Many landlords fall into the same traps, but if you are not careful these consistent oversights can turn into huge landslides of trouble.

Setting the rent too high or too low

Before purchasing an investment property, extensive research must be carried out to determine an appropriate rental price. If the rent is set too high, the property might not attract enough interest from prospective tenants. It will sit vacant and gathering dust while you achieve no profit return. On the other hand, if the rent is set too low you may experience financial pressure and the property may attract undesirable tenants.

Look at listings similar to yours in both features and locality to gage what the rental price should be.

If a property manager is hired, they should be able to provide you with information on similar listings and advise you on an appropriate rental price.

Failing to keep track…