No one said being a real estate investor or landlord of a rental property is easy. Our moms are right, there are no single fast and easy ways to make it rich. In the past, play-it-big-investors put all their money into buying up homes and renting them out, but we all know that such a risky strategy doesn’t work for the every day, leisurely investor.
This Forbes article talks about several nightmare landlording experiences. Here are some we found to be all-too-true for the fast and loose real estate investor:
Getting the Right Tenants. Most landlords put so much effort into getting a tenant, but they sometimes drop the ball on qualifying the tenant and they take the first one that comes around. While most tenants will take great care of your property and treat it as their own, some do not. One way to ensure quality tenants it to screen – and then screen again. Ask as many questions as possible to understand who will be in the home, how many people, why they need it, visitors expected, etc. Typical furnished rental property tenants treat the property with the utmost respect because they are traveling business people who use your property as a place to come home to each night, not as party and entertaining central. If you have had problems with nightmare tenants, consider the furnished rental marketplace.
Investing in the Right Areas. Before buying a property to rent out, it’s important that you investigate the area throughly. Buy in areas that have retained desirability. Some condo buildings are being abandoned by their owners and the less owner-occupancy, the more likely your building could turn into something less-than-desirable to live in.
This article talks more about other nightmares landlords are exposed to when becoming a real estate investor. Enjoy!