4 Ways For Landlords To Avoid Losing Money
Whether you’re a landlord by profession, or simply renting out a property as a source of passive income, owning a rental property can be a highly lucrative endeavor. But as with any business venture, it can be risky. You may have to deal with troublesome tenants, long periods of vacancy, damage to your property, and several other unforeseen mishaps.
Every landlord’s dream is to have good tenants who respect your property, have no complaints, and stay a long time. But there are always obstacles that you’ll have to face. One of the biggest causes for concern is when tenants decide to move out. This is where you are likely to face the most significant loss to your income.
The last thing you want is for your property to remain unoccupied for a long time, so your number one concern is to get a new tenant to fill the vacancy as soon as possible. But several things can cause delays in the process. Miscommunications between you and the current tenants, last-minute damages and repairs, and poorly executed moves can all hinder your progress, possibly resulting in you being out of pocket.
To avoid losing any money unexpectedly at the end of a tenancy, here are a few tips to help you make the process as smooth as possible.
As your tenant approaches the end of their lease, you want to have an idea of whether they intend to stay on or move out. Even though they may have a fixed notice period (usually a month), if you have a good relationship with your tenant, you could check in with them ahead of time and ask them their intentions. If you discover they are planning to move, you can get ahead of the game and start the process of putting the property on the market a lot earlier.
Stay on schedule
Throughout the moving out process, both you and your tenants will have several responsibilities. This includes cleaning and emptying the property, sorting out paperwork, and handing over utility bills. Avoid unnecessary delays by completing all your tasks well ahead of time, and gently nudging your tenants if they take longer than expected.
Show the property early
Once your tenants have made their intentions to move out clear, you will probably have a few weeks to find a new tenant. This will mean you may have to conduct viewings while the property is occupied. This can be awkward, and you will have to be sensitive to the needs of the current tenants. Try to organize viewings to their convenience and ask them to keep the property clean and tidy so as not to repel any interested parties.
Some of the biggest losses can occur when you have to conduct expensive repairs at the end of the tenancy. If the tenants have caused any damage, you will need to have proof that it was their fault before you can take money from their security deposit. Before renting out a property, you should take extensive photos of all parts of the building to cover you in case they claim the damage was present from the outset. You might also consider hiring a property inventory company to conduct an inventory check before and after the tenancy.