Top hassles of owning a rental property

Top hassles of owning a rental property

What is a rental property?

In this article, we will look at residential rental real estate as homes purchased by an investor and inhabited by tenants on a lease or other type of rental agreement. The idea of investing in real estate may sound alluring. But buying a rental property for income and long-term capital appreciation can have its ups and downs.

1. Finding the right tenants

One of the biggest challenges that landlords face is finding the right tenants to occupy their investment property. The right tenants take care of the property, report maintenance issues early, pay rent on time and pay a competitive rent rate. However, when it’s time to find a new tenant, landlords are sometimes disappointed with the rent they receive. Sometimes lower rents are market-driven, but can also be due to failure to maintain the property and keep it in great shape. Start by implementing a thorough tenant screening and verification process to ensure you identify good tenants. In addition, plan any maintenance, repairs or renovations well ahead. This will help you get the rental price your property deserves.

2. Dealing with problem tenants

Good tenants will keep your life easy, profitable, and amazing. On the other hand, bad tenants will give you more headaches than you can imagine, and they can cost you an absolute fortune. One of the absolute best mitigations against bad tenants is to have higher-end properties in nicer areas that you can charge more for. Also, make sure you have a solid tenancy agreement that covers all the bases. It is highly recommended that you engage a solicitor when drafting a lease. This will ensure that your lease agreement touches on all the important aspects and is taking into account the legal requirements in your area.

3. Repair and maintenance issues

Another key aspect of owning a rental property is attending to repair and maintenance issues. Maintenance matters will range from basic to more complex issues with significant financial consequences. Generally, though, repairs are unavoidable. A property will always deteriorate to some degree, and you, the owner, will be responsible for keeping it up. Scheduling regular maintenance and staying on top of things can help you avoid a financial shock when something breaks down.

4. Dealing with bad property managers

One of the crucial decisions you will have to make as a property owner is whether to engage a property manager or manage your property independently. If you use property managers, you likely will come across less than satisfactory property managers. Bad property managers can cost an owner a lot in repair overages, vacancies, bad tenants, and not taking care of the property. Thoroughly vet potential property managers and follow up on any references to ensure you get the best property manager. This is essential to ensure that your rental property remains profitable and in the best condition.

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