Rental property ownership isn’t easy. From after-hour calls to incorrect pricing, I’m going over the biggest mistakes landlords make and how to dodge them.
Are you making these common mistakes as a rental property owner? Over the years, I’ve noticed a few mistakes that keep popping up among owners. These mistakes often come from underestimating the stress of managing rentals, selling too quickly, or just not knowing the right way to handle pricing and tenants. So, I’m here to share what I’ve seen and what I recommend to avoid these pitfalls.
1. Underestimating stress. One of the biggest surprises for new rental owners is just how stressful it can be. You might face after-hours calls, broken windows, or a variety of unexpected issues. For me, the key is to treat the property as a business rather than something personal—it’s an investment, not your office or old home.
If the stress ever feels like too much, bringing in a property management company can help, and having insurance and solid systems in place ensures the property runs smoothly without weighing on you.
2. Selling too quickly. I firmly believe that holding onto your properties long-term is usually the smartest move. Every time you sell, you’re paying fees such as realtor commissions, title company costs, and repairs, which can easily add up to 10% or more. That’s a significant hit if you’re selling every few years. My advice: don’t rush to sell. Let your property sit and grow in value. Long-term holding generally pays off more than trying to flip too quickly.
"Get your rental pricing, screening, and legal understanding in order."
3. Pricing and screening mistakes. Another issue I see is owners pricing their homes too low because they’re nervous or want to “give someone a deal.” When that happens, screening can get sloppy, and tenants might not be properly vetted. On top of that, not knowing the relevant laws can lead to headaches down the line. Making sure your pricing, tenant screening, and legal knowledge are solid helps protect your investment and keeps things running smoothly.
If I could sum it up, here’s what I would tell anyone thinking about or already owning rental properties: treat your property as an investment, not a personal space; hold onto it long-term whenever possible; and get your pricing, screening, and legal understanding in order. If the stress feels too high, don’t hesitate to get help from a property management company.
Owning rental homes can be a great investment, but only if you handle it the right way. By avoiding these common mistakes, you’ll have a smoother experience and more success over the long haul. If you need a helping hand, just reach out to me at (210) 802-9959 or send an email to info@peaceofmind.co. You don’t have to manage everything alone.