It seems, at first glance, that life as a landlord is an easy one. You buy the property and then the rest comes easily; the tenant pays the money, you pay the mortgage, and you still own a property as a valuable investment asset. Put like that, it sounds pretty ideal.
The truth is somewhat murkier. While that can be the case, the majority of landlords will find themselves falling on rough times more than once over the course of their careers. If you find yourself in one of these tough spots that are the most common for landlords to experience, then here are a few suggestions on getting through them.
Problem #1 – Lack Of Renters
It happens. The house is ready to go, you’re happy to hand the keys over to anyone who is interested… and no one is interested.
Like anything else in the world of finance, the rental market goes through peaks and valleys in terms of demand. Even something as simple as the time of year can influence the number of renters who are in the market for property. People tend to move more in spring and summer, so you could find yourself in the midst of a bleak winter without a tenant in sight.
Solution: If you can’t find long-term renters, then why not look for short-term? Airbnb and similar services have made it possible to make good money from short-term lets, which may only last a couple of days – but it’s a couple of days of money towards your mortgage payment. With Airbnb management services, you don’t even need to worry about the hassle of coordinating the whole process for yourself – just sit back and wait for some much-needed income.
Problem #2 – Ruinous Renters
Every once in awhile, a landlord will experience a tenancy that seems to be nothing but trouble. From not paying the rent to causing problems with the neighbours, difficult tenants are a rite of passage for those letting property – not that knowing you’re not alone makes it any easier to handle.
Solution: Know your rights when it comes to what a tenant can and can’t do. If they’re not paying rent or if they’re causing you undue stress, then don’t flinch about starting eviction proceedings. You have bought an investment; you’re not in this to babysit someone who doesn’t seem to have their life together. It’s better to have the house empty for a few months than continue having it occupied by someone who is more trouble than they’re worth.
Problem #3 – The Aftermath
Most tenants that you experience will treat your property like their own home. Any damage caused will be more than covered by their deposit, so you’re not going to have to worry about being left out of pocket.
Then again, there are the tenants who will move out – perhaps even without telling you – and leave an almighty mess in their wake.
Solution: While it may seem invasive, requesting – in writing – access to the property on a monthly basis is a sensible way of preventing this. This gives you the chance to notice any problems as they arise, and potentially even evict tenants who are causing harm and expense. This is the best way to avoid having to fix a huge list of problems once they finally move on.
Life as a landlord can be tricky, but by following the above, you should be able to exert some level of control over your investment. Good luck.
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