5 Profit Killing Mistakes Highland Beach Landlords Make With Their Rental Property

5 profit killing mistakes

As a boutique, upscale Highland Beach Real Estate brokerage with extensive experience with investor clientele, we've seen all manner of profit and loss from landlords we've sold homes to and advised in the past. To narrow our list of ill-advised landlord mistakes to five was difficult, as there are many examples of poor choices cutting into profits and depreciating the quality of the rental property. For current and future rental owners, we're here to get in front of what could be your biggest mistake yet. These five landlord mistakes shown below are the most common and expected from landlords just about anywhere, and a cautionary tale to anyone looking to cut corners and save now. It may cost you big later!

neglecting essential appliance maintenance

Neglecting Essential Maintenance On Major Appliances

The inevitable breakdown of the washer, dryer, or other major appliance is the bane of a landlord's existence. Save for major disasters like flooding, fire, or a full HVAC overhaul, the repair or replacement of significant appliances can wipe out profits for a month or more. The extension of life on these pieces of equipment is one of the most important roles local handymen play when servicing rental homes, but their upkeep is often ignored until a critical mass is reached and replacement is the only option. Look at the major appliances as you would your vehicle. Without routine oil changes that may be uncomfortable and costly, you're just postponing a much more significant problem down the line.

waiting too long to list

Waiting Too Long To List & Rent Your Unit

Timing the market is such a vastly made mistake that we had to include it in our top 5. Often rental landlords will withhold their property from the market while waiting for the proper timing, using national prices and market forces as their basis for the decision. Yes, you may benefit from a slight change allowing an increase in your asking price, but if you waited three months, those months of rent will almost always far exceed whatever you hoped to accomplish by waiting.

poorly maintained paper trail

A Poorly Maintained Paper Trail

You've acquired the perfect rental property. You remodeled the kitchen with a beautiful backsplash and new stainless appliances, and it's on the market with a lot of hits. But... your poor record-keeping and shoddy accounting have held up the process and now your prospect and their agent may back out altogether. Even with the purest intentions and nothing to hide, the unpreparedness at such a crucial stage will give pause to even the most trusting of renters.

avoiding moving inspections

Avoiding Move-In And Move-Out Inspections

Your Highland Beach condo may be covered with insurance and furnished with the latest and greatest smart home tech, but the cost-cutting measure of avoiding, or conducting your home inspections may cost you big time in the long run. Your home may experience depreciation that can be easily remedied with a quick fix, or you may lose part of the security deposit you're entitled to after refurnishing the funds and noticing something later.

poor location for rental

Choosing A Poor Location

For Highland Beach residents, this may be redundant. This tiny beachfront oasis has no traffic lights, almost no crime, and a very healthy municipal sector. However, this blog is about general advice to rental owners based on our experiences, and not a commentary on the Highland Beach Market. When it comes to renting versus owning, crime in particular stands out. This is in part due to the sociological consequences of homeownership, and the added desire to protect what is truly, and not temporarily theirs. This is not to say that all rental-forward housing corridors are troublesome, but with rentals, the location almost matters even more than to homeowners. For instance, your renter may desire certain features in your condo but ultimately are choosing that community due to its proximity to something important to them - like their workplace, cultural venues, family members, or university.

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