5 Landlord disasters and how to avoid them
The difference between a stable, reliable income from an investment property and an economic disaster can turn on one poor decision.
Here are five pointers for happy landlords:
- Be sure to vet tenants properly
Take up work and personal references and contact them to verify tenants’ background. Check out their social media profiles. Treat this process in a similar way to if you were offering them a job.
- Fix any repairs promptly
Tenants expect quick action on any issues such as plumbing or electrics. If they feel this is being neglected, they are more likely to mistreat the property themselves.
- Keep good communications with tenants
Without this communication, you run a higher risk of a breakdown in relations and the threat of non-payment, or (worse still) having to evict a tenant. This can take up to a year and involve high legal costs.
- Take out insurance
Issues with flood damage, tenant damage (or by their pets), void periods or general buildings maintenance can all be covered by the right insurance. In the UK, look for an ARLA-accredited insurer.
- Guard against void periods
Having an empty rental property can soon wipe out its profit margin. The most common reason is that the rental price has been set too high, so make sure that it is roughly in line with market values in your location and for the type of property you own.