Hate dealing with tenants and toilets? Being a landlord is challenging, and the chaos of owning a rental property may give you the blues. Being worn down is a sure sign of being a tired landlord.
Your tireless effort to foster excellent landlord-tenant relations, stay organized, and follow good business practices leaves you drained after each day. The strain of being a landlord has already taken its toll on you, and it may even have you considering abandoning this career in search of something less taxing.
If you’re a homeowner with a rental property, the symptoms of tiredness may sound all too familiar. Here are 5 telltale signs that you need to take steps to make your job as a property owner less strenuous.
What Makes Being a Landlord a Tiresome Job
Being a landlord can be rewarding and a proven way to generate passive cash flow. While the payment is passive, managing the property is anything but. Your role as a real estate investor can be tiresome because it takes time, energy, and money.
To successfully own an investment property, you will often have to:
- Buy landlord insurance
- Find and vet tenants
- Get appropriate insurance and protection
- Evict tenants for lease violations
- Clean units after a tenant leaves
- Collect rent payments
- Perform maintenance
- Respond to tenant requests
- Oversee remodels and renovations
- Replace significant components (roof, HVAC, plumbing)
- Pay the mortgage even when the property is vacant to avoid foreclosure
- Complete complicated tax forms
You can hire a property management company to take care of most of the previous list, but a good property management company will cost money. Even if you hire a property management company, you’ll still have to deal with significant maintenance, remodels, and evictions.
A rental property may offer passive income but does not encourage being a completely absentee owner.
The Trials and Tribulations of Being a Landlord
As a landlord, you’re a real estate business. As such, you must guarantee that all legal requirements are fulfilled and upheld. For example, it is critical to abide by the Americans with Disabilities Act and Fair Housing Act when reviewing prospective renters and responding to tenant requests.
If you overlook the costs of being a landlord, you may be in for an unpleasant surprise.
You should allocate approximately 1% of the property’s worth yearly towards short-term maintenance. Suppose you have a rental home worth $250,000; as a responsible owner, you’ll want to set aside $2,500 of the rental income to cover minor repairs.
Long-term repairs must also be considered; typically, a new roof is necessary every fifteen to twenty years, and appliances ought to be replaced every five to ten years. A new roof is quite an expense, on average costing $9,019.
Investing in upkeep and improvements for your property is an expense. You can deduct these expenses when it’s time to file taxes. Covering the costs of repairs and upgrades will be a manageable loss but will require you to keep excellent records and hire a professional.
How to Decrease the Stress of Being a Landlord
Being a new landlord isn’t easy, but you can mitigate the worst by preparing and planning for problems to pop up. With a plan in place, you’ll have a framework for dealing with any issue that arises–and that is a way to decrease the stress of being a landlord.
Thoroughly Vet Tenants
Screening tenants is time-consuming and energy-draining. It’s also the most crucial part of being a landlord.
You want a reliable tenant who follows the lease terms by paying rent on time, reporting maintenance problems, and treating the property well. And you have to balance the need for a reliable tenant against the reality of having a vacant property. It’s a tricky balancing act.
When you vet tenants, you should have a thorough, concrete screening process that includes the following:
- Credit score
- Criminal background checks
- Rental history
You may be tempted to forgo the screening process, but think about how much more time and energy you’ll waste if you’re stuck with a nightmare tenant.
Review the Lease With Your Tenants
Even the most dependable tenants may be unable to abide by their lease and other regulations if they aren’t fully aware of what’s expected of them. To avoid potential issues, renters must be well-informed about all policies before signing a contract.
Protect yourself from potentially troublesome misunderstandings, and ensure that every tenant is fully aware of your lease options and terms.
Take the time to review each lease with your tenants before they sign it. Make sure you sit down with them, go over all the details, and answer any questions they may have. Doing this proactively can address your tenants’ anxieties and set the tone for a professional landlord-tenant relationship.
Delegate Where Possible
No one can take on every task alone; success requires a team of trusted professionals.
