Landlords Save Money By Avoiding These Mistakes

Landlords often make rookie mistakes. In the hope of avoiding the cost of paying for the services of property managers many choose to source and manage their own tenants. A few will succeed, but most fall into a number of common traps that let them fail.

Those traps can include:

1. Failing to screen tenants properly.

Bad tenants often target amateur DIY landlords who might not do the same rigorous vetting checks as a good property manager. "Some buy their first property and jump in without doing any credit checks,” says Frans Kruger, managing director of Rent Square Property Management. He goes on to say “We do comprehensive tenant vetting checks – including: Credit Checks, Employer checks, Tenancy Tribunal checks, Previous Landlords checks, Passport Checks, Court Fines checks, and much more. This is opposed to other property managers doing only a couple of checks."

2. Sticking to the law.

Failing to understand tenancy law gets landlords in trouble with the Tenancy Tribunal. You need to get a good working knowledge of the the Residential Tenancies Act 1986 (RTA) and to follow the letter of the law. Landlords make many mistakes such as turning up at the property unannounced, increasing the rent whenever they feel like it or a host of other mistakes. Experience teaches you what to look for, and for that you need an experienced property manager like Rent Square Property Management.

3. Failing to carry out inspections.

A rental property is a huge investment, which you’ve handed over to strangers. Too many amateur landlords don’t do regular inspections, which put both the home and their insurance in jeopardy. Inspections are time consuming, and most landlords simply skip them. But if it comes to a Tenancy Tribunal claim and you can’t show evidence of having done checks you may lose. Rent Square Property Management do all inspections on regular intervals on an app. A full report is then sent to the owner.

4. Taking it all too personally.

Property investment is a business and tenants are your clients. Landlords sometimes let their former homes to tenants and then get upset at what in reality is reasonable wear and tear, which is allowed under the RTA. Rent Square Property Management brings effective communication skills, and maintain a professional, “arms-length” relationship with your tenant, making it easier to be firm with them, and guide them through the correct procedure.

5. Letting illegal dwellings.

Many landlords can be tempted to let an illegally converted garage, basement or other building as a tenancy. It’s a big risk. Tenants know their rights and the Tenancy Tribunal can and sometimes does order landlords to repay every cent of rent to tenants who have found themselves living in unconsented structures. Landlords may also be breaching the terms of their insurance cover by letting these properties.

6. Failing to maintain the property.

Many landlords can be tempted to ignore requests from tenants for work to be done. This can both degrades the property and sour the relationship with the tenants. Doing work promptly can help keep good tenants. It also protects your investment.

Managing an investment property involves many tasks, including handling tenant enquiries, arranging maintenance, paying bills, conducting inspections, and keeping records. Even the most experienced landlord can find all this overwhelming and time-consuming.

With technology, Rent Square Property Management has streamlined systems for collecting rent, contacting tradespeople, communicating with your tenant, and conducting inspections, to help ensure nothing is missed.

Contact the team at Rent Square Property Management today and let's discuss how we give you complete peace of mind, ensuring your investment is in expert hands. Let us handle the stress while you enjoy the returns!

Email us today at info@rentsquare.co.nz