Landlords face many challenges that people fail to realize. If you’re thinking about becoming a landlord, keep the following in mind as the hardest aspects of being a landlord.
Turnovers: Where 90% of the Labor & Costs Lie
Typically, one would walk through the unit with the outgoing tenant to see if any damage was caused. Then, that damage is taken out of their security deposit and you have to send them a detailed invoice, breaking down all security deposit deductions.
After the damage is determined, then comes property updates followed by advertising the vacant unit. Then open houses, showing the unit, collecting rental applications and screening tenants. Lastly, you collect the security deposit and initial rent and sign a lease agreement.
Chasing Down Nonpaying Tenants
Nobody wants to chase somebody down for their money. Sending notices, calling them, cajoling, bribing, threatening, and eventually filing in court again. The way to avoid this process is to do aggressive tenant screening. At Penzone Property Management, we do the screening for you and take that off your hands. We also handle all compliance issues.
High-Maintenance & High-Impact Tenants
Some tenants can be overwhelming; bugging their neighbors, you, and maybe treating the property badly. They can be disrespectful and can slip through your screening. Avoid them at all costs as a landlord.
Managing Contractors, Repairs, & Maintenance
Rental properties often come with maintenance costs that new landlords underestimate. Every component of a home will need replacing at some point or another. Managing contractors can be one of the hardest parts about being a landlord. PPM takes care of these issues with Preventative Maintenance Planning. We inspect and plan for maintenance, rather than reacting to emergency maintenance, therefore saving owners money.
Given the difficulties landlords face, many of them sell their leased properties and give up. Hiring a property management company like Penzone Property Management can alleviate these stresses and allow you to receive an income without the hassle.