Many people believe the common misconception that being a landlord is easy. You don’t just sit around and collect rent money as it pours in each month. It can be a lot of work, especially if you rent out an older place.
Here are a few of the major challenges that you might face as a landlord:
Paying Too Much For the Property
Most people either choose to rent out their homes when they are moving elsewhere or buying a small home or duplex to rent out in order to make real estate money. If you decide to rent out your current home, you probably still have a mortgage to pay on it. The same thing goes for a newly-purchased home or duplex.
You have to charge a certain amount every month to cover the cost of your mortgage, though sometimes that payment is too high to get anything significant from your tenant.
Having an Empty Unit
You need to have extra money in the bank for any time that your unit remains empty. If you are remodeling your unit or looking for someone to sign a lease, even a month or two without someone paying rent can be detrimental.
Having Bad Tenants
Not all tenants are going to take care of the home like it is their own. The tenants might be clean, though that does not necessarily mean that they will get upset over a hole in the wall or a broken light fixture. Of course, this is why it is so important to ask for a security deposit, though having to deal with these types of things on a regular basis can be quite frustrating and translate to a lot of your time.
Having Sub-Par Insurance
Many landlords cut back on insurance costs in order to save money. However, this can be a HUGE mistake. Beyond having insurance for the home, you might want to consider getting rent guarantee insurance and standard landlord insurance. These types of insurance help with things like late rent and personal injury cases.
The more insurance you have, the better off you will be as time goes on. Yes, it might cost a bit more each month, though not having to deal with the consequences when they arise makes it more than justifiable.
Dealing With Phone Calls
Many tenants never call, though some like to call about each and every little thing that happens to them in the home. There might be days where your tenants drown you in phone calls with multiple things to complain about. Days with seemingly never-ending phone calls are sometimes unavoidable and can really take a toll.
Why Sell Your Home
Being a landlord is challenging, to say the least. You must find the right place for the right price, as well as find the right tenants to make it all worthwhile. You could easily choose the wrong tenants and have to deal with uphill battles for the whole year.
Instead, give us a call here at National Cash Offer and see how easy it is to get your old home off your hands so that you can start fresh.