The pitfalls of managing your own property as a private landlord
Many choose to use a property management service, however, a number of landlords believe they can successfully manage their rental property themselves, before running into problems they didn’t expect. We will explore some of the common problems associated with being a private landlord.
1. 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 responses, 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 might expose their unsavoury rental history.
2. 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, or fail to keep living areas in good condition – 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 become evident, leaving the landlord to fix the damage and deal with a massive financial loss.
3. Private Landlords may delay enforcing missed or overdue rent payments.
If a tenant falls behind in the rent, private landlords may opt to 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 corrective action was taken in a timely manner. This can also prejudice landlord insurance claims if the legal process is compromised.
4. Private Landlords may become too emotionally involved.
Taking legal 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, property managers can always act in the best interests of the property owner.
Becoming emotionally involved can make your experience as a private landlord a bitter one if a bad tenant takes advantage of your ‘good will’ and leaves you with a financial loss, or when disputes occur and you feel compelled to make compromises in order to maintain friendship or goodwill.
Are you running into issues as a private landlord and need a dependable professional to help you? Our team at Uno Property Management Specialists have the experience and knowledge to rectify disputes, look after your property, and ensure your rental income is secure. Chat to us today about how we can help.