They happen all too often – simple mistakes that end up costing a more than simple sum. There are several ways to make sure you don't fall into some of the common property investor traps.
Balancing your rent price is a difficult one. Ask for too much and you'll probably have an increased vacancy rate. Ask for too little and you're simply throwing money away. And advertised rents don't help much, because ultimately you have no idea how well those properties are doing either. The best way to strike the right balance is get some professional advice from an Adelaide property manager.
Don't only budget for money coming in – allow some excess for a rainy day. Or a leaky roof on a rainy day. You've heard the idiom "failing to plan is planning to fail", and the same is true for property investment. Make sure you have budgeted for every aspect, including charges from your local council, your lender, insurance, etc, and then allow a little bit more. Just in case.
Any homeowner knows there is a fair bit if maintenance to be done around the place. The problem is when you're not living there it can be easier to forget what needs doing. Regular inspections and maintenance will mean fewer nastier surprises down the track. It will also mean you keep up the value of your property, which is important if the long term plan involves selling at a healthy profit.
Be proactive in marketing your property for rent – a week's vacancy won't break the bank, but four might. If your tenant gives notice, make sure you are ready to clean, repair and advertise as soon as possible to ensure minimum downtime between tenants.
If this does all sound like a bit too much, make sure to look at the services of a property manager who could do all of this for you and more.