Friday, February 21, 2014
Leasing out a property may seem fairly easy, but the leasing process can sometimes become a challenge, particularly if things don’t go as planned. One of the worst mistakes a landlord can make is expecting everything to go smoothly. Keeping an open mind and expecting the worst will help you run your rental property better. Get tips...
Not all tenants pay on time, this is one of the challenges that landlords face. Trying to strike a balance between being a considerate landlord and collecting profits from your rental property is tough. A good tenant with whom you can achieve both things is ideal, but not always the case. For extreme cases, you may have to deal with evicting a bad tenant. You may also face not getting any of the overdue rent. Protect yourself from potential unpleasant situations by running a thorough background check on a prospective client, then draw up a clear rental agreement.
Leasing property involves performing regular repairs and maintenance on your property to keep it safe and livable. Wear and tear from tenant use is normal and should be expected, however, you should also be prepared for severe property damage, whether it's from natural causes or your tenant’s fault. To keep making profits on your property, consider regular maintenance expenses and unexpected repair costs in your asking rental rate.
Expecting to have a paying tenant all the time is not realistic because there may be periods of vacancy without a renter. You should consider this in your investment, particularly if you've bought the property to rent it out. This may become a difficult situation if you acquired the property through a bank loan and can’t keep up with the loan payments as a result.