The Top 3 Mistakes Property Owners Make (And How to Avoid Them)

How do you handle mistakes?

When it comes to your rental property, some mistakes are easy to recover from. A misplaced key. The wrong shade of paint. An overdue landscaping invoice.

Some mistakes, however, can be difficult to untangle. They can also be expensive. Fair housing mistakes. Security deposit violations. Choosing the wrong tenant. Our list of potential catastrophes goes on.

We’re shining a bright light on some easy mistakes that rental property owners often make, even if they’re experienced. Here are the top 3 mistakes we see, as professional property managers, and how to avoid them.

Mistake #1: Incomplete Tenant Screening

The wrong tenant can be devastating to your investment. The risks are clear: late rent payments, lease violations, property damage, and conflict. We have seen plenty of situations where the wrong tenant quickly turned a promising investment into a nightmare for unprepared owners. Poor tenant selection is one of the biggest and most expensive mistakes a property owner can make. Unfortunately, some landlords skip or rush the screening process because they want to fill a vacancy quickly.

This is a problem because evictions are costly, and we’re not only talking about legal fees. They’re costly in lost rent and turnover expenses. Poor tenant screening can lead to eviction and lots of other potential problems. Here is how you can avoid placing unqualified tenants:

1. Credit Checks. Look for a history of on-time payments, not just the score itself.
2. Background Checks. Eviction records and rental histories can reveal potential risks.
3. Income Verification. Require proof of stable income, typically 2.5–3 times the rent amount.
4. References. Speak with previous landlords to get a feel for their rental history and behavior.

Don’t rely on your “gut feeling” or your desperation to get a tenant placed. A good tenant isn’t just friendly in person. They have a proven track record of paying on time and caring for the property. If you don’t have the time or tools to handle this thoroughly, consider working with a reputable property management company that specializes in tenant placement.

Mistake #2: Neglecting Regular Maintenance

It’s so easy to make a mistake with maintenance.

We know it can be tempting to put off repairs or skip preventive maintenance, especially when rental income is coming in, and there are no visible problems. But neglecting maintenance is ever a good idea. Sooner or later, you’ll run into a problem that costs more simply because it was ignored for so long.

Small issues become major repairs when left unaddressed (a small leak can turn into thousands of dollars in water damage). Deferred maintenance reduces your property’s value and curb appeal, making it harder to attract quality tenants. And, tenants are more likely to leave if they feel their maintenance concerns are ignored.

We suggest the following:

1. Create a Maintenance Schedule. Regularly inspect HVAC systems, plumbing, roofing, gutters, and appliances. Seasonal check-ups can also prevent big problems.
2. Respond Quickly to Repair Requests. Prompt repairs show tenants you care, which boosts satisfaction and retention.
3. Budget for Maintenance. Set aside a reserve from every month’s rental income so you’re prepared to pay for any unexpected repairs or replacements.
4. Use Trusted Vendors. Build relationships with reliable contractors who can handle repairs efficiently and at fair prices.

Proactive maintenance saves you money in the long run and protects your investment’s value while keeping tenants satisfied.

Mistake #3: Underpricing (or Overpricing) the Rental

Pricing your rental incorrectly can cost you in two ways:

• If you set the rent too low, you’re leaving money on the table
• If you set the rent too high, you risk long vacancies.

Many property owners make pricing decisions based on guesswork, outdated information, or emotional attachment to the property. You might have a feeling about what your property is worth, but unless it’s backed by market data, that feeling isn’t necessarily accurate.

It’s easy for us, as property managers, to help you avoid this mistake. It starts with good market data. We look at comparable properties in your neighborhood, considering size, condition, amenities, and location. We know that markets shift seasonally and year to year, so we review your pricing annually, at a minimum. We also factor in unique features when we’re pricing your property. Upgrades like in-unit laundry, modern kitchens, or fenced yards can justify a higher rent.

A well-priced rental balances maximizing income with keeping vacancy rates low, and that’s where steady, predictable cash flow lives.

There are also new rent control laws to be aware of, and this impacts pricing when you’re listing the property and even more so when you’re negotiating a renewal rate. Make sure you know the limits, and if you don’t, contact us so we can keep you compliant.

Trying to Do Everything Yourself

The biggest mistake, we believe, is trying to do everything yourself.

Managing a rental property can feel like a full-time job because in many ways, it is. Between marketing, showings, screening, leasing, repairs, tenant communication, and bookkeeping, it’s easy for property owners to become overwhelmed.

Consider partnering with a professional property management company. The right manager will handle everything from tenant placement to rent collection to maintenance, freeing you up to focus on the bigger picture.

If you want to avoid these mistakes and a lot of others, it’s important to have the right professional team behind you. Know when to bring in experts to protect your investment and your time. You’ll find that you’re not only avoiding mistakes, you’re earning more and spending less on your investment properties. All with the help of an experienced management partner, who frees up your time and delivers peace of mind.

When you need some help or find yourself making these mistakes, contact us at SunWorld Group. We’d love to be your professional resource. We’re here to help with all your property management needs, and provide services throughout Southwest Washington and Southeast Florida.