Five massive mistakes property investors make

Investing in rental property can be a rewarding way to build wealth, but only if you avoid common mistakes that can quickly turn a promising investment into a financial headache.

Here are five massive mistakes new (and even some experienced) property investors often make and how to avoid them.

1. Choosing your agent based on cheap fees

It’s tempting to select an agent purely because they charge lower fees. But remember, you usually get what you pay for.

Cheaper fees often indicate lower service levels, less attention to tenant screening or reduced marketing quality. Selecting an agent solely on cost can:

• Lead to poor tenant selection
• Increase vacancy periods
• Result in more property damage or unpaid rent

Invest in an agent who combines experience, systems and local knowledge to maximise your rental return. The right agent pays for themselves in avoided mistakes and faster leasing.

2. Not having quality landlord insurance

Standard building insurance does not protect you against tenant-related risks. Without a comprehensive landlord insurance policy, you expose yourself to losses from:

• Rent default
• Malicious or accidental tenant damage
• Pet damage
• Loss of rent due to tenant death or tribunal delays
• Damage caused by illegal activities on the property

Landlord insurance is an essential safeguard that complements professional property management.

3. Renting to family and friends

Property investment should always be treated as a business. Renting to family or friends can seem convenient but it’s a risky decision.

Emotional involvement can:

• Make enforcing rent obligations difficult
• Lead to damaged relationships
• Result in financial loss if disputes arise

Keeping tenants and investments strictly professional is the safest approach.

4. Renting property privately without professional management

Some investors try to save money by handling all aspects of renting themselves. While it seems simple, self-management exposes landlords to:

• Poor tenant selection
• Legal risks and compliance issues
• Reduced market reach and slower renting

Professional property management ensures your property is rented efficiently, marketed effectively and protected legally.

5. Not putting money back into the property

Investment properties require ongoing maintenance to attract and retain quality tenants. Neglecting repairs, painting or carpet replacement can:

• Reduce rental income
• Lead to longer vacancy periods
• Lower the property’s resale value

Regular upkeep ensures the property remains desirable, safe and compliant with tenancy standards, protecting both your income and investment value.

The bottom line

Avoiding these five massive mistakes is critical to running a successful rental property. From choosing the right agent and insurance to keeping the property maintained and professionally managed, these actions protect your investment, maximise rental income and minimise stress.

How we can help

Our team supports property investors at every stage, from professional marketing and tenant selection to ongoing property management and insurance advice. We help ensure your investment is well cared for, leased efficiently, and protected from risks.