You might be really excited about the new rental properties you purchased, but now you are a landlord. Being a landlord is a great way to build long-term revenue, but it is also something that has challenges. As you begin your new business, it is important for you to prepare to face the following three challenges.
Handling Late Payments and Evictions
All landlords experience problems trying to collect all the rent that the tenants owe, and you should expect this problem too. You can hound tenants for their rent and set up rules about it, but there is little you can do to make every tenant pay on time. When tenants fall behind, you have the legal right to pursue evictions. Evicting a person is not an immediate process, though. It requires time, money, and work.
Managing High Turnover Rates
A second challenge you should expect to face is managing high turnover rates. With a rental property, keeping a low turnover rate is essential, but what does this mean? The turnover rate refers to how often tenants move in and out of apartments. The goal is to keep your tenants as long as possible, as this lowers your turnover rate. Each time a tenant moves out, it costs your company money. You have to pay to clean and prepare the unit for the next person who moves in, and you might have an empty unit for a few weeks or months. Vacant units do not generate income.
Keeping Up with the Maintenance and Repairs
One last challenge you face as a landlord is keeping up with all the repairs and maintenance of the units. Focusing on good maintenance leads to quality units. Offering quality units helps you collect higher rental payments. A hard part of this is finding the time and energy to complete all the steps needed. It is also a demanding aspect of rental properties. Repair calls may occur at all times of day and night, and you cannot ignore these calls if they are emergencies.
All three of these challenges are common with landlords, but there is a solution. If you feel overwhelmed with all your responsibilities, hire some out to a property management company. You can keep the landlord title if you hire a company like this, but you will have fewer duties to handle yourself. Call a company today to get a quote for the services you would like help with.