Common Issues Landlords Face and How to Avoid Them

Owning a portfolio of properties is something that every would-be landlord dreams about. Overseeing a range of properties that you own and seeing the income that they bring in each month is incredibly satisfying. For some landlords, owning a property delivers a passive income, and they’re happy to just receive the rental cash each month. For other landlords, renting out real estate is something they choose to play an active role in. Either way, putting your money in bricks and mortar can be a solid investment that brings you a steady income from your rental over the years. 

There are certainly many benefits to owning real estate and renting out these properties. However, whether you own a string of properties, or just one, it’s common for landlords to run into a few problems along the way. Dealing with issues relating to your properties or your tenants can be incredibly stressful. Some issues can be complicated and expensive to deal with, which, as you would expect, can be even more stressful to handle. Understanding the common issues that are often faced by landlords and knowing how to deal with them is an excellent way to make renting out your property a less stressful experience. Keep reading to find out more:

Missed Rent Payments

One of the biggest headaches any landlord can face is not getting paid. Having tenants in place who cannot afford to pay rent, or simply choose not to, is a major issue and can have a devastating impact on your finances. Without rent payments being made regularly, it can send your cashflow spiraling and you may struggle to keep up with any mortgages or loans you have taken out to finance the property. Missed rent payments can also seriously impact your personal finances, especially if rent payments are your main source of income.

Knowing that you will receive your rental income in full and on time each month brings significant peace of mind. But figuring out how to make this happen can feel impossible. Figuring out the best way to collect rent is an age-old problem. Setting up digital rent payments so that you can collect rent online offers an ideal solution. Collecting rent online means that you won’t need to constantly chase your tenants for payments, or deal with excuses, such as paper rent checks being lost in the mail. Instead, you will see precisely when a payment has been made, with no need to continually chase your tenants for late or missed payments.

Not Carrying Out Regular Inspections

Finding tenants for your new property is always a relief, as it means that you will soon start to make money from it. Your tenants will likely sign a rental agreement for six months or a year. This is great news, but it’s vital to schedule property inspections periodically during the rental term. Inspections provide the reassurance that your property is being looked after and your rules are being respected by your tenants.

Failing to Maintain the Property

Purchasing real estate to rent out to tenants is a significant investment. A lot of your cash will likely be tied up in the properties that you own. Over time, you’re probably hoping that the property will grow in value to provide you with a healthy nest egg for the future. However, these hopes can only become a reality if you take care of your property. 

When you’re not living in the property yourself, it can be easy to forget about the importance of maintenance. When you’re not there to spot the signs of deterioration, or to see that repairs are needed, you may discover that the property starts to look neglected pretty quickly.

Making a point of arranging to carry out property maintenance tasks yourself, or employing a professional to do it for you, is essential if you want the property to retain its value and remain habitable. 

Creating a maintenance schedule to follow throughout the year is a helpful reminder of the seasonal tasks that need to be performed. This includes jobs such as clearing fallen leaves and debris from the gutters in the fall. These tasks may seem small, but they will go a long way toward keeping your property in the best condition.

Improper Screening Checks

When you purchase a property to rent out, you probably want to start seeing a return on your investment as soon as possible. Having the property left empty means that you’re not gaining any financial benefits from it. So, your top priority will be to find tenants to fill it as soon as possible. If you buy a property in an area with a strong rental market, you should find it pretty easy to find eager tenants looking for a property just like yours. However, if the rental market is slow, or you’re desperate to find tenants quickly, it can be tempting to hand the keys over to the first prospective tenant who comes your way.

Having someone move into your property so that you can get your hands on your first rental payment is a great feeling. But if they’re not a good tenant this choice can cost your dearly. Carrying out proper screening checks and vetting your prospective tenants before you agree for them to live in your property is a must. Getting bad tenants out of your property once they have signed a rental agreement can be challenging. So, it’s much better to choose the best tenants from the start.

There are many ways you can take action and ensure that renting out your property is a smooth and stress-free process. Being vigilant by screening your tenants and ensuring you always receive your rental payments on time is essential. In addition, it’s also crucial to ensure that your property is well looked after, with regular maintenance work carried out. This will help you to protect your investment in the long-term while ensuring you make a healthy profit from it right now.