There’s a reason why so many people become landlords. Buying an investment property and renting it out can offer many financial advantages. It’s a steady stream of income, and seen by many financial experts as one of the smartest long term investments out there.
However, despite its many advantages, being a landlord comes with an equal amount of challenges. From managing your tenants, to handling repairs, it’s far from being a “hands-off” job.
If you’re thinking about becoming a landlord, or you’ve recently just become one, here are some of the challenges you should prepare yourself for.
One of the most important aspects of being a landlord is making sure that the property is in working condition. Landlords are responsible for addressing repairs, filing claims, and handling any necessary upgrades. For this reason, many landlords with busy schedules or multiple properties hand off these responsibilities to a third party. Because if a busy landlord fails to responsibly maintain a rental, it can lead to significant legal repercussions, not to mention nasty disputes with tenants.
Managing Difficult Tenants
As much as we might like to believe that we found the “perfect” tenant, sometimes it doesn’t work out this way. Sometimes landlords have to chase after tenants to receive rent, and may even have to find themselves faced with forcing an eviction. This is why it’s so important to carefully screen tenants before making your final choice.
Many new landlords are in a rush to find someone to rent their property as quickly as possible, and as such rush into the decision. Despite how pressed you may be to start receiving rent, it’s important that you take your time and find the perfect fit for your property.
Complying With Regulations
As a landlord, there are plenty of regulations that you need to comply with. From property taxes, to meeting building standards, it’s important that you’re not only familiar with all of these regulations and that you comply. Failing to do so doesn’t just lead to potential fines, but you could even find yourself in trouble with the law. It’s important to note that regulations may vary depending on where you are and the type of property you have, so make sure that you do your homework for what’s expected of you in your particular location!
Conflict Resolution Amongst Tenants
Despite how well you may get along with your tenants, this doesn’t always guarantee that your tenants will get along amongst themselves. Landlords are no strangers to conflicts amongst tenants, which can be nothing short of a headache.
From noise complaints, to disputes over shared community space, it’s important that you prepare yourself for not only resolving these conflicts, but being fair and communicative. In some cases you may even require legal assistance if things escalate past a certain point.