Investing in rental property will provide a steady revenue source while building wealth, but at the same time, it gives rise to several problems. Today we will discuss some common issues.
One of the most common landlord problems is the nonpayment of rent. Even with a lease, some tenants will refuse to pay. The simple solution to this problem is the issuance of a “3 Day Notice to Pay or Vacate”, If they still don’t pay, it’s time to handle things in a legal way. A strict lease and tenant screening process can help eliminate this common problem.
Lease violations are another common problem. Unauthorized occupants or pets, smoking in the property, causing damage to the unit or violating rules of the HOA are common. To resolve these issues, a landlord needs to post a “Notice of Non-Compliance”. If they don’t correct the violation by the deadline stated in the notice, you can file for eviction.
In our experience we have seen property owners get too friendly with the tenants. This is a common trap that many landlords fall into, becoming too close with the tenant and becoming friends. Unfortunately, maintaining a business relationship with friends and family as tenants is a serious handicap for the landlord and rarely ever ends well for the property owner.
Even with properties we manage, where owners have hired us to shield them from the tenant, many tenants make it their mission to try and bypass us so they can try to get in direct contact with the owners in hopes of becoming friendly with them. It has always been a valuable rule of thumb to not do business with friends and family. If you hire a property management firm to shield you from the tenant and the liability do not have direct contact with the tenants, even if they try to contact you first or befriend you on social media.
The next biggest mistake is using a substandard lease. Most leases, on the market are generic, offering more “tenant protection” than “landlord protection”. The fact of the matter is that becoming a landlord can be tough if you don’t handle things correctly. There will be times that you will need to deal with certain headaches.
If you have any questions about how to fix some of these common landlord problems, please contact us at InvestPro Properties and speak to one of our rental property experts.