Let’s face it – being a landlord can be a stressful calling. Not rarely, you will have to handle multiple responsibilities simultaneously. And not dealing with these in a proper way can mean a world of trouble; from stress to financial and legal issues. That’s why you want to stay on top of any issues immediately when they arise, and not leave anything to chance.
High tenant turnover rates
If there’s one thing that’ll completely kill your cash flow – that’s a high turnover rate for tenants. That’s no big wonder, really; when your property becomes vacant after losing a tenant, you need to find a new one as quickly as possible. When tenants hire a company like bigapplemoving.com and move out, you have to spend resources on advertising, as well as time on showing the property to new potential tenants. Then, once you have a couple of candidates, you have to run a background check on them, and deal with all of the red tape that comes afterwards.
And to top it all off – once the property is vacant, it won’t generate any money for you while you search for new occupants. So, if you spend too much time looking for a new tenant, that could mean financial issues as well. That’s why you mustn’t let this happen, and try to keep your turnover rates down if you want to avoid some of the most common problems landlords face.
Strategies to keep tenants
First of all, the last thing you want is to be a purely reactive landlord. You need to be proactive in your effort to keep tenants happy. Respond to any requests they might have in a timely manner, and don’t let them think that they’re neglected. If they start feeling that way, they may ask for a moving estimate upfront, and move out as quickly as they can.
But if you want to prevent that – you will also need to make sure that your rent rate is fair. Sure, the higher your rent is, the more you will earn each month. But if your rental unit is overpriced, you will have a hard time finding tenants; which means that you’ll actually be losing money, with the constant vacancies we’ve mentioned above. So, take a look at the average market rates, and set a rent rate that doesn’t have to be too low; but just reasonable enough to attract tenants. Indeed, knowing about the art of price adjustment will solve one of the most common problems landlords face.
Also, make sure that maintenance is a priority for you. At the end of the day, no one likes living in a property that’s not properly kept and repaired. So, make any needed repairs promptly, cut the lawn, and etc. Lastly, think about what kind of tenants you want to rent out your property to in the first place. Try to look for people who are likely to stay in one place for a long time, and don’t like moving around. Have a gander at their histories, and see for how long they’ve stayed in previous properties. That way, you can aim at long-term renters.
Late payments
Once you do have a long-term tenant, the most common problems landlords face don’t stop there. For example, you may be dealing with tenants who constantly miss paying rent on time. And this can be an incredibly frustrating part of renting out a property, especially if tenants do this repeatedly.
Collecting payments better
If this situation is something that seems familiar to you, don’t worry; there are things you can do to improve your rent collection tactics. First of all, constant communication with your tenants is crucial. That’s good for making them feel like they’re getting value for their money; but it also means you can follow up with them as often as you need in order to collect the rent. Obviously, you’ll also need to screen tenants and find those who are more likely to make regular payments each month. Lastly, and most importantly – make sure that you strictly enforce the rules you set regarding rent collection. If you are lenient once, people will always expect the same from you.
Legal issues and solutions
When you’re preparing for all the common problems landlords face, you shouldn’t forget about the possibility of legal issues. That’s something you need to thoroughly prepare for, no matter how overwhelming of a task it may seem. Yes, you’ll need to familiarize yourself with all of the laws that apply to the job of being a landlord. So, take the time to learn all about the state laws that apply to this profession, as well as the relevant federal legislature.
Don’t stop there either; if you’re going to be serious about this, you’ll want to read up on your local laws as well. Many counties and municipalities have their own rules, which can differ wildly based on your location, and the location of your property. There are certain licensing laws that some local governments might enforce, and others won’t. So, while learning about all of this may probably seem daunting, don’t worry; there are local landlord associations you can join, which will support you in your efforts.