Randall Averitte of Real Property Management Discusses The top Three Mistakes Income Property Owners Make
Owning an income property is a great way to have almost passive income and equity in real estate. We asked Randall Averitte of Real Property Management in Phoenix, Arizona to give us the heads up on the top three mistakes income property owners make.
Not considering property taxes when setting rental rates.
When you buy a rental property expect that your property tax bill is going to go up. In Arizona, property taxes for owner-occupied homes are capped, but this is not the case for income properties, so be aware of this potential increase when determining your rental rate. This mistake that income property owners make can cost a lot and turn a profitable property into an expensive investment property.
Not knowing renters can do more damage than you realize.
Owning an income property comes with risks and this particular risk can be shocking and can be expensive. Randall Averitte says, “As a professional property manager, I hear horror stories from income property owners that make you gasp. They come to me for help for this reason. They just can’t deal with the stress and management of the tenants and property.”
Randall continues to share a particularly shocking story, “A nice couple came into my office looking for help, they checked in on their property after their tenants moved out abruptly. They found ALL of the doors missing, the carpet they just installed eight months prior looked like someone poured oil on it, a large picture window had been broken and replaced with a different window that didn’t fit and didn’t match, and the front door had been broken into and glued back together to try and hide the damage.”
Which leads us to #3
Good tenants are worth their weight in gold.
Spending thousands of dollars in repairs quickly teaches you to be more selective of tenants. It also teaches you to be appreciative of good tenants. Good tenant treat your income property as if it were their own.
This mistake income property owners make is easily rectified.
“When you have good tenants,” advises Randall, “make sure to treat them well. Perhaps promise not to raise their rents incrementally and be quick with any needed repairs. Good tenants often require fewer repairs and will leave less wear and tear when they move out. In the long run you are way ahead in profit and peace of mind.”
You can read more about finding great tenants on this previous blog post.
With 25 years of professional property management experience, Randall Averitte and his team at Real Property Management in the Phoenix and Tuscon areas know how to guide property owners through the process of profitable income property ownership.
Carter, a client of Real Property Management, says this, “A truly fire-and-forget solution for those with rental properties. Payment received on time every month and tenants managed. When a problem does arise, prompt communication and available resources made available to deal with the problems quickly.”
Whether looking to buy your first income property or want to have experts handle your existing properties, it’s always a good idea to contact the professionals at Real Property Management so you can avoid these common mistakes income property owners make. If you have any questions, send us a message HERE