5 common mistakes landlords make

by CRE on 24 Mar 2015
By Lena Guirguis

Even seasoned investors make small oversights that could cost huge in the end. Lena Guirguis outline the five common mistakes most landlords make.
  1. Rushing to purchase.
New investors tend to want to get that first deal under their belt in a short period of time. Why is rushing into a purchase so detrimental to your long-term success?

  1. You will categorize a cheap property for a good deal. There are many properties that are priced below market, and bring in huge returns. However, what you see on paper and in reality can be two different things. Take the time to confirm what reality actually is.
  2. You trust the Realtor or seller’s information as fact. The Realtor only has access to the information provided by their clients, and if the seller is in a tough situation they may massage the facts to highlight the positives of the property. You need to take the time to do your due diligence and confirm facts for yourself.
  3. You bite off more than you can chew. Complete one project before jumping into the next, and if you want to run parallel projects, ensure you have a team you can trust and a slush fund.

  1. Not understanding the market.
When buying a property, you need to look at all the factors within that market that impact you and your new purchase. This goes beyond the basics of population, job growth and economic fundamentals.

Things to consider:
  1. Types of units required in the area. If the area is desperate for two and three-bed homes, target that property type.
  2. School zones and boundaries. Understand where the most desirable schools are and what the boundary lines for enrolment are. You don’t want to buy a property that falls one block away from the desired zone your future tenants want to be in.
  3. Preferences for layout and style. We need to educate ourselves and understand what our future end user wants.

  1. Underestimating the importance of property management.
If you have the right manager in place, the small oversights can be managed to ensure minimal loss over the years. This is not just about hiring a property manager. You need to know the day-to-day management before you close a deal.

read more > 1 2

Post a Comment

Most Trending News

Lumber prices: Canada forecasted for a calmer market in 2022

Prices of lumber skyrocketed to never before seen heights in the past year as the supply chain suffered the effects of the ongoing COVID-19 pandemic.

Read More
Mortgage arrears Canada

Prices on many things have gone up and some are now being forced to go into arrears on their mortgage. But after an explosion of mortgage arrears, things are starting to look better.

Read More
Presentation will teach some of the secrets to raising capital

A presentation will be hosted on Wed. Nov. 3 at 7 p.m. to discuss ways real estate investors can raise capital and finance all of their deals without spending their own money.

Read More