Ash Buyers Agency

First-Time Investors: Avoid 7 Property Management Mistakes

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Stepping into the world of property investment is undeniably exciting, but it comes with its fair share of challenges. For first-time investors, managing a rental property might appear simple at first glance, yet it’s often filled with costly pitfalls that can erode your returns and shake your confidence. From selecting the wrong tenant to underestimating maintenance costs or overlooking key legal obligations, these missteps can quickly turn a promising investment into a financial headache.

At Ash Buyers Agency, in this blog, we’ll uncover the most common mistakes that new investors make and, more importantly, how to avoid them from the outset.

1. Letting Rent Be Set Too Low (or Too High)

Setting the rent incorrectly can quietly sabotage your returns. Too low, and you’re missing out on potential income. Too high, and your property may sit vacant, draining your cash flow week after week.

Many first-time investors assume their property manager uses current data to set the rent, but that’s not always the case. Some still rely on guesswork or outdated benchmarks, which often results in underperformance.

What to do:

  • Ask how your manager determines rent, do they use live, suburb-specific data?
  • Request regular rental reviews to stay aligned with market trends.
  • Make sure the pricing strategy is backed by actual demand, not just a hunch.

When rent is set strategically and reviewed regularly, it helps keep your income strong and your vacancy rates low.

2. Skipping the Tenant Screening Details

Some of the costliest problems in property investment, late rent, property damage, and constant conflict, can often be traced back to placing the wrong tenant. Poor screening is a common cause, leading to major issues that could have been avoided.

Unfortunately, some managers cut corners in their rush to fill vacancies quickly, but speed should never come at the expense of proper due diligence.

What to do:

  • Make sure your manager conducts thorough background checks, credit checks, and reviews rental history.
  • Ask about their selection criteria, do they prioritise stability and reliability?
  • Choose the right manager, someone who understands that tenant placement is about more than filling a vacancy. Look for a professional who focuses on finding quality tenants who will become long-term tenants.

A careful selection process saves money, reduces stress, and helps you avoid sleepless nights.

3. Ignoring Maintenance Until It’s Too Late

Ignoring maintenance and postponing essential repairs can quickly reduce value and irritate tenants. Even worse, it can leave you non-compliant with tenancy laws, exposing you to unnecessary risks.

To stay on top of things:

  • Schedule inspections every 3–6 months to catch issues early.
  • Confirm that your property manager has a reliable trade network to handle repairs promptly.
  • Set expectations for both urgent repair and non-urgent repair turnaround times to ensure a smooth experience for everyone involved.

4. Lack of Ongoing Communication

As an investor, a lack of ongoing communication is a major red flag. Maintenance issues, tenant disputes, and other problems can escalate quickly if you’re not kept informed.

Clear and consistent updates are essential, something you should expect, not chase.

What to do:

  • Confirm that your manager sends regular updates, such as monthly reports.
  • Ask about their communication policy: how often will they reach out, and through which channels?
  • Make sure there is an escalation process in place if concerns aren’t addressed promptly.

Staying in the loop gives you peace of mind and greater control over your investment.

5. Ignoring Hidden and Ongoing Fees

That appealing management fee of “7%” might seem like a great deal until the hidden fees and ongoing fees start to surface. Leasing fees, marketing charges, inspection costs, and admin add-ons can quietly increase your true cost, often bringing it closer to 10–12%.

These unexpected expenses can eat into your returns more than you realise.

What to do:

  • Review your agreement and fee structure annually to stay informed.
  • Request an itemised breakdown of all potential charges.
  • Compare with other local agencies to ensure you’re getting value.

Transparency is essential to know what you’re paying for and what you’re not.

6. Overlooking Lease Agreement Clauses

Overlooking key Lease Agreement clauses can lead to serious issues, including disputes, missed rent, or challenges in reclaiming your property.

What you should do:

  • Ensure your lease contains clear clauses outlining payments, renewals, and tenant responsibilities.
  • Ask your property manager to review and update the lease regularly as laws evolve.
  • Stay informed about your rights and obligations as a landlord to protect your investment and avoid unnecessary complications.

7. Choose a Property Manager Who Works for YOU

A great property manager can make a difference, but it all starts with buying the right property in the first place.

At Ash Buyers Agency, we’re the best buyer’s agent in Sydney, focused on helping you build a high-performing portfolio from day one. From strategy to suburb selection, negotiation to settlement, we help you invest with clarity and confidence.

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