Being a landlord can produce an attractive amount of extra cash and prove to be a lucrative financial investment. It does, however, carry with it a number of drawbacks and requires a fair amount of time and effort.
Some of the most common problems faced by landlords are identified below, as well as ways to avoid them:
Drawing Quality Tenants:
- Choose tenants through word of mouth from reliable sources, or place an ad in a reputable local paper.
- Conduct thorough reference, security and credit checks.
Dealing with Difficult Tenants
- Know your rights as a landlord and do not be intimidated if you are within your rights to serve them an eviction notice.
- Issue sufficient warnings before serving an eviction.
Difficulties When Tenants Vacate:
- Conduct a thorough check of the property, ensuring it is in rentable condition. This should be done before the tenant vacates. Also check that everything included with the property remains and is intact or replaced if damaged or lost. You may need to initiate a claim on your landlords insurance policy.
- You hold the right to deduct from the tenant’s deposit if the property is not in acceptable condition, or if there are items damaged or missing.
Finding the Time to Manage the Property:
- Choose a rental property that is reasonably close to your home.
- If possible, hire a part-time handyman to take care of regular maintenance and minor repairs.