The most successful property investors have a number of tools in their landlord kit-bags.

Questions Previous Landlord Maryland TenantOne of the most important of them all is using professional property managers to do the heavy lifting for them.

That’s because, to create significant wealth, investors not only need to be strategic with their property purchases, they also need to hold for the long-term.

This involves not making silly mistakes that could have easily been avoided with the right guidance and education.

Here are 15 common mistakes that can ruin an investor’s wealth creation plan.

1. Not considering vacancy rates

Ignoring vacancy rates is always a bad idea, whether you are buying or already owning a property in a particular location.

High vacancy rates mean there is too much supply, which will drag down rents as well as yields – sometimes for years.

2. Not understanding demographics

One of the fundamentals that investors must understand before buying in a specific area is the demographics of the tenants (as well as the owner-occupiers) in the area.

These means don’t buy a one-bedroom unit in a suburb that is popular with families who want to rent three-bedroom houses.

3. Not budgeting for maintenance

You must always treat your investment properties and your tenants with respect.

That means always budgeting for maintenance because your investment is actually someone’s home.

4. Not listening to expert advice Business Team Meeting Present. Photo Professional Investor Worki

Investors who engage property managers for their portfolios understand the importance of working with professionals.

However, when some investors choose to ignore that same expert’s advice, you have to wonder why they bothered at all?

Remember…if you’re the smartest person in your team, you’re in trouble.

5. Not knowing the market rent

Whether your investment property is currently tenanted or vacant, not knowing the market rent will likely cause you cash flow problems in the long run.

That’s because advertising it for a sky-high rent will see it sit empty and trying to increase the rent when the market is soft may motivate your tenants to move somewhere more affordable.

6. Not having fixed-term leases

landlord rights and responsibilitiesOne of the myriad advantages of using property managers is the regular renewal of fixed-term leases.

Having a tenancy agreement in place guarantees your income for the next six or 12 months, while periodic leases mean the tenants can shift out with very little notice.

A good property manager will also ensure that your lease doesn’t expire at a time when it’s difficult to relet your property.

For example, at Metropole Property Management we will often get tenants to sign a 13-month lease so their lease doesn’t expire over the Christmas holiday period.

7. Not using property managers

Worse than not listening to the advice or property managers is not using them at all.

Novice landlords think they are saving money by managing their property themselves.

In reality, it is likely to cost them far more in the long run because of their inexperience.

8. Not keeping your distance from tenants

3 Helping Your TenantPrivate landlords are also prone to treating their tenants as friends.

Of course, you should always treat tenants with respect, but it’s vital that the relationship is professional.

At the end of the day, it should be a business relationship – with a property manager the intermediary.

9. Not having insurance

Similar to thinking that property management is not worth the expense, some landlords believe that insurance is not needed either.




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