Taking on rental property can be a rewarding investment if done the right way. However, diving into the challenge before fully understanding what you’re getting into can result in heavy and unnecessary costs.
Renting out a property doesn’t have to be difficult but avoiding common mistakes is key. Below are some of the most frequent pitfalls landlords face, and how to avoid them.
Rushing Tenant Checks
As tempting as it may be to get occupants in as soon as possible, rushing the tenant screening process can lead to serious problems down the line. A tenant who isn’t financially stable or reliable can result in late payments, property damage, or even eviction proceedings.
Always request that potential tenants complete a full rental application form. Take the time to carefully review their credit history, employment details, and previous rental references. A little patience upfront can save you significant stress and financial loss later.
Assuming You Will Always Have a Paying Tenant
One of the biggest mistakes landlords make is assuming that rental income will be continuous. There is no guarantee that your property will always be occupied.
Before purchasing or renting out a property, conduct a thorough analysis of your financial capacity. Ask yourself: if the property stands empty for a few months, would you still be able to cover bond repayments, rates, levies, and insurance?
If the answer is no, the financial risk may outweigh the potential reward.
Not Budgeting for Maintenance
Maintenance is an unavoidable part of owning rental property, yet many landlords fail to budget for it properly.
To keep tenants satisfied and protect the value of your investment, your property needs to be well maintained. Ongoing maintenance costs should be factored into the monthly rental amount.
Without proper budgeting, landlords often find themselves choosing between unhappy tenants or covering repair costs out of their own pocket, both of which can be avoided with better planning.
Relying on a Verbal Agreement
For your own legal protection, a written and signed lease agreement is essential. Relying on a verbal agreement or a simple handshake is extremely risky.
If disputes arise and there is no binding lease in place, you may have little to no legal standing should the matter escalate. A comprehensive written agreement protects both landlord and tenant, clearly outlining responsibilities, payment terms, and notice periods.
Final Thoughts
Rental property can be a powerful investment when managed correctly, but the practical responsibilities should not be underestimated. Avoiding these common mistakes can help protect your income, your property, and your peace of mind.
If you’re ready to invest in rental property but aren’t ready for the day to day responsibility, we can take care of it for you ensuring your property is professionally managed while you enjoy the benefits without the stress. For more information, please contact our rental manager, Sunell Afrika https://www.saproperty.com/agents/sunell-afrika/59694/
