Renting out property may be an incredibly lucrative decision for money-savvy investors who are looking to create a constant additional income stream, although, there are several unpleasant situations that can drastically degrade the decision.
While finding pleasant tenants is not impossible, many homeowners often find themselves searching for property buyers to be free from the rental nightmare that is often a reality. In the event that you find yourself confronted with any of the following nightmare rental situations, WeBuyCLE.com suggests that you contact the professionals.
Every landlord’s biggest fear is that their tenants are destroying the property without them being aware and when considering that a bulk of small damages can add up in repair costs, the fear is justified completely.
One way to avoid these costs from building up is to include a clause in the rental contract that will allow you to have the property assessed every so often to prevent ongoing damages. You should also ensure that your property rental contract includes a non-negotiable deposit which would cover at least one month’s rent as you will be able to conduct repairs using these funds legally.
Tenants That Don’t Pay
Unfortunately, countless landlord’s find themselves stuck with tenants that simply don’t pay and while sending bills and insisting on interest may be legal, the best way to dissolve this unpleasant and unfortunate situation is to relieve yourself of the property as you would still need to cover property taxes, electricity and utility bills raked up by the property regardless of whether or not your tenants are actually paying.
When it comes to tenants that don’t pay, the best course of action is to prevent the issue rather than have to find a cure, which means you should be taking essential steps to screen tenants and determine whether or not they would be able to afford the property. Tenants who make ongoing partial payments can often be even more challenging to get rid of as you would have to follow legal channels to obtain the right to evict them. Unfortunately, legally evicting tenants can be an extremely lengthy and time-consuming process.
It takes an average of 4-6 months before the search for a new tenant begins. After a new tenant is found, the landlord must go through a re-rental process to evict the tenant. There are numerous steps involved in the re-rental process and it is very important to carefully review and understand the tenants’ rights in order to provide the best options for your tenants and avoid legal liability. Additionally, a successful tenant re-renting process requires that all required legal documents have been provided and fully executed.
Currently, it’s not business as usual as the coronavirus menace is making people find themselves in unfamiliar financial quagmires forcing them to cut on expenses drastically. A situation that has become a matter of life and death. This has made landlords stare at staggering rent defaults at rates never seen globally. This means the lifestyle of landlords which change dramatically and they have to option but adjust to the hard harsh reality. his means they could be hit with uncovered health and medical expenses.
They will have to free up income from other sources besides rental income in order to settle their kids’ education. If you are running out of options on how to survive the COVID-19 quagmire now it’s time to consider selling your property and free up much-needed income which will help secure your family’s financial future. Just think about it. Time is running out!
Dealing With repairs and other tenant costs
Regardless of what location you choose, you should plan to save money in other areas. It’s easy to forget that repair costs—gas, oil, landscaping, swimming pool—can eat up about 15 percent of the household budget. More than half of American households spend more than 30 percent of their monthly income on these costs. By that measure, $29,000 in savings would have earned homeowners almost $26,500 over the course of their 40. Think of this as lost income. Time to think of disposing of the property and avoid such hustles.
Tenants Who Disappear
While finding yourself stuck with a tenant who never pays is likely worse than finding yourself with an empty property for no reason, the situation can still be a costly one. If your tenant disappears without notice, you will be able to seek them legally to fulfil contractual money owed whether they reside on your property or not. Keeping an eye out for outstanding rent and rent deposit refunds, local procedures for bringing missing tenants back to the city, and having money set aside in an emergency fund to cover unexpected fines or court fees could be your best tools to avoid expensive problems with an empty tenant. But do you really want to deal with such?
However, such tenants are usually quite hard to find and you may be better off cutting your losses and moving on. In the event that you find yourself constantly in this situation, it may be the location and condition of your property that is appealing to a certain class of lawless tenants and therefore, selling your property and investing in another one in a different location would be wise.