By Jerry Mooney
Are your property investments causing you more trouble than they are worth? If so, there is a good chance you are doing something wrong. While investing in property is still a great way to invest in your future, a lot of people get it wrong. In today’s guide, we’re going to reveal some of the most common reasons why some property investors fail when they are just starting out. Take a look and see if any of these suggestions ring any bells.
You don’t understand the basics
Property investment is not an activity for people who don’t know what they are doing. So many people fail because they invest their money without learning the basics. There are opportunities to lose money at almost every stage of buying and renting out property. The key to avoiding these issues is to educate yourself and avoid the same traps.
You don’t maintain your property
There is a delicate balance to achieve when it comes to renting out your property and ensuring you are keeping its value. But one thing is for certain, if you aren’t maintaining your property, you can bet your tenants are following suit. In fact, one of the biggest complaints that tenants have about their landlords is they don’t pay enough attention to maintenance. Failure to do so not only encourages residents to move on, but it can also reduce the market value of your property.
You bug your tenants
Regular maintenance and checks are one thing. But invading your tenant’s privacy is another entirely. While you will want to ensure your property investment remains in great shape, you also have to give your tenants a lot of space. You have to give them 24 hours notice at least, by law, before entering the property. But unless there is an unusual reason for doing this, we would recommend giving as much notice as possible.
You aren't playing the long game
It is possible to make some excellent gains on buying a house, fixing it up, and selling it on fast. But in the vast majority of cases, you are better off playing the long game. According to property investors Flambard Williams, the average house price doubles every ten years. If this doesn't make the long-term approach more compelling for you, then we don't know what will!
You are only investing in one property
The trouble with investing in a single property is that you are putting all your eggs in one basket. Tenant vacancies happen and can wallop your pocket if they arrive unexpectedly. You should consider investing in more properties as soon as possible so that your investment has some balance. Doing so will enable you to take any unexpected hits a lot easier.
You rip people off
Finally, you will soon pick up a name for yourself if you overcharge tenants. If you are expecting your tenancies to pay over the odds, you will need an excellent reason to do so. Charge too much, and you will soon find that people ship out, you get a bad rep, and will find the property a lot harder to fill.
