What Common Problems Do Landlords Face?
Nobody should become a landlord expecting that it’ll be one smooth and joyful ride. While there’s plenty of potential when it comes to earning a living, there can also be frequent complications that make the job more difficult than you’d like it to be. Indeed, the main difference between good landlords and bad landlords is that the good ones know how to actively address the problems as and when they arise. The bad ones just make the problem worse. In this blog, we’ll take a look at some of the common issues, and also offer advice as to the best course of action to remedy the problem.
Refusal to Pay Rent
If you have enough properties, then eventually, you’ll run into a problem that all landlords hate for obvious reasons: the tenants are refusing or unable to pay rent. This can happen for any number of reasons. We’re seeing a sharp increase in people not paying rent because of the coronavirus economic crisis, for instance. When this happens, it’s best to engage with the tenant. If they can’t pay the rent in full, can they pay 80%? Ultimately, it’s best to be understanding — if you’re not, you run the risk of getting no money from the tenant, rather a hefty percentage.
Frequent Tenant Turnover
The best way to maximize your profits as a landlord is to have long-term tenants. If you have to find new tenants all the time, then you’ll have a lot of expenses that you could do without. For example, you may have to professionally clean and restore the house, or pay to advertise the property. And then, of course, there could be a period when you don’t have any tenants at all. To avoid this, do your best to ensure that your tenants don’t want to leave. The best way to do this is to simply be fair and kind. People will have less of a reason to leave if you’ve been good to them.
Wanting to Sell
You’ll have a contract with your tenants, but what if halfway through the length of that contract, you decide that you want to sell? This happens more frequently than you might expect. Contracts, after all, can last for 3 – 5 years, and a lot can change during that time. If you want to sell, then you’ll need to know about selling a house with tenants. This process isn’t as complicated as you might think; the tenants are able to stay in the property, and you’ll be able to get money for the property.
Their Legal Obligations
It’s really important that all landlords are fully up to speed with their legal obligations. There are a lot of laws and provisions in place that you’ll have to follow; working as a landlord is not like working in the wild west! To ensure that you’re fully complicit and don’t have any legal troubles further on down the line, it could be best to talk with a real estate lawyer to ensure everything is legitimate.