Being a new landlord, managing tenants is not as easy as it sounds since there are a lot of responsibilities on your head. Although few properties can be managed on your own, you will in no time see an escalation of costs and other tenant problems because of the added properties.
Since you might have to face a lot of issues, it is better to know things ahead. So below are the 11 issues which a new landlord will definitely face.
Top 11 Issues Faced by New Landlords:
- Screening of the tenants: This is one of the most common tenant problems faced which can be resolved by checking the credit score and past rental history while you are checking the tenant’s application. Since you will be verifying the tenant through the screening, you will get to know about the tenant’s intent, his/her quality, financial setbacks they might suffer, and habit of paying rent.
- Writing of lease: It is important that the lease written by you should be original and it should not be scripted, i.e. it should not be rewritten from the internet since this can result in a disaster. It is important to write the lease well by taking a considerable amount of time. All the lease provisions should be included in a legible legal language where there are zero loopholes.
- Delayed payments: Having a long-term tenant does not imply that your problems will stop since you might face a tenant problem where the tenants might make late payments. This can be the most frustrating part and even more if it happens frequently. In order to improve your rental collection tactics, you should maintain constant communication with your tenants and should also follow up with them in order to collect the rent on time. You should enforce strict rules regarding rent collection as well.
- Not being organized: It is imperative that landlords will have to deal with a lot of paperwork. If you are not mindful of it from the beginning, you can become disorganized. This can not only result in daily stress but can also result in legal trouble if you tend to lose any important documents. In order to stay organized, you can create a logical filing system, keep digital copies at hand and avoid hoarding paperwork on desks.
- Legal issues: It might seem like an overwhelming notion to learn all of the laws which apply to the landlords but it must be done mandatorily in order to avoid any sort of legal trouble. The landlord should take time to study the state law and local law.
- Managing all the tasks independently: Getting on the wheel of bookkeeping and maintenance can be a daunting task, even more so when you have many properties to handle. It is for this reason that you should lay your hands on the best property management software like Owner’s Town.
- Responding late to the tenants: If your tenants make a complaint or report, make sure to quickly respond to them. It makes them feel taken for granted if you don’t respond to them quickly. So make sure to answer their queries since negligence can cost expensive repairs in the future.
- Violation of lease by the tenant: There are times when the tenant fails to abide by the terms of the lease signed by him/her. For example, if there has been a policy to not bring pets into the premises, and if he/she does so, he/she is violating the terms. With this regard, the landlord will provide a written warning of the violation, will make a reference of the section of the lease that has been violated, and will further give a deadline to fix the tenant problem. If the tenant does not comply with the terms of the lease then he/she should be evicted.
- Recurring evictions: When there is a constant eviction done by you as a landlord, it can not only be costly but also stressful. Rather than facing the blow of constant evictions, you can make sure to create effective payment plans, build better relationships with the tenants and being careful with the screening process. When talking about creating an impactful payment plan, the landlord should craft the best plan so that the tenants can pay the rent where this is more beneficial than dealing with expensive evictions and vacant property. The rent amount should not be lowered when the payment plan is being made since it will influence other tenants to request for discounted rent rate.
- Higher rate of tenant turnover: There can be a hurdle in the cash flow since there is high tenant turnover. Since losing tenants implies that you will have to spend money and time on effective advertising, showing your property, doing paperwork and screening the tenants, this can result in financial trouble since your empty property will not generate any income.
In order to make sure that this doesn’t happen, keep a fair rent, be a good landlord and prioritize the maintenance of the property since no one would desire to live in a messy property. The risk of tenant turnover can also be reduced by opting for those tenants who are likely to stay for a longer period of time.
- Overpriced rent amount: You should not overprice the rent since this can result in having a hard time to search for the tenants. This will result in constant vacancies which will make you lose the money. You can consider the average market prices where you should set the rent rate that does not have to be too low. It should be reasonable enough so that new tenants can be attracted. It is a common notion that knowing the correct art of price adjustment is the most common tenant problems faced by the landlord.
Thus, by knowing all the above tenant problems and preparing for it can help the landlords impeccably.
But the real talk is that it is tough for a single person to manage all. So it is best to hire a property management company like Owner’s Town where your property management issues will be tended in the best way possible.