Becoming a landlord can be a lucrative career. On the flip side however, it can cause more headaches and hassles than you can handle. You only have to look at your weekly TV guide to find programmes about slum landlords or nightmare neighbours. But are the enough to put you off becoming a landlord? Landlord tenant disputes are common. Below we will look at some the most common problems, and how employing a property manager means you don’t have to deal with them.
Landlord Tenant Disputes : Problem Tenants
Vetting tenants is a tricky business, and one best left to the experts. Someone on the surface may seem like the perfect tenant. But they could be the start of a nightmare scenario. Problems with tenants cover a wide area of complaints including late rental, noise, anti-social behaviour, and illegal subletting of rooms. These are just a few of the most common complaints. There are plenty more.
So, what do you do if your tenant fails to pay their rent and you fall behind on your mortgage? Panic would most likely be the answer. If you choose the services of a property manager however, rental collection and chasing arrears will not be your responsibility. Depending on the agreement between you and your manager, your rent will generally be guaranteed regardless of if the tenant pays or not. When disputes of this type get to a head, eviction can be the only solution. Eviction is a costly business, but one that you will not need to worry about if you have a property manager.
Maintenance and Repairs
As a landlord it is your duty to keep up to date with repairs and maintenance. Many tenants however will not complain until things get out of hand. This can result in costly repairs that could have been avoided if preventative maintenance had been carried out. Disputes often arise over who should pay for repairs. Tenants who purposely damage your property should be made to pay for repairs. But how can you prove this if you have not seen or visited the property for months before the complaint was made?
This is another problem you can forget about when you use a management team. Maintenance issues will be dealt for you and on your behalf. You will provide a budget to your maintenance team, and you will be updated on costs as and when repairs are carried out.
Who to Rent To
Who you rent your property to will depend a lot on the area it is situated in. If you buy cheap rental properties, you can expect to rent to less desirable tenants. There is a lot of stigma attached to low income families. Many behave in the stereotypical way that people talk about. Many however are honest and hardworking people who will look after your property better than many middle class families. It is impossible to know who to rent to, unless you have a crystal ball. References can be faked and even good tenants can change into bad ones, when family circumstances change. To avoid disputes and stress you do not need, use a property manager for your rental portfolio. The money spent will guarantee you peace of mind and the rental income from your property that you deserve.