Investing in St Peters rental properties is an effective way to build wealth. Even though this is your first experience as a landlord, you probably already know that rental property owners usually have to deal with problems. Things like emergency repairs, property damage, and late rental payments are just part of the market. While good preparation and tenant screening can help reduce some issues, some problems are inevitable. Knowing what the five most common issues that a new landlord faces can help you be prepared to handle them with ease.
1. Payment Issues
In some situations, your tenants may pay their rent late or not at all. You need to include late fees detailed in your lease documents, but it can be a hassle to charge and then collect on those fees. The loss of income from late or missing rent payments can also quickly turn your St Peters rental property into a serious cash drain. This is especially true because the eviction process, should it be necessary, can take anywhere from one to three months. The surest way to avoid such problems is to have a very detailed tenant screening process. It would be best to do a background check, credit check, and reference check on every applicant. An alternative way to encourage timely rental payments is to arrange an online payment method. Tenants enjoy the convenience of paying their rent and other bills online, and funds are often available to you faster as well.
As a St Peters property owner, your income relies on occupancy. If you found that your rental property is sitting empty for months at a time, that can easily become a very expensive problem. You may also find yourself making poor decisions or renting to unqualified tenants in your willingness to balance your cash flows. If finding tenants has become a challenge, it’s recommended to double-check everything from your rental rate to your advertising. Your rental rate needs to be based on a detailed assessment of your local market. If your rate is too high, that could lead to longer vacancies. Moreover, you need to make sure that your advertising is reaching your target renter demographic. Presently, it is essential to have your rental property advertised online and on social media, not to mention any other appropriate locations.
3. High Turnover
High turnover can be an equally expensive problem. Each time you need to find and screen a new tenant, you’re spending money instead of earning profits. If you’re starting as a new landlord and your tenants keep leaving, maybe you need to do a little investigating. While high turnover could be due to outside forces like the local market or economy, in other cases, your tenants might leave for reasons a little closer to home. If you haven’t already, make sure that your rental property is in good condition and that necessary repairs and maintenance are being done regularly. It’s also a great option to step up your communication with your tenants. Frequent positive interactions can have a big impact on tenant retention and help encourage your tenants to tell you the real reason they left. By that, you can address the problem directly.
4. Legal Compliance
As a landlord, you need to take care to operate your rental property in compliance with both federal and local laws. Sometimes, this can be tough. You may accidentally violate tenant-landlord laws without even realizing it. To avoid getting yourself into legal trouble, make sure that you need a thorough understanding of the federal Fair Housing Act and local regulations as well. Even one mistake could lead to an expensive, yet preventable, legal mess.
5. Property Maintenance
Keeping in touch on property maintenance can be both time-consuming and hard to manage. This is because property maintenance demands both routine tasks and individual repair items. If you decide to do all of your property maintenance yourself, you must have a system in place or risk losing your tenant – or worse. If you’re just getting started, take some time to plan out a property maintenance schedule for the entire year. If necessary, gain more knowledge of how to carry out each property maintenance task as thoroughly but as efficiently as possible. If you’re feeling overwhelmed, consider hiring a property management company to perform the responsibilities for you. Due to their relationships with local service providers, a professional management company regularly complete both routine maintenance and repairs for far less than you can. In any scenario, decent property maintenance can help you avoid larger, more expensive repairs down the road.
Even if these five problems are the most common ones, there are still many other issues that may arise that a new landlord may encounter. Hiring a property management company like Real Property Management Three Bridges can help you eliminate all of these issues as well as increase your return on investment. You can contact us online to learn more. However, if you do plan on managing your properties on your own, the most key thing to remember is to use the best practices of the industry and to keep learning as long as you can about how to succeed as a St Peters rental property investor. In this manner, your landlord skills will keep going to improve the longer you own your properties.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.