Many landlords see property investment as a wealth creation strategy. Many choose to use a property management service, however a number of landlords believe they can successfully manage their rental property themselves but more and more private landlords are running into problems they didn’t expect. In the next few weeks we will explore the problems associated with being a private landlord.
Tip One- The Dangers for the Private Landlord
Bad Tenants tend to Avoid Agents! It is often true that a private landlord can place a ‘for rent’ advert in the newspaper and be inundated with response, not realising they could be speaking with tenants who specifically avoid dealing with agents. This tenant type likes to target private landlords knowing full well they will most likely be accepted on face value, with no reference checks or stringent identification checks completed that can expose their unsavoury rental history.
Tip Two- The Dangers for the Private Landlord
Bad Tenants Don’t Like Regular Inspections! Some bad tenants target private landlords because they know that most do not conduct regular inspections. This allows them to conduct illegal activities like drug production which can result in substantial damage to the property. It is only after the tenant has left or has been evicted that the damage and devastation is evident, leaving the landlord to fix the damage and deal with a massive financial loss.
Tip Three- The Dangers for the Private Landlord
Delaying the Rent Arrears Process- If a tenant falls behind in the rent, private landlords can give the tenant lengthy periods of ‘grace’ unknowingly allowing them to get into a financial ‘point of no return’ where they are unable to catch up. When the landlord finally starts to serve legal notices it is too late and results in a much greater loss than if correct action was taken in a timelier manner. This can also prejudice landlord insurance claims if the legal process is compromised.
Tip Four- The Dangers for the Private Landlord
Becoming Emotionally Involved- taking action against a tenant is so much harder when you have become emotionally connected with the tenant. Having a business only relationship is good, but having a ‘no relationship’ status is better by employing an agent, who avoids becoming emotionally involved and treats any situation in a business manner. Becoming emotionally involved can make your landlord experience a bitter one if a bad tenant takes advantage of your ‘good will’ and leaves you with a financial loss.
Many landlords see property investment as a wealth creation strategy. Many choose to use a property management service, however a number of landlords believe they can successfully manage their rental property themselves but more and more private landlords are running into problems they didn’t expect. In the next few weeks we will explore the problems associated with being a private landlord.
