Steps To Take The Stress Out Of Being A Landlord/Landlady
More and more people are renting properties rather than buying. High living costs and a lack of affordable housing have triggered a surge in the demand for rental units. If you own properties, renting them out can be lucrative. Buy-to-let real estate investing may seem like an appealing option, but it’s not always a walk in the park. In this guide, we’ll outline some effective steps to take the stress out of being a landlord or landlady.
Find the right tenants
Finding the right tenants is one of the best ways to minimise stress, reduce risks and enjoy peace of mind as a rental property owner. Studies show that the number of renters in Canada has hit an all-time high, with over 30% of people now renting their homes. For landlords and landladies, this is good news in terms of finances and potential profits, but it can make choosing tenants more challenging. If you receive multiple applications, it can be hard to narrow down the options and make decisions.
There are various ways to increase your chances of finding reliable, trustworthy tenants. These include conducting interviews, carrying out background checks and requesting references from previous landlords. You can also simplify the process by stipulating what you’re looking for in adverts and property descriptions. Some owners may be reluctant to accept pets or families with young children, for example. Being more selective can help to prevent you from receiving applications from people who don’t meet the criteria.
Intuition is often a powerful tool when it comes to deciding who to offer your home to, especially if you’ve already been through the process of doing checks. It’s helpful to take the time to meet potential tenants and learn more about them.
Utilise innovative time-saving online tools and services
Life as a rental unit owner doesn’t have to be complex, stressful or hectic. There are many tools and services you can use to save time and effort and streamline processes. From finding a tenant and using tools to create a lease agreement for your property to managing your rental income and advertising vacancies, you can take advantage of a broad spectrum of online tools and platforms and professional services. If you own a property and you’re not already using apps, online tools and templates, management systems, and software designed for landlords and landladies, it’s beneficial to do some research, compare products and tools, and get recommendations from fellow property owners.
Consider hiring a management agency
Managing a property is one of the most challenging aspects of buying and running a rental unit. Whether you’re searching for a new tenant, carrying out emergency repairs, or trying to negotiate with a disgruntled renter, taking care of a rental unit can be time-consuming and stressful. If you’re eager to enjoy the perks with less stress and free up valuable time, it’s worth considering hiring a property management company. Depending on the agency you choose and the service packages available, you can pass some or all of the responsibility to your agency team.
Examples of tasks property managers complete on behalf of owners include marketing the property, going through tenant applications, meeting prospective tenants, drawing up rental agreements, explaining how agreements work, handing over the keys and doing an inventory and inspection. Once the tenant has moved in, the team will field calls from them, keep up with inspections and take care of repairs and upkeep. Companies will also handle payments and oversee the processes involved in handing in notice, moving out, settling bills and cleaning.
The exact arrangement will depend on the agency you choose and the services included in your agreement. It’s important to research agencies carefully, get recommendations, read reviews and compare prices and services before you decide who to hire.
Communicate effectively with your tenants
Positive relationships with tenants can save a huge amount of stress for property owners. From the outset, it’s beneficial to communicate effectively and try to establish a strong relationship with your tenants. This doesn’t necessarily mean going to visit all the time or leaving a welcome hamper, but simple steps can make a big difference.
The first step to building a good relationship is to create a clear, detailed rental agreement, which ensures the tenant understands their responsibilities and your expectations. The next step is to introduce yourself and ensure your tenants know how to get hold of you if you’re not using a property management agency. It’s also beneficial to make sure you respond to messages and queries promptly and to keep up with basic maintenance and upkeep. If your property needs repairs, try to remedy issues as quickly as possible. If you don’t respond to messages or it takes ages to fix broken appliances or get the heating working again, this will impact your relationship. Your tenants may not trust you and they may be less inclined to fulfil their side of the agreement.
Keep a firm grip on your finances
Managing your money can be stressful when you own a rental property. This type of investment can be profitable, and often, it’s easy to budget and organise your finances, but this is not always the case. You may have a steady income, but there’s always a risk of unexpected costs. If appliances break, your home needs repairs, or you encounter problems, such as storm damage, for example, you may find yourself in a tricky situation. Costs can spiral, especially if you don’t have comprehensive insurance or an emergency fund. It’s also essential to be aware of the costs involved in buy-to-let investing in terms of taxes, legal fees and management fees.
Keeping a firm grip on your finances is the best way to reduce risks and prevent money worries. You can use budgeting tools, tax calculators and online tools to track payments and invoices, but it’s also beneficial to seek expert advice. If you don’t have a background in finance, you have a hectic schedule, or you’re overwhelmed by information about paying taxes, for example, get professional help. You can do this on an ad hoc basis or consider hiring an accountant. Keeping up with basic maintenance and tackling repair jobs swiftly can also help you save money in the long term.
There are advantages to being a rental property owner, but there’s no doubt that being a landlord or landlady can be stressful at times. Key steps to minimise stress include finding the right tenants, utilising innovative time-saving tools and services, exploring management agency services, communicating effectively with your tenants and keeping a firm grip on your finances.
