Being a landlord can sound pretty straightforward on paper, but the reality is that it can be quite challenging to manage an investment property alone. Experience goes a long way when it comes to being a landlord and it’s a role that you certainly get better at with time. There are a few common mistakes that new landlords tend to make; if you can avoid these you’ll be doing better than most!

Neglecting Maintenance Requirements

One sure-fire way to get yourself in hot water as a tenant is to delay or altogether ignore the requirements of the property and the needs of your tenant. There can be a tendency for us to put these kinds of things off, especially when they take time to organise and can be quite costly.
Australia has a strict set of laws concerning the responsibilities of a landlord and it’s important to conduct inspections to keep up to date with what’s required. Just make sure that you don’t show up unannounced as this may have legal implications.

Underestimating Maintenance Costs

You’re obviously going to want to plan ahead and consider your potential profits. One common mistake is to either forget to account for maintenance costs completely or underestimate how expensive they will be. Obviously, some maintenance needs will be difficult or even impossible to predict. But in some cases where old appliances and materials are still in use, you should be factoring in a potential additional cost down the line. This cost will be a factor that you consider when deciding on how much to charge your tenants in rent.

Failing to Properly Screen Tenants

We’ve discussed on this blog how important it is to screen tenants and some of the signs and red flags you should be looking out for. Who you choose to let live on your property can have a big impact on not only your experience of being a landlord but also your profits. You might find that you are eager to find a tenant and start earning income as soon as possible, but taking your time and finding the right person can save you a lot of stress down the line. Do your homework, ask the right kinds of questions and make an informed decision as possible.

Not Having Suitable Insurance

Getting the right landlord insurance policy for your needs is very important. A common mistake is for inexperienced landlords to assume that regular home insurance is a suitable substitute for landlord insurance. This is simply not the case, as landlord insurance generally includes public liability cover should things get messy with the tenant. Other additional policy aspects of landlord insurance include income protection and contents insurance. When it comes to insurance, it’s always wise to do your research and sit down with an expert to make sure you understand your policy and what it covers you for. This can help you make an informed decision.

These mistakes usually come down to a lack of preparation and organisation. But if you’re well researched and treat being a landlord as an occupation rather than a hobby, you’re much more likely to succeed quickly.