PropertyTop 5 Challenges Facing Landlords in 2022

Top 5 Challenges Facing Landlords in 2022

Despite real estate being a stable and low-risk investment option, it still has drawbacks. However, current knowledge helps you stay ahead of such problems. Also, it helps to work with a property management team that can overcome these challenges.

This article delves into the top 5 challenges facing landlords in 2022. We’ll also look at some practical solutions to these issues, so stick around. Most Common Problems Landlords Face in 2022

1.   Late or Missed Rental Payments

One of the most common problems landlords face is late or missed rental payments. Unfortunately, irrespective of whether your tenant has a good reason, it puts a halt in your cash flow. As a result, you might not be able to meet up with other financial responsibilities. That might include paying off your mortgage, keeping up with maintenance, or even covering your bills.

2.   Frequent Property Damage

Another problem you might be facing is the issue of frequent property damage. Houses are not invincible, and one or two things are bound to become faulty. However, it becomes problematic when something new seems to malfunction every week. These unforeseen mishaps can be costly and eat into your profits if left unchecked. Additionally, you might suspect foul play at foot when there’s some tension between you and your tenant. Some renters are malicious enough to damage property to spite their landlord intentionally.

3.   Tenants that Violate Their Lease

Having tenants that violate their lease can be a real pain. Imagine dealing with the fault-out effects of subletting or extended guests after explicitly banning it in your agreement. If you have a tenant who openly flaunts the rules, it can cause friction. As a result of their actions, you might have to endure unintended damage or excess expenses. Neither of which sounds pleasing when you’re running a business.

4.   Prolonged Vacancies

Sometimes your problem might be that you don’t have enough or any tenants. In a scenario where your units are empty, you’re not making money. On the contrary, it could even mean running at a loss since you still have to pay your mortgage. Prolonged vacancies might be due to unfavorable market conditions, high tenant turnover, or poor marketing.

5.   Keeping up with Maintenance

A common myth about real estate is that it is a passive business. In truth, owning rental property requires close attention and hard work. If you cannot keep up with maintenance, your property will fall apart and encourage tenants to leave. Thus, you have to stay on top of repairs. Also, it would help if you tend to other responsibilities like collecting rent, managing complaints, and more.

Tips for Overcoming and Avoiding These Challenges

 

1.   Conduct Regular Inspections

Conduct regular inspections on your property to save you from headaches. Frequent evaluations make your life as a landlord easier for two reasons. First, it allows you to catch problems in their early stages and address them sooner. It also allows you to budget for a new HVAC installation, mold removal, or floor replacement. That way, these expenses don’t spring upon you. Secondly,

regular inspections allow you to note the state of your property before and after a tenant. Thus, you can hold them accountable for damage beyond normal wear and tear.

2.   Automate Rent Payment

Save yourself the stress of going door to door to remind and collect due rent. In 2022, you should be taking advantage of e-payment systems to make your life easier. Automated rental payments save both parties a lot of time and effort. Even if all your tenants aren’t tech-savvy, most of them are probably millennials that are adept at setting up such arrangements. Thus, it’s undoubtedly worth making it a payment option.

3.   Perform Thorough Tenant Screening

Reduce your chances of dealing with defaulting tenants through thorough tenant screening. Some landlords see this as an unnecessary step, but that couldn’t be further from the truth. Employment, income, and previous references can tell you a lot about a tenant before signing a lease. Renters with a history of missing rent, damaging property, and causing trouble are likely to repeat the pattern. Hence, it would help to prioritize a proper screening for every application.

4.   Hire Help If You Need It

Finally, you should hire help when you need it. It’s much easier to handle a problem when you have a backup, which might come in various forms. Different professionals can come to your aid depending on the issue at hand. Do you need help evicting a tenant for late payment? Speak with a real estate lawyer. If you’d like to fill your vacancies, contract a real estate agent or a professional property management company. The latter can also help manage the day-to-day of your properties. Besides, outsourcing also leaves you with more time and energy for other tasks.

Conclusion

These were the top 5 challenges facing landlords in 2022. Late payments, property damage, and vacancies can drastically reduce your revenue. Also, demanding tenants and a large workload can make managing your property stressful. Thankfully, you can avoid some of these issues through regular inspections, automated payments, and tenant screening. Additionally, a landlord must hire help when needed. Consulting a professional can relieve some of your burdens and even make your rental business more profitable.

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