Updated: Apr 20, 2020
Being a landlord is a learning experience. It's normal to make mistakes along the way and personal experience builds up over time. Some mistakes may not be detrimental, while some may be so bad that it could get you in trouble with the law.
Without guided experience, you may easily end up losing money, time, and sleep over common landlord mistakes on your investment properties.
We learn from failure, not from success! - Bram Stoker, Dracula
The mistakes can be categorised into 4 main areas :
1. Financials 2. Legal 3. Management 4. Marketing
This is a two-part article. Previously, in Part 1, which we shall look in the "FINANCIALS" and "LEGAL" type of mistakes. While in this Part 2, we shall look in the "MANAGEMENT" and "MARKETING" types of mistakes.
(14) NOT GETTING AN EXPERIENCED MANAGING AGENT
Many landlords misunderstood that their agent who got them their tenant ought to be an experienced managing agent. In reality, both types of agents have different skill sets completely.
During tenancy, landlords can encounter all kinds of situations that they may not foresee.
Getting an experienced managing agent can help the landlord navigate, negotiate and neutralise out of sticky situations with their tenants. The managing agent can be the buffer to help smooth things out before they escalate out of control.
Normally, the retention fee for engaging an experienced managing agent is 10% of the monthly rent.
However, some of rental agents are willing to carry out the role of a managing agent out of good will provided the landlords signs on the CEA Prescribed Form that they will pay commission should there be a renewal.