Investing in Wilsonville rental properties is an incredible way to build wealth. If ever this is your first experience as a landlord, you probably already know that rental property owners also need to deal with problems. Issues like emergency repairs, property damage, and delayed rental payment are all your responsibility. Although good preparation and tenant screening can significantly reduce some issues, difficulties can still arise. Knowing what the five most common issues that a new landlord faces can help you be prepared to handle them with ease.
1. Payment Issues
In other circumstances, your tenants may pay their rent late or not at all. It is necessary to have late fees detailed in your lease documents, yet it can be a hassle to charge and then collect on those fees. The loss of income from late or missing rent payments can easily turn your Wilsonville rental property into a big cash drain. This is especially true because the eviction process, if necessary, can take anywhere from one to three months. The most effective way to avoid such problems is to include a very detailed tenant screening process. Bear in mind to do a background check, credit check, and reference check on every applicant. Another solution to encourage timely rental payments is to build an online payment method. Tenants enjoy the convenience of paying their rent and other bills online, and funds are often available to you faster as well.
As a Wilsonville property owner, your income relies on occupancy. If you recognize that your rental property is sitting empty for months at a time, that can quickly become a very expensive problem. You can also find yourself making poor decisions or renting to unqualified tenants in an effort to balance your cash flows. If finding tenants has become a challenge, it’s recommended to double-check everything from your rental rate to your advertising. Your rental rate should be based on a detailed assessment of your local market. If your rate is too high, that could lead to longer vacancies. Furthermore, it is vital to make sure that your advertising is reaching your target renter demographic. In today’s generation, it is useful to have your rental property advertised online and also on social media, not to mention any other appropriate locations.
3. High Turnover
High turnover can be an equally expensive problem. Whenever you want to find and screen a new tenant, you’re spending money instead of earning profits. If you’re starting as a new landlord and your tenants keep leaving, maybe that is the time to do some investigating. While high turnover could be due to outside forces like the local market or economy, in other cases, your tenants might leave for reasons a little closer to home. If you haven’t already, be sure that your rental property is in good condition and that necessary repairs and maintenance are being done regularly. It’s also suggested to step up your communication with your tenants. Frequent positive interactions can deliver a big impact on tenant retention and help encourage your tenants to tell you the real reason they left. You can even address the problem directly.
4. Legal Compliance
As a landlord, it is important to take care to operate your rental property in compliance with both federal and local laws. At some point, this is stressful. You may accidentally violate tenant-landlord laws without even realizing it. To avoid getting yourself into legal trouble, keep in mind that you need a thorough understanding of the federal Fair Housing Act and local regulations as well. Even one mistake could lead to an expensive, yet preventable, legal mess.
5. Property Maintenance
Wanting to keep your property maintenance updated can be both time-consuming and not easy to manage. That is because property maintenance includes both routine tasks and individual repair items. If you decide to do all of your property maintenance yourself, you must have a system in place or risk losing your tenant – or worse. If you’re just getting started, take some time to plan out a property maintenance schedule for the entire year. If possible, study more about how to carry out each property maintenance task as thoroughly but as efficiently as possible. If you’re feeling overwhelmed, consider hiring a property management company to handle your business. Due to their relationships with local service providers, a professional management company can often complete both routine maintenance and repairs for far less than you can. In any case, great property maintenance can quickly avoid larger, more expensive repairs down the road.
Even though these five problems are the most common ones that a new landlord faces, there may still be problems that may arise. Hiring a property management company such as Real Property Management Assurance can help you eliminate all of these issues as well as increase your return on investment. You can contact us online to learn more. However, if you do plan on managing your properties on your own, the essential thing to remember is to use the best practices of the industry and to keep learning all you can about how to succeed as a Wilsonville rental property investor. Thusly, your landlord skills will continue to improve the longer you own your properties.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.