3 Common Issues Faced By Property Owners Affecting Their Rental Business
The rental business operates on a rather simple to understand business model. You, as the landlord, rent out a space, for an agreed period of time, and for an agreed amount of money to a tenant. The tenant takes control of the space and signs an agreement with you.
It sounds simple, but things can get complicated, causing many landlords to have challenges making a profit.
Here are 3 common issues faced by property owners affecting their rental business.
1. Inability to Collect Rent on Time
In business, time is money, and if you cannot do things timely, you are wasting money. Even successful landlords have a difficult time collecting their rents on time. A major part of this is because of poor screening of tenants. Good tenants pay on time, and those who are late tend to do it consistently.
Landlords should conduct thorough interviews of tenants and ask for references and then call those references. If anything seems suspicious or not good, you should ask the tenant for an explanation. If the person seems dodgy, you will likely have problems with the person, and one of the problems could be chronically late rent payments.
If you continue to have issues with the tenant, hire a property management firm to handle rent collection. There will be someone in charge who would go about collecting payments on due dates, informing tenants that they must have their payments ready on time. Property management companies usually impose a penalty or late fee, which is calculated as a percentage of the entire amount outstanding.
2. Inability to find Tenants
The key to making money as a landlord is to keep your property full of tenants at all times. Accomplishing this requires a combination of things: good prices, good service, nice accommodations, and fair treatment in disputes. The combination of these things should get you really good word of mouth and keep your place full. If you are off the beaten path or are missing some of these things you will likely have to do some marketing.
Before you begin marketing however, go online and see what people are saying about your property or other properties near your area. This could give you insight into what you need to repair or make better to attract more long-term tenants.
If you find this hard to do, it’s time to find a property manager. A Property Manager that has been in the industry for a long time, has seen thousands of tenant applications. This will help them dig into facts about the potential tenants quicker and identify red flags. If you allow a Property Manager to handle the your property, you are also avoiding rental scams that are directed at property owners.
3. Inability to Evict Tenants
The main problem with bad tenants is that it can be quite difficult to make them leave your property. Most landlords will agree that this is one of the most difficult parts of being a landlord. By the time you are at this point, every conceivable option has been exhausted, and the only thing left is to get them out of your place. This requires the police getting involved and will surely cause a scene. Although it may be difficult to accept, it is a part of your responsibilities. So toughen up and get rid of deadbeat tenants.
Being a landlord, like any other job, is difficult. But if you focus on providing a good service to your tenants and act fairly, it can be a financially rewarding experience.
How can we help?
Whether you are a landlord looking for someone to manage your property or a management company owned by the leaseholders wishing to appoint a manager to manage their properties, we can put you in touch with our Property Managers who specialise in residential property management.
Our Property Managers are regulated, adhere to Rules of Conduct and have Complaints handling procedures in place.
For more information regarding our Property Management service, please contact us. We will try our best to reply as soon as possible!
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