There's nothing wrong with being overly proud of owning an investment property, but is this pride interfering with the way you deal with it? As a first-time investment property owner, you need to know about the dangers of becoming emotionally involved with your rental property. Being able to recognise in advance that you aren't dealing with this situation effectively could stop you from losing money in the future.
What Are The Signs Of Emotional Attachment?
Before you can tackle being emotionally involved with your investment property, you first have to recognise some of the signs that you have this problem. Do any of these ring true to you when you think about your rental?
- Your list of rules you expect tenants to abide with is as long as the list you have for your teenager.
- You constantly think about the property and make up reasons to visit it.
- You are overly picky about the quality of tenant who applies for the property.
- You get offended if there is an issue with the property and the tenant contacts you about it.
If you nodded your head to any of these statements, then you can admit to having an emotional attachment to your rental that is going to make it hard for you to manage this investment.
Why Is Being Emotionally Attached A Problem?
There are two main problems when it comes to being overly attached to a rental property. Firstly, you could be overstepping the boundaries of the rental laws of your state with your constant visiting. In Queensland, for example, the Residential Tenancy Authority states you can only enter the property at any time if the tenant agrees. If they do not agree, then you have to give written notice of your intention to enter. If you wish to do a visual inspection, for example, you need to give 7 days written notice, and you can only do this inspection every three months. If you overstep these boundaries, your tenant can lodge a complaint with the RTA.
Secondly, requests for improvements to a rental property are going to increase its value at the end of the day, and they are not a personal attack on you as the owner. When you can't see that, you could be ignoring maintenance requests that will grow into more expensive problems when they are ignored.
If you don't think you can take a step back from the day-to-day running of your property, then you need to enlist the help of a property management company to take care of this for you. When you're not forced to think about the property on a daily basis, you will be able to break your emotional attachment to it. This means you can make wiser business decisions with your head rather than your heart.
For more information, talk to a company like Verse Property Group.