Property investment is a attractive way to diversify your investment portfolio, but being a landlord can be a messy, emotional and risky job. Luckily, there are ways to reap the financial benefits of investment property ownership without having to endure the trials of being a landlord. You just need to let a property management company handle the dirty work.
Here are five of the worst things about being a landlord and how a property management company can help:
1. Handling the hoarding
In many cases, between tenants, you have to paint the unit and do some repairs. In other cases, you need to replace the carpet, and in extreme cases, you have to deal with an apartment full of horded "treasures," from piles of diapers to fridges full of rotten food.
If you hire a property management company, you don't have to get your hands dirty. Between tenants, these professionals clean, repair and prepare the property for the new tenants. In addition, to ensure the state of your property never gets out of control, they also can schedule regular checks of the unit while it is occupied.
2. Managing money
Without rent, your investment property is virtually worthless, but unfortunately, tenants are often juggling lots of financial responsibilities, and they may forget to pay the rent once in awhile. When that happens, you are responsible for calling the tenant or knocking on their door.
That's time consuming, and it can often be an emotional process. You may want to be lenient on your tenant and give him or her more time. However, exceptions can set a precedent, and before you know it, you may be receiving late or missed rent payments on a regular basis.
Property management companies don't let emotions into the equation. They give your tenants a range of ways to pay the rent (cash, cheque, direct debit), and they have late fees and penalties in place to deter late payments. That saves you the task of being the "mean" landlord, but it also ensures you always get the money you need.
3. Terminating tenancies
If a tenant refuses to pay the rent or otherwise breaks the lease, it may be necessary to evict them. Pushing someone out of their home can be hard for many landlords, and it can be a time-consuming experience full of legal hoops to jump through.
Property management companies try to avoid evictions. They screen tenants carefully, and in many cases, they work with quality tenants to help them catch up with delinquent payments. However, in cases where terminating the tenancy is essential, property management companies know what to do. They understand the process, and they have lawyers who ensure everything is done correctly.
4. Limiting legal issues
Unfortunately, evictions aren't the only legal issues landlords have to face. They also have to ensure they have a lease agreement that is legal. They need to follow local laws regarding rent increases, and they may have to disclose certain things about the property to their tenants.
Failure to satisfy your legal duties as a landlord can result in fines, liability suits or a number of other issues. When you work with a property management company, they limit your exposure to legal issues. They have the right forms and the legal expertise. That ensures your property and your business is compliant with all relevant laws and regulations.
5. Fielding phone calls
Finally, one of the worst aspects of being a landlord is that you don't just have to deal with random emergencies in your own home. You also have to deal with complaints and emergencies from your rental properties. That can mean anything from blocked toilets on Thanksgiving, to burst pipes on early winter mornings, to broken furnaces in the middle of the night.
Depending on how many properties you have, these calls can become stressful. Luckily, property companies handle them. They have a process in place for dealing with maintenance emergencies, and you can just relax as they handle it.
To learn more about how a property management company can take the stress out of property ownership, contact one of these companies, such as Rest Easy Property Management, directly.Share