For new landlords purchasing a property as a rental can be exciting and terrifying at the same time. If done correctly becoming a rental property owner offers a significant potential revenue stream. However, common mistakes made by new landlords could cost them thousands of dollars which could lead to financial failure.
Having Extended Vacancies: When your property is empty you are not making money and if you are a new landlord with only one rental property that means you are most likely losing money in the form of property taxes and mortgage payments each month. Often new landlords can find themselves with empty rental properties because they either have failed to market their property well or they purchased a rental property in an area that does not have high enough rental demand.
Over rehabbing the property: Over rehabbing a property could lead landlords to over price their rental or spend money they may need in the future to fix potential issues that arise. Also, the longer you rehab a property, the longer the property takes to go on the market costing you money in lost rent.
Failing to have an effective property management system: Most new landlords do not realize the importance of having a property management system that helps keep them organized so that they can manage their rental property effectively. Keeping track of utilities, payments, important documents and using Building Management Software can save landlords time and a massive headache when issues do arise.
Becoming a rental property owner has several potential positive features if you do not make costly mistakes. While many individuals think landlords can just sit back and collect rent, managing a property is a full-time job. Whether you’re a new landlord with one or 2 properties or hundreds of units, make managing your rental property easier by using RISSOFT rental property management system.
This post is provided by RISSOFT Residential and Commercial Property Management Software, specializing in innovative and cutting-edge property management software for all 50 states. Request a demo or contact us today to receive more information.
Disclaimer: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.