Top Mistakes First-Time Landlords Make (and How to Avoid Them)
Becoming a landlord for the first time is exciting – you’re stepping into the world of property investment and building long-term wealth. But it can also feel overwhelming, especially if you’re managing the property yourself.
Many first-time landlords fall into avoidable traps that can cost time, money, and peace of mind. Here are the most common mistakes – and how you can avoid them.
1. Underestimating Costs
The mistake: Thinking rental income will purely be profit.
Owning an investment property involves more than just collecting rent – you’ll need to budget for:
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Council rates
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Insurance
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Property management fees
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Maintenance and repairs
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Vacancy periods
How to avoid it: Create a realistic budget that includes these costs, and keep a contingency fund for unexpected expenses.
2. Skipping Thorough Tenant Screening
The mistake: Accepting the first applicant without proper checks.
A poor tenant can lead to:
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Missed rent payments
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Property damage
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Time-consuming disputes
How to avoid it: Always check references, employment, and rental history. A property manager will take care of this and ensure applicants are reliable.
3. Not Knowing the Legal Requirements
The mistake: Overlooking tenancy laws and landlord obligations.
This can mean:
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Incorrect bond lodgement
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Breaches of privacy
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Fines for non-compliance
How to avoid it: Stay up to date with the Residential Tenancy Act, or engage a property manager who will ensure you remain compliant.
4. Neglecting Maintenance
The mistake: Delaying repairs to save money.
This often results in:
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Bigger repair bills later
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Frustrated tenants who may move out
How to avoid it: Address maintenance promptly and schedule regular inspections. A well-kept property protects your investment and keeps tenants happy.
5. Setting the Wrong Rent Price
The mistake: Overpricing (causing long vacancies) or underpricing (losing income).
How to avoid it: Research the local market and compare similar homes in your area. A property manager can recommend the right price to balance income with tenant demand.
6. Trying to Do Everything Alone
The mistake: Believing self-management is easy and cost-free.
The reality? Managing a rental involves:
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Advertising and tenant screening
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Legal compliance
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Rent collection and arrears management
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Handling maintenance and disputes
How to avoid it: A professional property manager saves you time, money, and stress while protecting your investment.
Final Thoughts
Being a landlord is rewarding, but it comes with responsibilities. By avoiding these common mistakes, you’ll set yourself up for long-term success.
At MIX Property Group, we help landlords protect their investments and achieve strong rental returns with less stress.
👉 Thinking about renting out your property? Get in touch with our property management team today – we’d love to help.