The Top 6 Problems Landlords Face and How to Fix Them

Being a landlord, you are certainly no stranger to taking on many responsibilities at once. In fact, you probably know that if you do not handle each one properly, you typically find yourself just a little stressed out, facing financial trouble, or dealing with a lawsuit. So, it is crucial for you to prevent potential issues and fix any that might arise. What are those issues? Well, at Innovative Property Management, a property management company in Annapolis, Maryland, we have put together the top 6 problems landlords face and how to fix them. This is a quick overview guide to help you with some of the most common issues landlords deal with.

The top 6 problems landlords face and how to fix them:

1. High Turnover Rates

High tenant turnover can kill your cash flow fast. Losing a tenant requires you to spend time and money advertising, showing, running background checks, and doing the necessary administrative work to get one tenant out and another one in. On top of that, you aren’t making any money while the property is empty.

2. Late Rent Payments

Constantly dealing with tenants who do not pay on time can be very frustrating, especially if it is a common occurrence. Also, waiting on payment could be financially draining for landlords.

3. Legal Troubles

Learning all the laws that apply to landlords might seem like an overwhelming task, but you must do it to avoid legal trouble. Take the time to study the federal and state laws that apply to you. Also, don’t forget to look up your local laws as well.

4. Staying Organized

Landlords deal with lots of paperwork. With that it can be easy for it to become disorganized. This can not only become stressful but also lead to missing documents if any legal trouble should arise.

5. Frequent Evictions

An eviction is a stressful and costly process. Doing all you can to prevent the blog to your finances as well as mental well-being is vital.

6. Excessive Stress Over Property Management Responsibilities

Property management is a critical part of being a landlord, but it certainly is not easy. You must screen tenants, collect rent, deal with any complaints, keep your tenants happy and much more. This can all weigh very heavily on landlords.

Reducing Tenant Turnover

There are a few key items you can keep in mind to help reduce the tenant turnover on your property.

• Understanding why they don’t renew: If a tenant decides not to renew, provide them with a way to give you feedback. Either that or have a conversation asking what kept them from renewing. Sometimes it could be a price increase or even just a sudden life change. You won’t know unless you ask, though.
• Make Regular Improvements: If a big issue is constant maintenance on a property then this can make a tenant not want to stick around. Perhaps it is time to give a property that big renovation that is due.
• Review Rental Increases Carefully: If you are going to increase the rental payment then there has to be a reason for the increase. Do research on what the local market dictates and provide that as part of the breakdown when presenting it to your tenant.
• Attract Tenants Who Are a Good Fit: Having the right tenant from the start will be better in the long run. Make sure to do thorough screening on any potential tenants before allowing them to rent.

Best Ways to Deal with Late Payments

There a few ways to help deal with any issues for late payments

• Strictly enforce rent collection rules
• Follow up with tenants as many times as necessary to collect rent
• Screen tenants so you can choose those who are likely to pay on time each month

Navigating Legal Troubles

Take the time to study federal, state and even local laws as it applies to you. It might seem like a lot to take in but in the long run it will help to prevent a lot of hassle. If you are struggling consider joining a local landlord association so you can network to get the support you need to get through everything.

Becoming More Organized

There are five quick ways to help you become better organized as a landlord.

1. Document everything: Keep track of everything from documents to text messages. The more proof you have of your relationship with the tenant the better if any legal troubles should happen.
2. Keep Each Property File Separate: It is easy for paperwork for multiple properties to get mixed up so keeping a specific area for each separate property you manage is vital.
3. Digital is the Way to Go: The more areas you can digitally store things the better. With cloud saving you won’t lose any documents and you can avoid the clutter of storing old documents constantly.
4. Organize Yourself with a Calendar: Organizing yourself and your schedule is just as important as keeping your files organized. Having a set schedule through a calendar is important.
5. Hire a Professional: Having a professional property management team by your side can be crucial, especially when things become overwhelming. They can also help with marketing, maintenance and even accounting services.

Screening Tenants Effectively

A few quick tips on how to find an ideal tenant for your property.

• Decide What Matters to You: Choosing the ideal criteria for a tenant is where you should always start.
• Utilize Technology for Background Checks: You have the power of the internet to assist with looking into any possible tenants.
• Treat Every Applicant the Same: Stick to the same criteria for every applicant no matter what.
• A Few Extra Phone Calls are Worth It: Take the time to call and speak with any references as well as former landlords.
• Pay Attention to Your Instincts: When all else fails, listen to your gut. If something seems wrong, then it just might not be the right fit for you.

Avoid Frequent Evictions

There are a few proactive ways you can avoid what could be deemed as a “bad tenant.”

• Improve Tenant Screening
• Implement Payment Plans
• Build Better Landlord-Tenant Relationships

Thanks for taking the time to look over the top 6 problems landlords face and how to fix them.

About Innovative Properties

Innovative Properties is a property management company in Anne Arundel County focused on helping residential, commercial, & HOA property clients. With over 30 years of experience in property management and leasing, we can help you rent, sell, or buy your next property in Anne Arundel County.