When you are a new landlord what risks and pitfalls you can face possibly?
Owning a rental Property and doing rental business is great as it can provide you with all the money you need to spend your life in ease and it can even provide you with sufficient money when you are about to retire. But like every other business there are learning curves in this as well and this is where new landlords get exposed to the risk. Below are given some of the common risks which a new landlord may face along with the ways to beat them.
Units taking too long to get ready
If your units are taking too long to be ready for the tenants then this can be a bad news. You sure don’t want to be broke before your business even got started. Repairs and maintenance is necessary but it should not take too long otherwise you will keep investing without getting any returns on the investment. Even without any home loan you still have to pay certain taxes.
Unit is vacant for a long time
It can happen that you haven’t found any suitable tenant for your property and it is still lying Vacant. Vacant property means loss of income and a vacant property can even become exposed to vandalism and yet it needs maintenance and repairs from time to time however small or large they may be.
Take the help of technology to boost your marketing strategy so that more applicants can reach you. Experienced landlords make full use of technology and they often make waiting lists in order to avoid vacant properties.
Verify the rent yourself
Never believe what somebody says about the rent. It is best to study the market yourself and make smart decision when it comes to asking the rent. Study properties similar to yours. If as similar property is asking for certain amount and has been vacant for few months then market is not ready to pay the price. Therefore, you have to price accordingly. You cannot ask for any amount in the name of rent.
Over maintaining the property
Maintain your property but over maintenance can make you bankrupt. Make your unit looks good but don’t overdo to attract a $1500 tenant when no one in the neighborhood is paying more than $800.
Watch out for these pitfalls and the learning curve will be very smooth.
To know more how SimplifyEm Property Management Software can help you, visit this link: http://www.simplifyem.com/property-management-software