Being a landlord can feel like a thankless task, made even harder by the fact society at large treats you with distrust. While it’s a viable method of securing your financial future, in the moment, it can feel like nothing but an uphill battle.
It can feel like there are problems at every turn for a landlord. For the most part, that’s because… well… there are. Avoiding the big ones is the key to making your property investment venture a success, but what exactly are the worst holes you need to ensure you leap over?
1. Short-Term Tenants
The holy grail of the landlord is the long-term tenant who is no trouble. Someone who moves in, sees the property as their own and to be treated with respect, and doesn’t leave. If you ever encounter this kind of tenant, grab hold of them and don’t let go!
If you fall into a cycle of many short-term tenants, no one staying beyond their initial six months, then the results can be catastrophic. For one thing, you don’t have a steady stream of rent. You also incur more fees when you have to advertise for new tenants, as well as constantly fix any damage. If you find a tenant who wants to stick around, it’s well worth doing what it takes to ensure that they do so.
2. Endless Household Repairs
Nothing will make a dent in your return like having to run repairs on a house constantly. Not the kind of repairs that are caused by a tenant, but just routine maintenance of an aging home. That’s why, before you buy, it might be worth considering new developments such as these Transit City condos for sale at the moment. New builds mean less maintenance; while they are more expensive upfront, they are going to cost a lot less to keep running.
3. Disputes With Tenants
Being friendly with your tenants is a must, even if you let through an agency. Tenants need to feel that they can talk to you if there’s an issue, rather than you being an overbearing figure or – potentially worse – someone they don’t really know.
This means sticking to your side of the deal as much as possible. Don’t just go around to the house; it’s invasive and against your rights as a landlord. Keep in touch via email and always arrange visits, making sure you are friendly and always willing to discuss things. It’s far better a tenant tell you about any issues – such as damage to the house or problems paying rent – so you can take action to help the situation, than them feel like they have to hide from you.
4. Lack Of Insurance
Landlord insurance is a vital component to managing the financial side of being a landlord. It’s an extra monthly expense, yes, but you will be delighted that you have it should it ever be required. Make the payment and know that you have a backup should something go wrong – it’s not worth taking the risk of going without.