Landlord Tenant

The Landlord Business - Avoiding Its Common Pitfalls

Posted on October 3rd, 2008 | by John Glenn |

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Renting a property by owners, the landlord business can be either great, decayed, or anything in between. So, is attaining success and satisfaction in the business simply a matter of circumstance that is away from the control of landlord? To answer such question, let us discuss some of the most common drawbacks for landlords and the various ways to avoid them.
1. Problems with Tenants

It is a most common troublesome situation experienced by most of the landlords. Without a doubt, tenant related troubles root the majority of needless chaos and strain in a landlord’s life.

The good news is that landlords can avoid the bulk of this “self-inflicted torture” by properly screening tenant applicants before renting to them. In the landlord business, spending the necessary time in starting with applicants is by far the most vital task that a landlord can perform.

2. Problems with the Building

A rental property that is in a state of bad shape due to a lack of maintenance can present troubles that look like a set of dominoes. As soon as one problem is repaired, another one develops. As a result, the property owner is left with a big dent in his or her cash flow and possibly has some tenants that have been provoked by the disturbances and disruptions caused by the repair work.

In order to evade buying a property and being harmed by unpredicted repairs, it is suggested to hire a qualified property inspector to inspect it before buying. A quality property inspection report will explain the state of several sections of the property such as plumbing, electrical, etc that require a repair. In this fashion, both your cash flow and tenants will benefit from it.

3. Problems with Contractors / Vendors

Believe it or not, if the right contractor has not been employed to work on your investment property may cause just as much misery as renting to a bad tenant. It is truly important to choose the right contractor as there are numerous bad contractors out doing business who injure the reputation of the home remodeling industry.

So, how can you, as a landlord, avoid these high priced frauds from working on your rental property? You will have to exercise caution and screen them in similar fashion like you would screen a tenant applicant. Ask for references from previous customers, check with some building inspectors who have inspected their work in the past, and ask for proof of insurance coverage and licenses. These precautions will surely diminish your chances to get occupied with a wrong contractor.

Tags: landlord and tenants, Landlord Business



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