Having a rental property can be rewarding, but it’s not for everyone. There are many issues you need to be prepared for in order to run a profitable business. To get you ready for all the things that could disrupt your business, here we’ll show you seven common issues you may face as a landlord and how you can avoid them.
Late Payments
One late payment is not usually an issue, but it can become a real hassle if you have to continually follow up with tenants to collect their rent. If you don’t have set rules or a detailed background check in place to review their financial situation and talk with a past landlord, you’re putting yourself at risk.
Problem Tenants
Everyone looks good on paper until they move in. Do you know what to do if your new tenant is a disrupter? Many landlords fail to address issues from the get-go, but if you don’t nip these in the bud immediately, you could end up with a problem tenant on your hands. All it takes is one rotten egg to set you back thousands of dollars in purposeful damages and legal fees.
Tax Issues
You have to stay extremely organized as a landlord. Otherwise, you can expect to deal with a mountain of paperwork at the end of the year. This can place you under a great deal of stress and also lead to mistakes on your tax forms which can cost you thousands in penalties.
Evictions
Unfortunately, evicting a renter isn’t always avoidable, even with a screening process in place. If you happen to find out that your tenant is conducting illegal activity in your space, or they’ve threatened another tenant, or they’ve stopped paying their rent altogether, you’re going to have to be prepared to start the eviction process.
Unexpected Turn Over
Even when you’re a good landlord to your tenant, it can be difficult retaining a tenant for an extended period of time. And losing a tenant means you have to spend countless hours and dollars on advertising, property tours, and running background checks in order to find a new renter — all while your property sits vacant and you’re losing money.
Illegal Subletting
With rental platforms on the rise like Airbnb and VRBO, landlords now need to be on guard. Many property owners are discovering tenants renting out their space to others for a huge profit at their expense. Not only is this a breach of contract and liability problem if an accident was to happen, but in many cities, including Ottawa, Airbnb is becoming more and more regulated and taxed.
Legal Issues
It can be time-consuming and overwhelming trying to keep up with all the city, provincial, and federal laws that apply to landlords. But it is crucial for you to keep up to date to avoid a legal issue between you and a problem tenant.
To avoid experiencing these common issues you’ll face as a landlord, you need a property management company who can take care of it for you. They can provide the experience and know-how to find a reliable, long-term tenant, handle all the paperwork, take over your maintenance responsibilities, ensure you’re compliant with all of the applicable laws, and prevent you from becoming a victim to an illegal sublet.
Contact us at Sleepwell Property Management today, and we’ll help you understand how our professional expertise can benefit you.
