Residents
Owners
When you decide to become a landlord and rent out your property, there are some disadvantages to expect. It can be very rewarding and profitable if you know what you’re doing. It also can lead to some disappointments and situations that make you feel at a disadvantage.
When your tenant has to be evicted from non-payment, you’ll be stuck with legal fees to get what was owed to you. When your tenant gets hurt from slipping on ice that you didn’t notice when it was time to salt the sidewalks, you may be liable. Here is a look at what types of disadvantages landlords sometimes face and how to overcome them.
Your Investment can come with Surprise Expenses
Sometimes there are going to be expenses you weren’t expecting. The dishwasher may break, the water heater may need replaced or you may have a plumbing issue that will cause a massive expense if not replaced immediately. These types of issues that sometimes come from being old, a careless tenant or a bad purchase can put you at a disadvantage.
Overcome these issues by having an emergency fund available for unexpected surprise costs. Don’t touch this money account unless you really need and try to add to it every so often to build it up higher. You can consider an emergency credit card as well.
Bad Tenants
Sometimes you just end up with a bad tenant. They can cost you damages, lawsuits and legal fees. Be sure to screen properly to avoid this issue. Treat them as a business relationship by doing background checks, credit checks and ask for references. Deliver notices timely and take legal action when you say you are going to. Be sure your tenants take you seriously. Find ways to please your tenants with quick maintenance turnarounds, special events and cash referral money so that they will want to do their part to be able to stay living in your complex.
Finally, watch for disadvantages when it comes to legal, liability and injury expenses. When an incident occurs on your property, you want to make sure you and your business is protected with insurance. Establish a relationship with a local attorney who understands the laws of tenants and landlords. They will be there when an incident comes up to advise you and protect your assets.
