6 Major Problems (and Their Solutions) Associated With Renting Out Properties

There are many benefits to renting out a property. It may be that you’re just starting on the property rental ladder or looking for extra income. There are, however, some major problems with renting out properties. To combat them, with property management services it’s important to be aware of them and their solutions.

1. Finding Good Tenants

When it comes to renting out your property, you want to make sure you rent it out to great tenants. Tenants who pay their rent on time and treat your property with respect. That’s why it’s important to advertise your property in places that your ideal tenant will come across. Don’t be too concerned with pricing costs as the savings won’t make up for having nightmare tenants. Advertising effectively is an investment in finding an amazing tenant. A bad tenant will bring you all kinds of financial and mental distress.

Another way to prevent bad tenants is to carry out adequate credit checks and ask for references. You can request a landlord reference but if they haven’t rented before, you can request a reference from their employer. Make use of technology for background checks, this can give you a wide range of background checks that you may have even been unaware of.

Don’t be tempted to choose a tenant quickly for financial reasons or because you don’t want to deal with the hassle. Even a small delay might be better in the long run if you are able to find amazing tenants. It will make your life a lot easier and prevent several issues. Give weight to your gut instinct, sometimes we just know intuitively if someone is right or not.

2. Do Your Due Diligence

You must make sure to carry out your due diligence. This includes informing your mortgage lender, if relevant, that your property will be rented out. You also need to do your due diligence on any potential tenants.

Make sure you have the correct insurance for your property. You can take out an insurance policy that can cover your loss of income if there is an issue with the tenants and you stop receiving rent for the property And if you are thinking about renting out your mobile home, be sure to find out more about Mobile home lot rent.

If you don’t do your due diligence, you might find that you run into all kinds of issues with your insurance and your tenants. This could leave you in a financially difficult position.

3. High Turnover

Having a high tenant turnover rate means that you can lose a lot of money. You will have to spend money advertising or running background checks when finding new tenants. There are also costs associated with making residential rental properties suitable for occupancy or having to adjust to a tenant’s needs. Additionally, when your property is empty, it is not bringing in any money. Your rental property could be causing a big financial loss to you if this is the case.

To avoid this, you want to ensure that you are being a good landlord. Deal with maintenance requests as quickly as you can and develop a solid relationship with your tenants if need be. Allow them to be able to communicate with you openly and clearly. They are much less likely to want to move if they know that you deal with their issues and concerns quickly.

Constant issues can be a cause of frustration for your tenants, so make sure the property is in good condition before renting it out. If it isn’t and your tenants keep running into problems, this could lead to a high tenant turnover rate.

4. Organization

When renting out a property, there is a lot of paperwork involved. It can be easy to let things go off track and before you know it, you’ve misplaced several important documents. To stay organized, ensure that you document everything regarding the property. You want to have both digital and hard copies if possible, just in case. You should be able to access these documents easily in case a dispute or problem arises.

If you have multiple properties, separate all of your documents so nothing gets mixed up. Come up with a system that works for you and makes it easy for you to access whatever you need at any time.

If you have to deal with inspections, viewings, and meetings on a regular basis, make sure you have your days and weeks organized. Missing even commitment can lead to further issues down the line for you.

5. Maintenance

Maintaining a property can be a huge hassle and can cause issues. If the tenants are particularly awkward or if the property appears to be in need of a lot of repairs, you might want to have a local inspector attend to the property. They will be able to figure out the issues that currently exist as well as any future potential problems. This will help you keep on top of everything and prevent the issues from getting bigger and bigger. This can then lead to a lot of money being lost due to the repairs and work needed.

6. Legal Issues

You need to be able to understand your legal responsibilities when renting out a property. This will prevent any potential disputes or issues. You need to make sure that the property is safe to rent and keep all documentation that certifies this safe. You need to have the electricity and gas checked out and certified to be safe. Make sure you check your local regulations and laws to ensure you are keeping yourself protected from any potential issues.

If you can prove you have done what is required of you, you are in a much better position than if you were to cut corners.

It’s important that you take inventory of the property and its condition at the beginning of the tenancy. Without this, you cannot prove that the tenants have damaged the property and deduct it from the deposit. This is for your own protection and prevents you from getting into disputes with your tenants. Even if it is evident they have damaged the property, without proof, you will not be able to prove this.

There are a few major issues associated with renting out a property. You want to be informed and educated enough so that you avoid making mistakes that could cost you big time. Take the time to learn your legal obligations to ensure you fulfill them adequately. This can save you from legal problems which cause a lot of mental and financial stress.

Being a landlord can be incredibly lucrative, but this dream can crash quickly if you do not do your due diligence, and carry out the procedures. Being cautious and thoughtful is often worth it and can prevent years of hassle with unruly tenants or legal issues.