Tired landlord syndrome and how to avoid it

Posted on Sunday, June 2 2013

How to be a better landlord

 

Tired landlord syndrome is a common problem we get called in to try and fix as property managers in Dunedin.

We have all heard the stories, a would be property investor is seduced by all the talk around him from friends and work colleagues about their property investments and that he should have a go.

So after reading a couple of articles in the paper or a magazine they go out and buy a property, which they think is a good cheap price and not realizing all of the possible problems they may have bought.

Due to a lack of knowledge, rather than the overall idea being a bad one, this new landlord quickly realises they have taken on a part time job managing the tenancy, arranging or doing all the repairs to the property that they didn’t get a thorough enough check done of when they bought and quickly see all the profits they thought they were going to make flow straight out of the door.

With all these headaches and problems is it any wonder that this would be property investor leaves the business.
That leaves us short another service provider that the country needs to supply homes, for those who are not in a position to buy.

Using the best experts in their fields at each step of the property investment process could have prevented or pre planned for most if not all of these problems so that this could have been a profitable and socially rewarding endeavour.
Attending Property investor association meetings and networking with other property investors can help a new investor decide on a set of investing rules which will help them avoid tenancy, maintenance and financing issues when they start their businesses.
Talking to and using a top property manager before they have bought a property would also minimise the risks associated with investing in property. Making sure the location and layout of a prospective purchase is suitable to attract the biggest market and then marketing the property to its best to get good quality tenants interested and applying for the home.
Having maintenance and renovation plans and budgets in advance of needing them help you sleep at night, so there are less unexpected problems coming at you. Remembering that a good deal may only net $1-2k per year in profit in the early years. A lack of rent increases to market rate, an unplanned repair or conceding an improvement to an unreasonable tenant for just a few hundred bucks could wipe out most of you slush fund or profit for the year.

These are the kind of things that can create a tired landlord and advance the selling process before they have had time to allow the investment to mature and grow in to asset in the future.
Again the best time to plan and contact your expert advisors is before you do anything rather than unpicking things later on and putting them right. Talk to your accountant, lawyer, builder and off course property manager before you buy and you should have a long and prosperous career as a property investor.

 

Find Kyle on Google+

Tania and Kyle Elmer
Directors
Mana Property Management Ltd

www.ManaProperty.co.nz

Dunedin Property Management Company

 

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Expert's Bio

Tania & Kyle Elmer

Tania & Kyle Elmer are active investors with a large portfolio of properties in Dunedin and Central Otago and mentor investors in the techniques used to grow wealth through property investing. Kyle and Tania are Co-directors of the Leading Property Mangers of New Zealand (LPMNZ). Kyle is a past president of the Otago Property Investors Association (OPIA). They founded Mana Property Management Ltd to provide specialist management services to Discerning Landlords dealing in the quality end of the market. www.ManaProperty.co.nz | Find Kyle on Google+

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