 Think the hard part is over now that you have bought the right investment property and found a tenant? Actually, the real struggle can start right now! A lot of landlords come across an array of problems once they put their property up for rent, and these issues may range from not receiving rent regularly to inadequate insurance.
Here are some of the things that may go downhill if you don’t plan ahead and our suggestions on how to overcome these obstacles!
1.    The Crucial Figure: Deciding the Rent
Setting the rent too high or too low can both backfire on you in the long run. A hefty rent may make it difficult for you to find tenants and keeping it too low can cause you financial issues and limited income.
To learn how much is too much and where you need to draw the line, research the market trends in detail. Keep an eye on listings of properties similar to yours in the same area or appoint a property manager who can guide you in setting the optimal range of rent for your property.
2.    Keeping it Regular
Avoid arrears as much as you can by making it clear to the tenant that the rent has to be paid in advance at all times.Monitor payments tightly and send notices straight away for nonpayment. This will show the tenant that there are no exceptions. It’s also worth noting that most insurers will not cover you for loss of rent if notices are not served when they should be. This reason can also be given to the tenant as further justification as to why you are just following procedure.
3.    Overlooking Maintenance Issues
The more you neglect inspection and property maintenance, the bigger these expenses will become in the future. Plus, you may also become legally liable for any injuries caused to the tenant if you don’t keep it maintained properly. Fixing small issues in the beginning will also save you from hefty renovation costs in the future and keep your tenant happy with living there. When issues build up, tenants can feel their only solution is to move property and it will cost you far more to find a new tenant plus you will have to fix the things up to find a quality one anyway.
4.    Insurance Woes
Getting landlord insurance is your best chance to protect yourself against risks and keep your mind at ease even if the tenant causes damage to the property. Consult a professional property manager for more details and guidance in this regard so that you ultimately choose a plan that pays you back without causing any dents in your budget.
5.    Not Getting a Professional Involved
A lot of people shy away from the concept of hiring a property manager to save themselves a portion of the rent, but in reality, having a professional on board can actually increase your ROI. Its also worth remembering that their fees are tax deductible too.
The benefits of hiring a property manager outweigh the expenses – they will handle everything from rent collection to maintenance and also help you with tenant screening and the necessary legislation processes in case a rift rises between you and the tenant. Plus, they have a detailed knowledge of the current market trends and rental rates and will therefore help you better in devising rent that is nether too high nor too low for the size, stature and location of your property.
