investment to keep the property in excellent condition! Property investors must:
- Plan and budget for ongoing maintenance
- Understand the fees and taxes associated with a rental property business
- Factor in the ideal rental rate compared to common expenses when estimating a property's ROI.
You can make significant progress toward your financial goals as a real estate investor—but don't get too far ahead of reality. Manage your expectations while building your success!
Not Hiring a Property Manager
When investors realize that they don't have to do any of these things on their own, it's the best way to avoid common rental property mistakes! Hiring expert property management, Chesapeake VA investors, means you have a skilled professional to:
- Help you budget expenses and income
- Perform all maintenance services
- Set the best rental price
- Screen renters.
Avoid Mistakes With the Best Property Management Partner!
Not all property managers offer the best quality services! Investors will be more successful at avoiding mistakes and meeting their financial goals when choosing only the best property management Chesapeake VA has to offer!
Renters Warehouse Hampton Roads works hard to keep investors from suffering through the aftermath of rental property mistakes. We'll help you avoid the pitfalls and make the best decisions for your properties and goals while providing the best property management services in Chesapeake, VA!
This means we can even help you learn more about what to look for in the best property manager. Download our free resource: Guide to Finding the Best Property Manager in Hampton Roads, Virginia, to get started!