Even if you’re a seasoned pro who believes you’ve seen it all as a real estate investor, you’re still going to make some mistakes. But, if you’re willing to learn from the blunders of others, you can avoid making the same ones. When it comes to buying, leasing, managing, or maintaining an investment property, there are many common mistakes made by both novice and seasoned investors.
Learn the 7 most common pitfalls of investing and how to avoid them.
Find a Property Manager in Buckhead First
While most landlords recognize the importance of property management, some landlords delay hiring a manager until it is too late. Working with a management firm before investing can provide helpful information about the property’s potential rental income. If you hire a property manager, they can tell you how much money you can expect to make from rent, how long the vacancy duration might be, what kinds of tenants would be interested in your residence, and if any major repairs are needed to get the house rent ready.
Do not purchase a home that needs extensive repairs
Occasionally, financiers will purchase a rental property without fully considering the amount of work required to bring it up to par. This is a common blunder because houses in need of repair often sell for a lower price, making it tempting to offer such a property. You should search for properties that need minimal work to be rented out.
Focus on Buckhead’s Rent Prices
Buckhead has high rents. You should earn a lot of money every month from rent. Avoid the unnecessary hassle by not asking too much for your home.
Research the marketplace
Determine the market rent for houses like yours in the area. A profitable rental price while still being competitive will attract quality tenants. Investors can make a costly error by charging too much for a rental property. That causes openings to appear.
Respect existing regulations aimed at ensuring equal housing opportunity
When it comes to advertising and vetting candidates, blunders can be disastrous. Under the law, you must provide the same fair treatment to all applicants and tenants. You should be careful with the terminology you use in the rental listing and implement an automated screening procedure with a defined set of rental criteria.
Don’t bother with that Home Warranty
Purchasing a home warranty is yet another wrong move. For the house you’re currently occupying, this could be a fantastic deal. In the case of rental properties, home warranties will only lead to service delays or even catastrophic maintenance blunders. Tenants who are currently renting from you may leave if they become frustrated with the pace at which maintenance requests are being answered.
Hire reliable and insured repair companies
Never try to save money by skimping on repairs to your property. Don’t do it yourself, and don’t give jobs to friends or family who are willing to work for little pay. Tenants should never be trusted to fix anything. These scenarios have the potential for significant danger and costly errors that may be difficult to rectify. Find vendors who meet these criteria while remaining affordable.
Profit from Tax Breaks
It’s foolish to ignore potential tax savings. You should know the tax write-offs available for depreciation, interest expense, upkeep, professional property management expenses, and more. Consult an accountant or CPA for assistance.
If you’re looking to invest in Buckhead rental properties, these are some of the best ways to ensure you don’t make the most typical blunders. Reach out to Tameka Manns if you’re interested in learning more. If you’re looking to invest in real estate, you can rely on us to help you manage the properties.