Hard earned money needs to be invested wisely, especially when you are investing in a property; you need to take certain precautions. Investing in property is a major decision, so what’s the point in complicating it further by buying the wrong property? Here are 5 common mistakes that people make while investing in buying a home, and how they should avoid them:
1. Not consulting experts
Most people try to save small money they need to pay as consultation fees and avoid taking professional advice while buying a property. It is better to go through a property management agency and pay a small price so that everything is in order. They will organize all the complicated paperwork and help with the registration and other formalities. Additionally, most property management agencies help find good tenants and will keep advising you on the current market trends in the property sector.
2. Failing to look after the tenant
It is not enough if you enter into an agreement with a tenant and allow him or her to move in. You need to treat your tenant well and provide the basic needs for the home. Ensure that the water supply and power supply are uninterrupted (pay your taxes promptly) only then will the tenant be happy. Remember that the tenant is going to talk about you, and it’s your reputation as a landlord that is at stake. If a good word is spread about you, there won’t be any problems getting new tenants.
3. Fixing exorbitant rent
Just because you need to pay taxes and mortgage payments it doesn’t mean that you can fix rents on the higher side. As it is the lettings market is almost saturated and one needs to be realistic while fixing rents. Fixing the price too high may not attract tenants, and keeping your property vacant for a couple of months will put you in a financial mess. Fix a fair rent, keeping in mind the long term benefits and ensure that your property never remains vacant, or at least not for more than a week.
4. Maintenance and upkeep
Do not neglect regular maintenance and upkeep of your property. Trying to save money on property maintenance is going to affect you badly. Not only is the life of the property reduced, an unkempt looking property will certainly not attract good tenants. The longer you put off maintenance tasks, the worse the property gets to look. Hence, get small repairs and maintenance tasks done on time.
5. Proper advertisement and marketing
It is not enough to own a good piece of property. You need to let people know that there is an excellent property to let, and there are many ways to do this. Apart from spreading the word through agents, you should also advertise online, in the local newspapers and on public bulletin boards. This will ensure that you get a good tenant quickly, and prevent voids that