Top 5 Mistakes Investors Make in Property Management (and How to Avoid Them)

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Managing an investment property is not just about collecting rent each month. Done well, it is the foundation for long-term wealth. Done poorly, it can quickly become a stressful and expensive experience.

Over the years we have seen the same mistakes come up again and again. The good news is that with the right systems and support, they are all avoidable. Here are the top five property management mistakes investors make and how to steer clear of them.

1. Poor Tenant Screening

One of the biggest risks to your investment is choosing the wrong tenant. Rushing through the application process or skipping thorough checks can lead to unpaid rent, property damage, or lengthy disputes.

How to avoid it:

• Always check rental history and references

• Run background and employment checks

• Look for tenants with a history of paying on time and caring for the property

A professional property manager has the tools and experience to identify red flags that landlords often miss.

2. Ignoring Market Rent Reviews

Many landlords set the rent and then forget about it. Over time, this means you can end up undercharging by hundreds of dollars each month compared to current market value.

How to avoid it:

• Review rental prices in your area at least once a year

• Stay across vacancy rates and demand in your suburb

• Adjust rent fairly to keep pace with the market while retaining good tenants

A property manager will keep you updated and make sure you are not leaving money on the table.

3. Underestimating Maintenance Costs

It is easy to think of maintenance as something you can deal with later, but ignoring repairs usually ends up costing more. Small issues can turn into major problems if left unchecked.

How to avoid it:

• Budget for ongoing maintenance (at least 5% of rental income)

• Schedule regular property inspections

• Address repairs quickly to protect both the property and the tenant relationship

Well-maintained properties attract better tenants and hold their value longer.

4. Failing to Understand Legal Obligations

From bond lodgements to safety requirements, there are strict laws around rental properties in WA. Falling behind on compliance can lead to fines or legal disputes.

How to avoid it:

• Stay updated on tenancy laws and obligations

• Use clear, legally compliant lease agreements

• Keep documentation of all communications, inspections, and repairs

Property managers make sure you stay compliant without the stress of keeping up with changing legislation.

5. Trying to Do It All Yourself

Many investors underestimate the time and knowledge needed to manage a property effectively. From chasing rent arrears to organising trades, it can quickly become overwhelming.

How to avoid it:

• Be realistic about the time you can commit

• Work with a professional property manager who acts in your best interest

• Free up your time so you can focus on your job, family, or planning your next investment

For FIFO workers in particular, managing a property from site is nearly impossible. Professional management ensures peace of mind while you are away.

Final Thoughts

Property management can make or break your investment returns. By avoiding these common mistakes, you protect your property, your income, and your future wealth.

At Motivate Property Group, we handle everything from tenant screening to rent reviews and compliance, so you can invest with confidence.

Ready to avoid the stress of self-managing your property? Get in touch with our team today and let us take care of the hard work for you.