Being a landlord can be very rewarding, offering a financial cushion during retirement or in addition to having another source of income. However, it does come with its challenges that can affect whether things are profitable and stress-free.
If you’re considering becoming a landlord (or you are one already), here are some common challenges and how you can address or prevent them.
Finding reliable tenants
One of the biggest challenges when you’re a landlord is finding a reliable tenant. Looks can often be deceiving, and the people you initially thought would be perfect instead cause noise complaints or refuse to leave.
To try and prevent this, we recommend carrying out extensive background checks before handing over the keys. You should also try to maintain good communication throughout the process and their tenancy, as this can also help to prevent any poor behaviour.
Of course, if you have found good tenants, this can be worth its weight in gold.
Late or non-payment of rent
Should tenants pay you late or refuse to pay you at all, it can affect your cash flow and lead to financial strain. Your costs likely include a mortgage for the property, alongside additional fees like council tax and insurance.
Without your expected income, costs can quickly add up, and you might need to pursue legal action. If this is the case, make sure to hire reputable real estate lawyers to handle your case.
You should also make sure payment terms are clearly stated in the lease and have multiple payment options for convenience. If there are late payments, communicate with your tenants first and try to reach an amicable solution where possible.
Regular property maintenance and repairs
One key challenge landlords face is unexpected issues with the property. The vast majority are your responsibility to fix, and this includes boiler issues, roof damage, broken appliances, blocked drains, and more. Even if the fault is due to the tenant’s negligence, in most cases, you are still required to fix the issue.
To limit damage wherever possible, we recommend communicating with your tenants about how to properly care for the property. You should also take a deposit to encourage better care of the property. You may want to make regular inspections of the property to ensure everything is still in good working order. If you are going to make an inspection, you typically need to give your tenant sufficient notice.
