Owning a rental property and managing it yourself can be a stressful task. You’re not only expected to take care of the property and your tenants. You also need to make sure that you file your taxes on time, screen your tenants, and find ways to retain their loyalty. With all the issues you’re sure to face, landlording is a challenging role that is not for the faint of heart.
To help you reduce the stress that comes with managing your rental property, here are some tips to keep in mind:
Make sure that you have enough cash
It is no secret that you’ll be the one responsible for keeping your property in tip-top shape. If you don’t make it a point to have enough cash for maintenance, then you might end up with a big headache once repairs and maintenance are necessary. Take note that no matter how good you are in maintaining your property, not all of your tenants are responsible enough. Having a rainy day fund will make it easier for you to tackle repairs without stressing over where you’ll be getting the funds.
Hire a pro to handle your accounting tasks
You may think that you can handle all of your rental property’s accounting-related tasks. But in reality, there is more to rental accounts than meets the eye. There are trustworthy accountants for landlords who will make sure that your business is as tax-compliant and tax-efficient as possible. You’ll have that peace of mind, knowing that a professional is taking care of your tax work and finance. This allows you more time to focus on your other important tasks.
Consider other tenant payment options
Do you find it hard to collect your tenant’s rent each month? Then maybe it is now time to consider other payment options. If you’ve been accepting cash only, then consider online payments and check payments. If you allow post-dated checks, this will eliminate your tenant’s need to write a check or pay via cash each month. You can also consider online payments so that your tenants won’t have any excuse not to be able to pay on time.
Have a landlord eviction plan
There are times when you will need to evict a tenant or two. Some choose to evict a tenant due to health and safety reasons. You can evict a tenant if they breach anything on your lease agreement. Some do this if the owner will now move out or if you decide to retire the property. No matter your reason for terminating the contract, you’ll want to have an effective eviction plan in mind.
Conduct thorough screening of tenants
Some landlords are so desperate to fill their units that they are willing to accept the first ones who show interest in renting their unit. But this will put you at risk of taking in bad tenants. This is why you should never skip tenant screening. Check their current earnings, what their past and current employers have to say, and their credit history. It is also a must that you conduct a background check to ensure the safety of your tenants and property alike.
Landlording may not be easy, but there are things that you can do to minimize your stress levels. By keeping this list in mind, you can avoid potential problems that can break your heart and your bank. Always screen your tenants and have an eviction plan all set up. Have enough cash and be open to tenant payment options. Of course, hiring an accountant is always a good investment.