Nightmares You Can Encounter When Renting Out an Income Property

 

The rental world has exploded with people who think it is a great idea to invest in an income property. There are those people who are pros who have multiple properties with minimal issue. Then there are those who have such a hard time with their first income property that they decide to get out of the investment as soon as they can. The truth is that many people think it will be easy to manage a property when it fact they have to be a problem solver. The amount that a property management company takes in percentage out of monthly rent is not as much as many people would think so this is a good option. The following are nightmares you can encounter while you are renting your income property.

Renters Being Destructive
Renters being destructive can be one of the worst things that can happen. With eviction laws being in the renter’s favor in some states it can take up to 3 to 6 months in certain locations to get the renters out of your property. Once the eviction notice has been served you are at risk for the renters really destroying the property. Things like putting diapers down a toilet can end up costing thousands of dollars. The water damage is one thing that will need to be fixed but putting the wrong things down the drain can lead to pipes leaking. Having a handyman and plumber is absolutely essential unless you know what to do if you have a burst water pipe. It is essential to take pictures of the conditions of the apartment before you have damage so you can prove this in a court of law.

A property management company does rental history check to make sure there have been no problems with the renter in the past. In college towns many companies tend to rent to older grad students or female renters as they tend to be much less destructive than undergrad male renters. The management company also has lawyers that  can help in the case of destructive tenants. The lease that they company drafts up will be done in such a way to legally protect the owner of the property.

Rent Late or Missed

Rent being late on a frequent basis or missed can start the eviction process. In the cases that a tenant gets paid on the 3rd instead of the 1st then the rent due date can be modified by a few days. The most important thing that you can do in this case is ask for a proof of employment. Not only this but you will have to ask for the last paystub the person or people have received. Far too many times people have a person who runs a company or works there to tell the apartment owner that they work there. The rent conversations need to be civil as it can cost quite a bit more to hire a lawyer and start the eviction process. If your due diligence has been done the odds of rent being missed should be dramatically decreased.

Problems Finding Tenants
There can be times where you purchase a rental property in hopes of renting it out that simply does not have any interest. This can lead to lost money per month for utilities, electric, and mortgage or taxes. The best way to advertise is to do so online as most people look there to find a new place to live. Craigslist is a favorite for many while real estate sites can be a close 2nd. Working closely with a university can be advantageous as well in the cases of exchange students. This rent will be guaranteed and damage to the apartment can lead in the termination of the student’s education visa. Family members should be avoided at all costs when it comes to renting unless you are renting through a property management company. You invested in the property to make more money and not to cause a rift in the family due to you actually wanting your rent on time.

The process of starting to rent your income property is going to be stressful. Finding a unicorn tenant is possible who is responsible and pays their rent on time. These are tenants you want to lock into long leases as they are perfect for a person managing their own property. If you want to rent out a property with little of the hassle it is probably time to look into property management companies.