Even experienced investors have a hard time avoiding the common pitfalls that can easily trip us up when it comes to buying and renting out property. There are a lot of details and requirements to navigate when you’re looking for Orlando investment properties, and you don’t need to chastise yourself for every mistake you make. The only time you’re really in danger is when those mistakes get costly or involve legal liability.
As experienced Orlando property managers, our job is to help investors and property owners avoid the most dangerous mistakes. Today, we want to talk about some of those pitfalls that can set you back and mess up your investment plans.
Stop Trying to Make Millions in a Week
One major mistake is the idea that you are going to get rich quick.
There was a brief period of time where flipping houses allowed investors to make a lot of money quickly. That’s not really how it works in the long term investor’s cycle. Investing in real estate has the potential to earn you a lot of money. As your investment portfolio grows, so will your financial stability and your long term wealth. But, this isn’t a get-rich-quick scheme.
The general investment advice is this: it’s a marathon, not a sprint. You’re investing for the long term, so be prepared to grow your wealth slowly. To really earn any type of return on your investment, you can expect to hold and rent out your property for at least five or 10 years, maybe even longer. Don’t get discouraged if you’re not earning cash flow right away; give your investment time.
Don’t Forget the Expenses
There will always be costs associated with leasing, maintaining, and managing a rental property. In fact, those costs will likely be more than you expect – so plan for that. We often encounter investors who forgot to factor in the cost of vacancy or tenant turnovers. Or, they don’t think about the costs involved in routine maintenance issues and even emergencies. This is a huge pitfall.
You’ll have to pay property taxes and insurance. Make sure that you do some budgeting that includes all these expenses you’re not anticipating. An eviction, for example, isn’t likely, but you should still have a reserve fund for potential legal issues and tenant disputes.
Avoid Investing in the Wrong Orlando Rental Property
Sometimes investors can get emotionally involved in the properties they’re buying. A common pitfall is trying to buy a home you’d like to live in yourself. As an investor, you have to remember you’re not looking for your own home. You’re looking for a property that tenants will find appealing, so you have to think like an Orlando tenant would. They are looking for clean, well-maintained homes close to good schools, work, and recreation. They don’t care as much as you do about stainless steel appliances and tile floors.
Orlando Property Management
Trying to do everything yourself is also a major pitfall. It’s impossible to be an expert at everything, and successful investors do not hesitate to hire professional help when they need it. Your Orlando property manager will know the local market, understand the laws, and have great systems in place for leasing, managing, and maintaining your rental home.
We’d love to talk to you more about how to avoid some of the more common investment pitfalls. Contact us at Park Avenue Property Management, and we’ll help you work towards a better rental experience.