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Did you know accidental landlords are becoming more common? More homeowners are choosing not to sell because the mortgage rates they got in the past are far better than anything that's available today. The result is that many people are keeping properties they had originally planned on selling.
The rise of accidental landlords also means it's getting easier to see the common challenges and how to fix them. Learn more about what these new landlords face in this quick post.
1. Bad Tenant Relations
The most common accidental landlord challenges revolve around their dealings with their first tenants. Bad tenants, in particular, can ruin a person's perspective on property ownership with property damage, late or non-payment, and being generally unhelpful.
You can largely avoid this scenario by implementing a robust tenant screening policy. This will help you identify and choose good tenants based on their track records.
If you already have tenants and things are looking grim, an experienced property management firm can provide effective tenant management strategies. Remember that tenants who violate the lease agreement rules can be evicted for their breach.
2. Issues Related to Maintenance
Fulfilling the landlord's maintenance obligations can cost time and money that not everyone has. However, these count as business expenses when you're a landlord. As such, you can deduct these and other property-related costs from your taxes.
The ability to expense maintenance costs allows you to profit in the medium to long term, even if you have to do repairs now.
3. Legal Complexities
New landlords must get acquainted with many laws relatively quickly, which can be tricky. There are legal standards that govern how landlords manage security deposits, tenant screening, maintenance, inspections, and much more. These laws also flow from local, State, and Federal sources.
Wading through the legal muck and red tape can be exhausting. A new landlord can combat this by outsourcing.
You can outsource functions like tenant screening or rental income accounting to dedicated services. This will ensure that you're 100% compliant with these complex tasks. You can also outsource to full-service property management to have the job done for you in its entirety.
4. Problems With Time Management
There's a good chance that you have a lot on your plate if you become an accidental landlord. Staying organized and using a scheduling app or calendar will work in your favor if you get into the habit immediately. However, consider the outsourcing option if you're constantly behind with your to-do list.
How Property Management Helps Accidental Landlords
Accidental landlords can find it hard to keep their heads above water, but there is help! Tenant screening and property management services can help with tenant relationships (and evictions, if necessary).
Maintenance duties and legal complexities can also overwhelm a landlord. However, you can deduct the financial costs of these services from your taxes. Just be sure to work with real estate accounting experts so that you also save time.
Time management can also be a problem, but you can outsource to ease your burden. At Precision Realty and Management, we can offer the most professional property management in Houston. Contact us today for more real estate tips and a real estate service that puts clients first.
