Leasing a property is no easy task.
Landlords have to manage numerous properties and it is not simply just about receiving rental revenue at the end of each month. With monthly income comes plenty of hard-work.
Along the way, there are bound to be events that might upset your smooth journey as a landlord and this article will discuss some of the drawbacks that one can experience when being a landlord.
Every person is unique in this world and likewise, tenants are of various character and mannerisms. Some tenants may be nice, while others can be down-right cruel and unfriendly.
It would be a constant challenge to meet their every need and be obliged to solve any of their problems no matter how asinine-sounding they may be.
Also, it isn’t advisable to argue with your tenants as this may result in them turning rouge. All that they can lose is their monetary deposit, whereas your entire property is at stake.
Even though you may have been an excellent landlord, it is not promised that an upset tenant will honour their part of the contract by faithfully paying rental. It is not practical to take legal action against them either.
Having To Remain Contactable
Leasing your property out means tenants can call you any time on any day to ask for help – and normally they have the right to do so, being the ones contributing revenue to landlords.
One solution for this is to hire a manager for your properties, otherwise, expect to be called upon literally any-time – during your free time, on your vacation etc.
Cash Flow Issues
Normally, landlords would pay off their mortgage loans with the revenue they receive from monthly rental. This builds stability of your cash flows. However, there can be times when your cash flow is shaken.
For instance, tenants facing financial difficulties can interfere with rental collection and more considerable problems such as leaking pipes or broken house appliances can cause more cash flow problems.
Thus, it is financially wise to reserve an amount of cash for such unexpected events. If you are fortunate enough, the unspent money can be contributed to your next investment. The best prevention for any problem is to ‘save up for rainy days’
Being a landlord, you are endowed with plenty of responsibilities and in paper, are liable for numerous things. There are times when you encounter problems that are not of your responsibility, but since it pertains to your property, you are obliged to resolve that problem.
Most tenants are normal people who reside peacefully in their homes.
However, there are bound to be certain tenants that will find fault with you for the smallest of incidences and put you liable for their own problems.
It is best to protect yourself against such inconveniences and liabilities by being well-informed of your own responsibilities as a landlord by contract and ensuring that you are not easily hit with such minor troubles.