You may be an incredible DIYer, but you still lack the specialized knowledge and technical know-how of electricians and plumbers. You might have impeccable record-keeping and money-management skills, but you will still benefit from consulting an attorney and an accountant for their advice.
Beyond consulting professionals for their expertise, doing everything yourself takes time–time that may be better spent doing anything other than replacing a toilet’s leaky gasket at 3 A.M.
Prepare for Repairs and Maintenance
Unexpected maintenance issues can arise at anytime, especially if you inspect your property infrequently.
Issues that arise suddenly can be challenging to manage if they are not dealt with immediately. Not acting on them swiftly could further deteriorate the situation – for instance, minor plumbing issues might turn into a flooded basement without prompt action.
No one likes to dip into their wallet when there is a crisis; you must have funds explicitly designated for such occasions. That way, whenever something breaks down, you don’t need to worry about having the resources required.
To ensure you are prepared for any repairs, you should set aside up to 10% of your monthly rent income in a maintenance fund.
Is Being a Landlord Worthwhile?
Investing in the residential rental market has the potential to be extremely rewarding, but it is essential to recognize that there are several difficulties associated with this venture.
There are distinct challenges with owning a rental property, including:
- Finding a rental property
- Remodeling and cleaning
- Finding good tenants
- Managing the property
The process of evicting tenants can be both costly and laborious. By recruiting a property manager, you can lighten the load of maintaining your rental property, but it will eat into your profit.
5 Signs You’re Tired Of Being a Landlord
If you still need to decide if it’s time to sell your rental property, here are 5 signs you’re tired of being a landlord.
You’re Ready to Cash Out
Regarding real estate investing, capitalizing on the appreciation of property is critical. The housing market has been on a meteoric rise recently.
Although the market has cooled some, property values are still high. Your property may now be worth considerably more than what you paid; this is a perfect opportunity to capitalize on its equity and cash out.
Tenants are Burdensome
Is there anything worse than a bad tenant? One who doesn’t pay rent on time or hides that seventh cat in violation of your six-cat pet policy. It’s safe to say bad tenants are a nightmare.
For some property owners, being registered and licensed with their respective state is a requirement before they are allowed to accept tenants. Laws such as these make it difficult and expensive to evict an undesirable tenant.
Dealing with troublesome tenants can be an unbearable strain on landlords. Selling your rental property is always an option to sidestep trouble tenants and spare yourself the hassle.
Maintenance is an Unbearable Hassle
As the owner, you are responsible for any significant repairs that need to be made on your property – not the tenant.
As you age, maintaining your rental property may become more labor-intensive and time-consuming than it used to be. If you hired a property manager, you’re still on the hook for the cost of repairs. Those fees can add up.
Working Nights and Weekends Is a Bummer
Being a landlord means being prepared to work 24 hours a day, 7 days a week, and 365 days a year. It’s different from your typical nine-to-five job, so prepare for plenty of work at odd and unpredictable hours.
Even minor challenges at your rental space require immediate action. A broken HVAC system at 1 A.M. on a Saturday can’t wait to be fixed on Monday.
It’s Time to Move On
The location of your rental property is essential. Today, your neighborhood may thrive but decline just a few years later. You’ve got to escape while you can and recoup as much of your investment as possible.
Maybe you’re just done with the rental game and want to retire. A sandy beach and frosted drinks are calling you, and you intend to answer. Whatever the reason, you’ve decided it’s time to start a new chapter in your life.
Alternatives are available if you’re fed up with being a landlord and feeling stagnant. If you are eager to relinquish the burden of being a landlord, yet your home still needs to be ready for sale on the market, let us help.
If you’re tired of being an owner and want to move on, please let us know. We can help make selling “as-is” a breeze. By selling your property now, you can prepare for a potential economic downturn; rest assured, we will offer a fair price.
You can avoid the headache of dealing with real estate agents and a real estate market in flux with a cash real estate investor. You can sell your house fast with a cash offer today from We Buy Houses For Cash.