How far do you live from your rental property & how frequently can you visit the property on a regular basis? This is the first question you should ask yourself when renting your property. It can be a double aged sword. Live to close and you can find yourself at the beck & call of your tenant. Possibly getting stressed out at how often they do or don’t pull their curtains! Live to far away and you could be blissfully unaware (until the ever helpful neighbour up the road gets word to you via the most public means possible) that your tenant has let their grass grow to jungle length
How do you deal with stress? Do you consider yourself to be a tolerant person? This is a tough one. We all like to think of ourselves as level-headed and even-keeled, but at the end of the day it takes a special kind of person to deal with the ups and downs of property management. Behind the seemingly simple task of collecting rent every month lie a number of unpredictable problems can push people to their limits. Ask yourself how you would react in the unfortunate event that tenants:
•Get in fights with other tenants or neighbours/ Have unruly children
•Have domestic disputes
•Conduct illegal business in the dwelling
•Carry on all night parties and loud music
•Try to sneak extra people or animals into the home
•Decide to sue you
•Trash the property
Are you currently overwhelmed with your properties? Managing properties can very quickly become overwhelming, even for experiences investors. There is always something that demands attention. Perhaps you are renting out a property for a family member as a favour. Very quickly your good deed can turn into a pain in the head. Trying to manage your own home, life, work, and children is a balancing act without adding a demanding tenant into the mix.
How much experience do you have with maintenance & repairs? If you can’t do it yourself, who ya gonna call? Unfortunately the Ghost Busters can’t help you out of this one! Finding an experienced, reliable and insured handyman/contractor isn’t an easy task. If you have no experience in this area it can be a minefield. Maintenance and repairs are a significant component of a Property Management Company with experienced, designated staff dealing solely with this area. Have you that much free time to allocate for this reason?
Are you willing to be on call 24/7/365? It’s important to answer this question honestly. Work, Christmas, Birthdays, Special occasions even your Saturday morning lie in can all be interrupted by a tenant who has an emergency. While these don’t happen all the time can you handle been contacted at the early hours of the morning to stop someone’s overflowing toilet?
Are you willing to confront tenants about late payments? And if need be evict them from the property? This is the side of the business no one likes. But it is a business and if a tenant has built up a substantial rent arrears this needs to be addressed. Landlords don’t like to feel like the bad guy, but delayed payments need to be dealt with immediately. Often a gentle reminder is enough but sometimes it could lead to further action being required which must be dealt with in an appropriate fashion.
How well do you understand the laws governing Land Lording? Many extensive laws surround tenants and landlords exist. Ensuring the property is run in accordance with the law is critical in both preventing lawsuits and shielding yourself from liability if you are sued. Familiarity with contracts is also very important as your rental agreement is the only binding agreement between you and the tenant.