Being a new landlord can be challenging and the added pressure of finding a suitable tenant in time to pay your mortgage doesn’t help either. Here are some of the most common mistakes landlords make and know how you can prevent them.
We get it, you’ve just started your property investing venture and now you need the ideal tenant to fill it but you also don’t want to rush but you also have a mortgage to pay. It turns out being a landlord is not a walk in the park as those ‘experts’ claimed it to be. The truth is all that stress added with time constraints to get a payment can make you feel under pressure to find a tenant.
Accepting an offer from the wrong tenant
It is so tempting to accept the first offer from a tenant that shows interest, however, there are a multitude of factors to consider when choosing someone to occupy your property. At this point, you should focus on the individual or family and not when you want your first payment. You would be better off taking your time to find the right tenant than rush and then end up housing someone that doesn’t pay on time or oblige by your rules. Before you know it, you are behind on your mortgage payments and the property is in need of major repairs that would take months to recover. If only you had a better screening process.
Choosing the wrong agency to let out your property
Picture this, you have decided on a lettings agency to match your property with a tenant and they managed to house someone in a matter of days. You’ve even managed to bag 3 months rent in advance so you feel like your walking on air! That was so quick and easy, too good to be true. That’s probably because it is too good to be true. Suddenly your agency of choice just sent you an invoice for some fee you’ve never heard of, but you are sure you read the contract and asked all the right questions, so where did this fee even come from? This mistake is the easiest to make as landlords generally go with the first agent they find that meets their requirements from a financial angle, and by that, I mean finding an agent with low fees and seem too good to be true. Investing in properties is a high risk high reward investment which forces you to look at the bigger picture. It is more than just a numbers game, don’t forget that your agent is responsible for marketing your property and finding a tenant that will occupy your property. It is so important for landlords to build a strong business relationship with their lettings agent or negotiator to ensure excellent service and it keeps you on the agent’s mind. A result of building a positive rapport with agents will increase the chances of your property being mentioned first when prospective tenants enquire for a property with your agent or negotiator. At Hyde and Rowe, we take pride in getting to know our landlords and tenants to get the right people living in the best properties for them.
Not outsourcing maintenance work
Maintenance work is easily one of the biggest factors that turn people off when they consider investing in properties and that’s totally understandable because the work can be quite strenuous and in some cases… a bit grubby. Luckily for you, you don’t have to! Ever seen those boards that say ‘Let and Managed’ and wondered what that means? The simplified answer to that would be: The landlord of that property is smart. But that sounds a bit vague, so here’s the full answer: Hyde & Rowe offers a let and managed service for landlords where we market your properties and manage it once it is let out. Our team will then be the first point of contact when maintenance work is required and we even collect and chase up rent payments, while the landlord gets to sunbathe on the beach far away, feeling relaxed with the knowledge that they are literally making money while they sleep… or in this case, sunbathe.
Not being ready
I know I keep repeating this line, but it really needs to be emphasised; Property investing is a high-risk high reward investment. At Hyde & Rowe we strive on educating our landlords on how to be vigilant when letting out their property. Our CEO Michelle Mcpherson runs mentorship programs, advisory sessions and seminars for property investors covering how to invest in properties the right way. Even if you’ve only been dabbling with the idea of becoming a landlord but you’re afraid to take that dive, you can book an appointment with Michelle and you can learn more about the risks involved, how to be prepared and most importantly she will walk through exactly what you can do to maximise your income, so stay one step ahead of other landlords.
Want to learn more?
Why not sign up to our mailing list to be the first to know when we’re holding our next Landlord Seminar. If you can’t wait, then get in touch with us on [email protected] or call us on 020 8686 1799 and ask about our various landlord and property investment mentorship and advisory programs.