Being a landlord is a very rewarding job, however, like all other jobs, there are some issues you will face along the way. Here are some problems you may face on your journey to be a landlord.
#1 Starting up Capital
- Yes, being a landlord will bring you in a lot of profits, but you also need that start up money. In order to buy property for your tenants to live in, you need to ensure that you have the money to start you up. Many landlord overlook the actual cost of this and believe they only have to pay the price of the property, but they are yet to realise the amount of money that will go into remodeling the property as needs be.
When buying your first property to let out, make sure you are aware of all the work that needs to be done to that property and that you also have the funds to fix them up and make sure that it is suitable for the tenants.
#2 Collecting the rent
- There is a risk that your tenants are not all going to be perfect. You need to have in mind that you are going to have tenants that pay correctly and on time, and that you are also going to have tenants that are not very good and making their payments. You need to make sure that you have the strength in your personality to put a firm word in and make sure you get your rent money.
Also, you need to make sure that you have a strong mind that is able to consider the eviction process if they are not able to pay the money. There are some people with a personality too forgiving that they will let the tenants walk all over them. You need to ensure you will not have that mentality as you need to make your money.
#3 Problem tenants
- Not paying rent is your first problem that will come to mind, however there are more qualities that contribute to being a problem tenant. These sorts of people are one of the biggest issues you will face as a landlord.
If you have done your research, or know anybody who is a landlord, you may have heard the 'horror stories' of the way that some of the tenants are.
Project X style parties being thrown their, drug abuse, animals leaving terrible messes, floorboards ripped up, toilets broken, spray painted walls. There is so much at risk when having tenants as you do not truly know what they are capable of. Make sure to try your best to judge the types of characters you are allowing to live in your properties.
#4 Not able to let
- You may have purchased a property you think is very much desirable, but will it be taken? A problem that you may face, is being unable to get tenants to want to live in your property. This can be a big issue you can face as you will be paying bills, whilst not making any money. A great way to over come this is to use a good letting agent for that area. These will help market your property at a cost, but they can also offer other great facilities to help you along the way.
#5 Staying Organised
- With being a landlord, you will have to deal with a lot of paperwork. This will mean that you will need to keep yourself organised. If you are not very good with organisation, that can become a problem for you, especially with the more houses you acquire. It is a good idea that you have a section dedicated in your house for your landlord role where you can store all of you paperwork.
Need any help with your landlord issues? We are a leading letting agent in Birmingham City Centre with expert agents who are always happy to help! Don't hesitate to get in touch!
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