Many landlords see property investment as a wealth creation strategy . Many choose to use a property management service, however a number of landlords believe they can successfully mange their rental property themselves but here at Sutherlands Property Management Group we find that more and more private landlords are running into problems they didn’t expect. in the next few weeks we will explore the problems associated with being a private landlord.
Tip One – Bad Tenants tend to Avoid Agents!
It is often true that a private landlord can place a ‘for rent’ advert in the newspaper ans tenant type likes to target private landlords knowing full well they most likely be accepted on face value, with no reference checks or stringent identification checks completed that can expose their unsavory rental history
Tip Two – Bad tenants don’t like regular inspections!
At Sutherlands Property Management Group, experience tells us that some bad tenants target private landlords because they know that most do not conduct regular inspections. This allows them to conduct illegal activities that can result in substantial damage to the property. It is only after that tenant has left or has been evicted that he damage and devastation becomes apparent. This of course leaves the landlords to fix the damage and deal with a massive potential financial loss.
Tip Three – Delaying the Rent Arrears Process
If a tenant falls behind in the rent, private landlords can five the tenant lengthy periods of ‘grace’ unknowingly allowing them to get into a financial ‘point of no return’ where they are unable to catch up. When the landlord finally starts to serve legal notices it is too late and results in a much greater loss than if the correct action was taken a more timely manner, This can also prejudice landlord insurance claims if the legal process is compromised.
A Sutherlands Property Management Group our trademarked Ontrack Management system contains a stringent set of rent arrears processes in place, ensuring that rent arrears are followed up and managements when instances appear, minimizing the financial impact of such occurrences. This is reflected in our current rent arrears rate of 0.2%.
Tip Four – Becoming Emotionally Involved
Taking action against a tenant is much harder when you have become emotionally connected with the tenant. Having a business only relationship is good, however having a ‘no relationship’ status is better by employing a property manager, who avoids becoming emotionally involved and treats any situation in a professional matter. Becoming emotionally involved can make your landlord experience a bitter one if a bad tenant takes advantage of you ‘good will’ and leaves you with financial loss.
Our Ontrack Management Systems employs a systematic approach to property management, where by certain situations, activate specific and effect set procedures of procedures to mitigate the circumstance.