5 Issues Every Landlord Needs To Plan For
Are you considering starting a property business? Becoming a landlord can be a hugely successful strategy to secure a long-term secondary income source. Every landlord understands the importance of finding:
- a great location
- a great rental setting
- great facilities
However, landlords need to think outside the box to plan proactively against some of the challenges they might face. Here are the top 5 issues you must prepare for to maintain your property business.
Protect your home against second losses
Over time, a property can develop faults and damage by no fault of your own. Even responsible and trustworthy tenants can cause accidental damage to the furniture or the structure. To preserve the property and your income, you need to invest in dedicated landlord insurance. Ultimately, the landlord cover protects both the property, like home insurance coverage, but also your income in case tenants can’t pay for any reason.
Consider natural disasters
Natural disasters are becoming unpleasantly frequent. Flooding and heavy rain are some of the more frequent occurrences. You might assume that your landlord insurance can provide protection against extreme damage. Unfortunately, most insurers will recommend taking additional cover to ensure the landlord doesn’t have to pay for a water damage restoration company out of their own pocket. It’s a good idea to review the recent extreme weather events in your local area to figure out which protection is best suited for your home.
Tenant screening is a must
Tenant screening is a no-brainer when you start your real estate side hustle. However, most landlords are unsure about how to organize the screening process. Many choose to interview tenants to build a first impression. In reality, the screening process should include running credit checks and criminal background checks, confirming employment, and verifying prior residence history. It can be beneficial for landlords to rely on a professional screening tool to ensure they can use the most relevant and accurate data.
Sudden changes in the local community
A rental needs to maintain access to public transport and local amenities. However, when the local community changes, making your rental attractive to new tenants can be tricky. For example, if the local medical practitioner moves into a new place further away from the rental, future tenants may consider the rental location less suitable.
Ideally, landlords need to keep track of all infrastructure and business plans and projects in the local area to make sure they can market their property accordingly. A rental in the vicinity of business areas should target professional adults in age of working rather than seniors.
The no-pet policy needs to change
Should a landlord allow pets on the property? Almost 7 in 10 households have a pet. So, if a landlord doesn’t authorize pets, they could lose approximately 70% of the tenant market. Additionally, it’s worth mentioning that pet owners tend to be responsible tenants who take care of the space and rent on time. They are more conscientious and loyal, ensuring long-term rental lease agreements and frequent renewals.
Are you ready to bring your rental to the next level? Smart decisions regarding your tenants can make it easier to attract reliable individuals through tenant screening and a policy allowing pets. Landlords must consider multiple cover solutions to protect their properties, as the typical home insurance is not suitable. Finally, the more involved a landlord is with the local communities, the better they can market their rental.
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