Renting out apartments is not a bed of roses for landlords. It is definitely a good source of revenue, but brings along various headaches created by tenants. Here are top 11 such issues that landlords face and ways to tackle them.
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Maintaining a property is the biggest challenge for any landlord. You will have to take care of the overall cleanliness, regular maintenance, wear and tear and rent collection. However, you may have to tackle other issues as well, including nuisance complaints by neighbours, maybe non-payment of rent and also ensuring tenants are happy with the property.
Make a lease that is rock-solid and ensure that you and the tenant adhere to each and every point mentioned. Visit your property periodically to check it. Request your neighbours to inform in case of any problem and don’t hesitate a second to call the law enforcement if there are issues that you can’t handle.
It gets difficult to maintain a healthy environment in the neighborhood if the tenants disrupt peace in locality by behaviours, like not maintaining law and order, over-speeding, being extremely noisy due to late-night parties or domestic problems and illegally parked vehicles.
It is best to clearly mention things you don’t want in your house in the lease itself. This will ensure that such a situation never arises and if it does, first give the tenant verbal warning and then resort to written warnings. If that too doesn’t do the trick, speak to your lawyer about evicting your tenant. He will guide you best how to do it without getting into a legal mess.
Many times, some tenants are very sincere as far as depositing payment goes for initial couple of months. However, soon they stop paying the rent on time. They will have a million reasons for this. Such tenants are indeed a pain in neck for landlords. Then there are tenants who would just not vacate the house even after several reminders. The third and the most painful category of tenants would neither vacate the house nor pay rent.
Be sure of whom you are handing over your beloved property. Do a background check on the person before renting out the property. Also get to know your state’s eviction procedures before renting a property. Moreover, it is important to terminate lease in case of non payment of rent. Send a notice and let your tenant know you mean business.
Many tenants give stepmotherly treatment to their rented accommodation. For them it is a temporary house and they treat it with no respect. Many landlords complain of damage to the property. Always collect security deposit from your tenant. Check in the neighborhood what other landlords are charging for similar properties. The security deposit can be used for damage caused but not for regular wear and tear.
A lot happens in a landlord’s life after a tenant leaves. The landlord has to clean up the property, touch up the property, and find a new tenant. It is best to advertise a property couple of months before the tenancy ends. You can bring realtors on board to help you find a good tenant quickly. As far as cleaning and repair of the house goes, it is best to take professional help.
Making a lease can be a significant point because it is a legal document that contains all important concerns of the landlord and tenant. It should be ironclad and suit your purpose. Get your lawyer to draft the lease and ensure your tenant also gets it approved by his or her lawyer. This way everything will be covered and there will be no room for ambiguities.
It is often a tough task for landlords to obtain relevant permits. Check the state laws to find out the permits or registrations required. Educate yourself on your state’s landlord-tenant laws and rights. You can take help of your attorney or join a landlord association or real estate investor association for better understanding of state laws.
Landlords may find insuring their properties a tiresome job. One should also insure against the lawsuits and loss in rental income. But many landlords are not aware of it. Check out different insurance providers to get a policy that best suits your needs and fits into your budget. In order to cover rent in your policy, use the Fair Rental Income Protection Act. Moreover, having a proper insurance cover is a must. Excess liabilities and the entire portfolio of properties can be covered under umbrella insurance.
Another pain point for landlords is maintenance of funds and deposits. It is important to keep a track of security deposits, rent amount and other finances related to the property. You should always have contingency money to take care of unexpected repairs. The best way to keep a track of the same is to open a separate bank account with security deposit option.
Rent is a form of income that is taxable. It is important to keep a track of the real value of your property and its depreciation value. You also need to keep meticulous record of how much you are spending on the upkeep of the property. An accountant or property management software can be of great help in this situation. They will enable you to keep an eye on your income and expenditure.
Being a landlord can be hectic. You are on-call round the clock. It can take a toll on your personal life. Involve your spouse in all decision-making and ensure your tenants either text or email you about their issues. This will allow you to spend more time with your family and prioritize matters based on urgency.
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