Whether you have become a landlord out of necessity or have chosen to purchase properties intended to rent out, owning rental properties does not come without its own set of challenges.
While the economic opportunities may be exciting, managing rental properties can become overwhelming for owners who may live out of the area or have other full-time work responsibilities. Like any other business, proper management of a rental property requires time, commitment, and dedication.
Understanding that there will be challenges that come with owning rental properties is vital in helping you head them off before they become problems. Identifying these areas where pitfalls can quickly arise helps to create a profitable and less stressful experience.
Unpaid Rental Payments
One of the most common areas in which landlords experience challenges is dealing with tenants that do not pay their rent. This challenge is part of the nature of rental properties, and unfortunately, there is no way to eliminate it completely. Even the most financially sound tenants can experience difficult times, causing them to get behind on their payments or simply stop paying altogether.
Proper Precautionary Prospective Tenant Screening
You can lower the risk of renting to unstable tenants by taking some precautions during the initial screening process. Careful screening of each prospective tenant can immediately weed out those who have a history of defaulting on financial obligations. Making sure to contact references, employers, and past property managers can assist you in gathering a better picture of who you are screening.
Adding clauses into the lease agreement that specify additional charges and fees that the tenant will be responsible for in the event rent is not paid on time is also helpful in protecting your interests as it provides a clear deterrence to getting behind.
Keeping A Tenant In Your Home
It is also important that you keep the screening process managed quickly so that your home does not stay vacant for long periods of time. The idea is to get great prospective tenants to want to move into your home, screen them effectively, and finally sign a lease agreement to keep cash flow from experiencing too much lull.
Dealing With Property Damage
Maintaining a rental home that is attractive to good tenants is important to increasing your investment return. Unfortunately, rental properties can also fall victim to property damage. Of course, these damages may be weather-related, age-related, or tenant-related, but all of it must be dealt with quickly to maintain the property’s value and keep worsening conditions at bay.
Property Managers Can Make Life Simpler
Property managers can be lifesavers for people who need someone to manage their rental home needs effectively and efficiently. At Dillingham & Toone Real Estate, we treat your rental property as if it were our own, giving you expert service that provides you peace of mind and less hassle.
Let us help your rental property work for you without you having to do any work. Call Dillingham & Toone Real Estate today and find out how easy owning rental property should be.