Truth be told, the life of a landlord is never easy. As a landlord, you have to wear many hats and juggle numerous responsibilities on a daily basis. Owning and managing a property (or more) is no simple task. A lot of people are drawn by the possibility of large financial gains when contemplating to become landlords. It’s true that this activity can make you a tidy profit, but it can be just as stressful as it is rewarding, and in some cases even more.
You’ve got to take into account the drawbacks as well, but some fail to understand the challenges it involves. If you’re not good at multitasking and you don’t perform well under pressure, being a landlord can be more of a curse than a blessing. Not understanding your responsibilities and not knowing how to handle day to day tasks can put you at risk for a number of problems. That’s why it’s important to be well prepared and know exactly what to expect before starting down this path. Here we’re going to tackle the most common issues landlords face and how to properly address them.
High turnover rates
One of the problems that can put landlords in a tough spot is dealing with high tenant turnover rates. It’s normal to have tenants who come and go, but when this happens far too often, the result is poor cash flow. If you already know how to find good tenants, the problem is half-solved. But you must also learn how to keep them, if you don’t want to repeat the same scenario over and over again. This part can prove a bit more difficult, but not impossible.
If you want to keep your tenants happy, you should tend to their needs and make sure their requests are handled quickly and effectively. Whether something needs repairing or they require urgent assistance, tenants should be able to contact you at all times. Ensuring good property maintenance is essential. A fair rent rate is also an important incentive for renters. If the rent price is too high, it’s just a matter of time until they’ll find a better deal and move out of your property, so try to keep the rent rates at a reasonable level.
Late rent payments
Finding long-term tenants won’t solve all your problems unfortunately. Some tenants, although they have no intention of moving out, are constantly late on rent payment. So how can you convince them to be more punctual and pay their rent on time? Saying pretty please isn’t likely to yield any results, but keeping in touch with your tenants constantly might. This will show them that you’re a proactive landlord who cares for their wellbeing, but it will also give you the opportunity to check on them more often and contact them easily when you need to collect the rent. Apart from that, you should have a clear rent collection schedule and never stray from it.
No property takes care of itself, and as a landlord you shouldn’t expect your tenants to do any maintenance work. It’s your responsibility to keep the buildings you own in good condition. There are countless things that can go wrong or break down in any property, even in new builds. From plumbing system issues to appliance malfunctions, you have to be ready for everything. For example, if your tenants are suddenly left without hot water and you have to shut down your boiler for repairs, you must find a mobile boiler fast to make sure residents don’t experience any inconveniences. Regular inspections are recommended as they can save you a lot of trouble and money.
Evictions are time-consuming and nerve-racking processes that no landlord wants to deal with, not to mention they’re also costly. The first step you should take to avoid evictions, is to improve your screening process. Run thorough background checks on your potential renters and get references from previous landlords to make sure they meet all the necessary requirements and they’re less likely to cause problems. Another measure you can implement is creating a payment plan for residents who fall behind with rent payment. Lastly, you should strive to build good relationships with your tenants and ensure efficient communication. These measures might not completely eliminate the possibility of dealing with bad tenants, but it greatly reduces this risk of reaching eviction point.
When a property remains vacant for too long, the financial loss can really put a strain on your budget. The more time you spend looking for new tenants, the greater the financial damage will be. A vacant property is like having a hole in your pocket that makes you lose money constantly. You keep investing in it, but it doesn’t generate any profit. Many landlords deal with this issue, not because they deal with bad tenants, but because they don’t understand how marketing works. If you’re in this situation, you might want to brush up on your marketing skills. Without good marketing, it’s going to be hard to be successful as a landlord. Do your research, get to know the market in which you’re leasing and your potential customers, if you want to find good tenants for your properties.
All landlords should be aware of the legal issues and liabilities they can face before they start looking for tenants. If you don’t follow the rules, you can easily find yourself at the wrong end of a lawsuit. But if you want to follow the rules, you must first know what those rules are. The obvious solution is to get familiar with the laws and regulations regarding landlord activities in your state. This might seem like a daunting task, especially if you’ve never had to understand legal terms, but it’s something you have to do in order to avoid legal trouble. It’s important to know all your legal rights and responsibilities, so take your time and study this matter carefully.