Life seems to be quite amazing when you are a landlord. All you need is to purchase a great investment property, rent it out to the tenants then just sit back and enjoy while the monthly rent payments pile up in your bank account. Unfortunately, it is not as easy as it seems to be. There are always two sides to every coin. One is the amazing part of being a landlord while the other is the frustrating, annoying things a landlord has to go through when they rent out their property. There are a lot of bad tenants out there that can make your life hell. Alas, there is no definite way to avoid bad tenants. But in order to make things a little easier for you, we have listed some of the top tips to avoid as a landlord.
Conduct Screening Process:
One way to slide out bad tenants is to conduct screening process which will help you to identify bad tenants. Get a thorough a background check by examining their employment and rental history, run a credit check and ensure that you have their proper authorization.
One of the most common problems of being a neighbor is when the tenant does not make the monthly rent payments on time. It is okay to let it slide for one or two months as they might be going through a hard time to make ends meet. But if you see that it’s happening every month, you know it’s time to let your foot down.
Always Make Your Tenancy Agreement Clear and Precise:
Most of the time it is seen that nor the landlord or the tenant reads the tenancy agreement thoroughly which later creates a lot of chaos. Even though it is true that ignorance of the law does not make much a difference as the tenancy agreement is still considered a contract. But one should read the entire written agreement, point out if they don’t feel comfortable or agree with any clause and work together to create a mutual agreement. As a landlord, you must know the lease agreement and if needed inquire with your lawyer.
Many landlords believe that insurance policy is just useless. But what they don’t realize is that the landlord insurance policy is like a safety net for them. If there is any kind of unfortunate situation, it will help you out easily and make your situation less painful and less expensive. At times, when your tenant cannot pay the rent on time, you can depend on the insurance policy for the loss of rental income.
Always Meet Face-To-Face With Your Tenant:
If your tenant is having any kind of problem while living in your property, meet your tenant, examine the problem yourself. Often, landlords and tenants get into a dispute on phone or email, where angry words are exchanged and leads to a bad tenant-landlord relationship. Holding a meeting face-to-face will help you both to reach a mutual decision and sort out the problem.