Many landlords see property investment as part of their retirement strategy or they use ‘property’ as the vehicle to create wealth – many choose to engage a property management service, however a number of landlords believe they can successfully manage their rental property themselves; but here at The Leasing Network we find that more and more private landlords are running into problems they didn’t expect. We explore some common problems associated with being a private landlord.
Tip One – Bad Tenants tend to Avoid Agents!
A bad tenant gravitates towards private landlords, hoping to be accepted because they presented well and spoke favourably at the inspection. Many private landlords do not complete any reference checks let alone identification checks, credit worthiness checks, and tenancy default database checks that can expose their unsavory rental history.
Tip Two – Bad tenants don’t like regular inspections!
Some bad tenants target private landlords because they know a large number do not conduct routine property inspections. No regular inspections allows some tenants to conduct illegal activities that can result in substantial damage to the property. It is only after that tenant has left that the damage is found, and the landlord is left with a damaged property and most likely a financial loss.
Tip Three – Bad tenants delay rent arrears action!
If a tenant falls behind in the rent, private landlords tend to be somewhat flexible and give the tenant lengthy periods of ‘grace’ which can put the tenants in a big financial problem, where they will struggle to catch up the arrears owing.
It is all too late, when the landlord eventually issues the termination notice, and results in a much greater loss than if the correct action was taken a more timely manner. Did you know that not serving a termination notice on time, can also interfere with landlord insurance claims if the legal process is delayed.
At The Leasing Network we have a set of rent arrears procedure in place, ensuring that rent arrears are followed up, minimizing the financial impact of such occurrences. This is reflected in our low rental arrears statistics.
Tip Four – Becoming Emotionally Involved
Taking action against a tenant is much harder when you have become emotionally connected to them. Maintaining a ‘business relationship’ is good, however having a ‘no relationship’ status as the landlord is a much better option. Employ a property manager, who treats any situation in a professional matter; and who avoids becoming emotionally involved.
Becoming emotionally involved can tarnish your experience as a landlord especially if the tenant takes advantage of you and contributes to a financial loss.
At the Leasing Network we have a systematic approach to property management, being kind and friendly, but also maintaining that business relationship to protect your asset.