Many people believe that being a landlord is one of the simplest jobs. After all, you only get tenants and collect rent at the end of every month. Wrong! Being a landlord and managing our property is not easy.
You may gain a lot from owning rental properties. However, this is a job that has numerous headaches. You ought to know what to look for to prevent the many pitfalls that discourage most people from being landlords.
Six Main Issues To Avoid As A Landlord
Here are the main issues to avoid as a landlord.
1. Maintenance Issues
Property maintenance is crucial to ensure our property is in good condition. However, things will break, irrespective of how careful you are with your property. You have the responsibility of fixing things when they break.
The rule of thumb is to respond to complaints within a day. That means you should have a reliable team of professionals who can fix things on time. Problems may arise anytime, and some, like a faulty tap, may be urgent.
Therefore, the team you have as a backup should be available around the clock. It is also crucial to properly maintain the property to avoid frequent issues. Remember, addressing issues the moment they pop up and become bigger saves you money, time, and headaches.
2. Bad Tenants
The kind of tenants you give your property can determine how your job as a landlord or property manager will be. It is always critical to ensure you get the best tenants for your property to reduce rent collection and eviction issues. Therefore, you must conduct thorough background checks to ensure you get quality tenants.
Conduct a criminal check to ensure you don’t rent your property to criminals. If a tenant has a criminal background, it may be a good idea to drop them and deny them the chance to live on your property. You can also contact previous landlords to know the behavior of your potential tenants. Are they stubborn when paying rent? Do they follow house rules? These are some things you should confirm from the landlords.
3. Rent Collection Issues
Collecting rent is one of the major issues that landlords or property managers face. You want the tenant to let you know when they will pay off their rent since not many follow the lease agreement on rent payment dates. Furthermore, collecting rent in cash can be an issue.
You don’t need to rely on the tenants to send the rent every month. Introducing property management software for multiple units is the best way to avoid issues with late rent. The software provides an online platform for tenants to pay rent with ease. A direct deposit will also ensure your tenants pay their rent simultaneously every month.
Eviction is a loss to both parties and is not always a pleasant experience. Therefore, it is crucial to avoid such incidents. One thing you can do is hire an eviction attorney. You need to have a smooth drawn-out process and solve security deposit conflicts.
That means eviction is not a pretty thing. You need a professional way of handling issues with tenants. However, a lawyer will be necessary to represent you and protect your rights as the landlord if it comes down to an eviction.
5. Property Damage
Your property is susceptible to wear and tear with use and age. However, extensive damage can pose an issue. Normal wear, like worn-out paint, is understandable, and you can repaint after a tenant vacates the house. However, property damage will be handled differently. Remember, the security deposit you collect at the time of leasing is meant to cover these damages. So, use it to repair these damages and keep receipts of the costs to avoid issues in the future.
6. Tenant Turnover
One major issue you can deal with has many vacant rooms. If you want to know if your rental business is successful, check your vacancy rate. It should be low to ensure you get enough income from the rentals. So, if your vacancy rate is high, understand why. Know why tenants don’t renew after the end of the leasing contract. Make improvements to your property, review your rent and attract the right tenants.
You will likely experience headaches as a landlord or rental property manager. We have also provided several solutions to allow you to deal with them and avoid losing money. S, ensure you get the right tenants and invest in software to easily manage your units.
Remember to reduce eviction cases and tenant turnover by improving your property. Enforce rules and follow up with tenants to know how they feel. It is also vital to maintain your property to avoid costly expenses.