Problems in Property: Issues to Overcome as a Landlord
If you’re looking for a low risk way to earn passive income then there are few better ways than becoming a property landlord. You have money landing in your account every month with little to no work needing to be done to earn it- however it’s not always plain sailing. Here are a few things to bear in mind.
Knowing whether to accept children and/ or pets
Lots of landlords will rule out tenants with children and/ or pets due to the damage that they can cause. And it’s true, you could end up with ruined carpets, damage to walls and doors and unhappy neighbours due to noise should you accept pets or children. However, renting to a family has many benefits. They’re much more likely to settle as they tend to move around less than professional couples, meaning you’re more likely to have long term tenants.
This means less messing around finding new tenants every six months which can be expensive and result in months in between where you’re not getting any rent. With pet owners, many can be perfectly responsible and so it makes no sense to tar everyone with the same brush. You could ask to meet the pet beforehand so you have an idea about their size and temperament. You could ask for a higher security deposit to cover any potential damage. Lots of renters have pets and by excluding these people you could be missing out on good tenants.
Verifying tenants identities
It’s important you know exactly who your tenants are. If you end up needing to take legal action against them for example then their identity is crucial, plus you may want to check things like criminal history so you know exactly who you’re letting your property out to. You can verify your customers with Jumio and other ID companies, so be sure to run background checks before letting them sign on the dotted line.
Properties taking a long time to let
In most places, the rental market is strong and landlords don’t tend to have too many problems renting out their properties. However, if you are struggling and it’s taking longer than you’d hope to get a tenant then there are things you can do. First of all, improve the home- since most tenants won’t want to pay for things like replacement carpets they have to live with what’s down. And if what’s down looks awful then it could be enough to put them off.
You don’t have to spend a fortune, often new flooring and a coat of neutral paint will create a nice blank canvas that tenants can make into a home. If the place is full of old fashioned furniture, clear this out and offer it as unfurnished rather than furnished. In most cases (unless you’re renting to students) people will prefer their own items. The price is another factor, be sure that you’re not charging way over the odds based on similar properties nearby and be aware of the kind of renters that are likely to be in the area. Most working families will have a limit of what they’re able to afford, go above this and you’re at risk of pricing everyone out.