5 Pitfalls of Rental Property Investing (And How to Overcome Them)

Every rental property investor’s journey is going to be unique. And it means there are certainly going to be some corners you can’t see around that may lead to a few mistakes. But there are some fairly common rental property investing pitfalls that many new real estate owners fail to recognize. Today, we’re highlighting those common mistakes so you know exactly what not to do – and ultimately, you can achieve portfolio growth and revenue success quicker by dodging these potential setbacks.

1. Cutting Corners (Anywhere)

It may seem like every process involved with owning rental property is tedious. It’s time-consuming to craft marketing strategies, vet applicants, schedule maintenance, and balance the books. And you will be inundated with “magic wand” suggestions that promise “faster,” “quicker,” and “easier” results. But beware. Any piece of advice that endorses cutting corners is going to be problematic for you. Don’t be tempted to overlook scheduling property maintenance. Don’t forgo calling an applicant’s references because you need tenants right away. And don’t assume that a few online listings will net loads of renter candidates. You simply have to be diligent and DO THE WORK to make it work. If anything feels like it’s skipping a step or cutting a corner, don’t do it. You’ll pay for it – big time – in the long run.

2. Avoiding Technology

Now, having warned you against cutting corners, don’t take that to mean that there aren’t innovative solutions to streamline how you manage those tedious processes. And it would be a cash-wasting mistake NOT to explore software, gadgets, and technology, especially if it can save you actual time and money – without cutting corners. There are better ways to set up call center resources to field renter repair calls, for example. There are efficient rental property management software programs that notify tenants about rent due, help you track your properties, and aid in monitoring investments. Keyless key management, virtual tenant tours, and app-based scheduling tools are all great assets in your rental property management toolbox.

3. Impulse Buying and Selling of Rental Property

If you fail to plan, as the old saying goes, you plan to fail. And this absolutely applies to rental property portfolio management. Don’t be impulsive about buying new properties or selling existing properties without conducting thorough research. Create benchmarks and guidelines for yourself in terms of portfolio goals, cash flow, and affordability. Consider marketability and ROI by crunching the numbers and estimating worst-case scenarios. Don’t hastily jump into any real estate transactions without thoroughly doing your homework every time.

4. Getting Involved Emotionally

Remember, your rental property is a business. And whether it’s passive income for you, a retirement nest egg generator, or a full-time job, it’s ALWAYS business. A big mistake some real estate investors make is letting their heartstrings get involved and making decisions based on emotional responses. Forgiving a late-paying renter because of an anomaly hardship is one thing. But becoming a doormat over several months of unpaid rent because you feel sorry for someone isn’t smart business. Similarly, buying a property because you got caught up in a bid competition with another investor isn’t a great idea either. Emotional decision-making isn’t something you’d engage with at a traditional job. And you certainly don’t want it in your real estate business.

5. Trying to Grow and Scale On Your Own

One of the biggest rental property faux pas, if not THE absolute biggest pitfall you can avoid, involves recognizing the need for others to help you grow and scale your portfolio. You might be able to get ahead and manage one, maybe two properties on your own. But if you’re looking to boost your investment to include multi-family properties, out-of-state properties, or several pieces of rental property, you’re going to need professional help. It will cost you more to NOT work with a property management firm.

When you’re ready to elevate your property investment business to the next level, let PMI JCM Realty Group be your guide! We can help you see around those unknown corners and avoid costly pitfalls along the way. And we’re your biggest asset for generating revenue, boosting cash flow, and improving your portfolio health!

Rental Property Guidance

PMI JCM Realty Group remains dedicated to sharing emerging trends in the rental property investing market. Moreover, if you want to explore more effective methods for improving your landlord-tenant experiences, we can help. Find insights to boost your vendor relationships and bottom-line ROI, too, when you sign up for our free webinar. We’ve compiled the must-know insights and game-changing expertise for today’s rental investors in Tampa and beyond.

Experience it for yourself with our webinar: How to Streamline Your Rental Portfolio for Maximum Growth! Rental property investors always find something innovative worth considering.

You can always get answers, too, when you connect with us on social media! Share your obstacles with others and participate in our Facebook Group discussions, which are great for discovering insights into the most pressing rental management questions. Join these insightful conversations and collaborate with top property managers!

You can also reach out to other property owners interested in achieving similar portfolio ROI goals and learn about effective management strategies. Also, exchange suggestions and ideas with fellow professionals. Talk in-depth about today’s tenant challenges and market nuances. And should you require a more detailed or tailored solution, hop online and schedule a meeting on my calendar!