Top Landlord Mistakes We Saw Last Year (and How to Avoid Them)

Understanding the decisions that shape long-term rental performance

Working in residential property management across Perth, we see a wide range of situations play out each year. Last year, in particular, highlighted some common patterns, mistakes that landlords often make without realising the long-term impact.

Property investment is a business, and like any business, the best outcomes come from informed decision-making. Many of the issues we observed weren’t the result of poor intentions, but rather uncertainty, incomplete information, or focusing on short-term outcomes over long-term stability.

Below are five common landlord mistakes we observed last year, along with guidance on how they can be avoided.

1. Accepting the Highest Offered Rent Instead of the Strongest Application

Even when a property is priced correctly in line with the market, it doesn’t prevent prospective tenants from offering a higher amount, or landlords from accepting that offer.

One of the most frequent mistakes we observed was landlords prioritising the highest rent offered by an applicant, without fully considering the overall strength of the application itself.

While a higher weekly figure can certainly be appealing, it doesn’t always lead to the best outcome over the life of the tenancy.

In practice, this approach often results in:

• Tenants being stretched beyond their financial comfort zone
• An increased risk of rent arrears
• Shorter, less stable tenancies

A higher rent is only beneficial if the tenant can comfortably sustain it for the full lease term, not just at the start.

A better approach:
Tenant selection should be based on the complete application — including affordability, employment stability, rental history, and overall suitability for the property. The strongest application is the one that offers consistency, reliability, and long-term stability, rather than simply the highest number on paper.

2. Delaying Maintenance Due to Uncertainty

Another common issue was landlords delaying maintenance because they were unsure whether an issue was urgent, optional, or something that could wait.

Small problems rarely remain small.

We frequently saw:

• Minor leaks escalate into significant damage
• Aging systems fail unexpectedly
• Deferred maintenance lead to higher costs over time

A better approach:
Understanding the difference between urgent, preventative, and discretionary maintenance allows issues to be addressed early, often at a lower cost. Proactive maintenance protects both the property and its long-term value.

3. Rushing Tenant Selection to Avoid Vacancy

Vacancy is one of the biggest concerns for landlords, and understandably so. However, rushing tenant selection to avoid a short vacancy period often creates far bigger problems later.

This typically resulted in:

• Poor tenant fit
• Increased disputes
• Higher turnover and re-leasing costs

A better approach:
A short vacancy is usually far less costly than a problematic tenancy. Taking the time to select the right tenant often leads to longer lease terms, fewer issues, and better overall returns.

4. Not Fully Understanding WA Rental Legislation

Western Australia’s rental legislation is detailed and constantly evolving. A lack of understanding in this area remains a common issue for landlords.

Mistakes we frequently saw included:

• Incorrect rent increase notice periods
• Non-compliant entry or inspection processes
• Uncertainty around maintenance obligations

A better approach:
Staying informed about legislative requirements is essential. Understanding obligations upfront helps reduce legal risk and ensures tenancies are managed correctly from start to finish.