Being a landlord or landlady sounds like a dream. You can sleep in, go on vacations whenever you want, and engage in your hobbies, all while earning a decent income. However, what you observe on the surface isn’t always the same as what’s going on behind the glamour.
Though it’s far more comfortable than a 9 to 5 job, managing a rental property also comes with difficulties that can cause a tarnished image and financial losses. It’s a business, after all; hence the risks and challenges are inherent.
Still, it’s a highly rewarding job with lots of opportunities for growth, both in finances and entrepreneurial skills. If you’re about to be a landlord or landlady for the first time, here are the challenges you should expect, and the ways to beat them:
Common Struggles Faced by Rental Property Owners
Damage tends to always occur when you rent your property to tenants. It can range from a broken socket to something done intentionally so they bleed money from you. When you suspect that the latter transpires, investigate, and uphold your rights when a rogue tenant starts to demand payment.
According to the law, tenants are responsible for maintaining their living quarters, and if they damage something due to their negligence or ill intentions, they cannot demand the landlord to pay for the repairs. Hence, you may extract their payment from their security deposit or file charges against them.
In some cases, you’d also be accountable for certain damages, such as a leaky roof, foundation issues, and other broken structural, electrical, and plumbing components.
Majors repairs can be costly, but it’s an inevitable part of the job. Invest in quality building materials and fixtures to avoid frequent damages.
Late or Non-existent Payments
Tenants who habitually pay late or never pay at all are a persistent problem for all landlords. You can include late fees in your lease contract to avoid this, but if a tenant never pays in the first place, then the additional charge will be useless.
If a rogue tenant remains unfazed even after being sent multiple warnings, they may be evicted. And moving forward, you should be stricter on your payment directives.
You may experience having tenants who frequently make noises or engage in suspicious activities that your other tenants may complain about. This is a serious issue that needs to be resolved with urgency, or else, you may lose good tenants.
In some cases, the police themselves may raise the complaint, and you’ll be charged with fines, despite the unruly tenant being at fault. But since their misbehavior occurred in your property, you’ll be held responsible.
Overcoming the Challenges
As with any challenges in business, property management conundrums can also be fought with solutions. An effective and quick way to do that is to automate your key management tasks. Try out an innovative online property management software, where you can communicate and transact with your tenants digitally. Cash-flow management, inquiries, scheduling preventive maintenance, and many other important management-related tasks are accommodated by the software.
Other than that, be stringent with your screening process. Create qualifying tenant standards, run background checks, and verify their income and employment to ensure that they can pay on time.
Your lease contract must detail who will be liable for what, and what type of changes can your tenants make in the property. Include regulations regarding pets, unacceptable behavior, and noncompliance with the law.
Speaking of compliance, ensure that you’re abiding with the laws, too. Consult a lawyer before composing a contract, and before issuing an eviction notice.
The challenges in managing a rental property may be big, but keep in mind that you’re bigger than these obstacles, so keep a level head, and seek expert assistance when necessary.