When you set out to invest in a rental property, landlord rescue isn't something that crosses your mind. You're confident that the property will become a steady source of rental income and you will spend your days living your best life.
Unfortunately, being a landlord can come with several challenges. When you're chasing down rent payments, you might be busy showing vacant units to interested renters.
These tasks are manageable, but you must be careful not to make mistakes that will leave you calling for professional help. Read on to stay informed!
1. Failing to Screen Renters
If you're already dealing with a bad tenant, you probably weren't keen on tenant screening.
Tenant screening is the process of evaluating a renter's suitability to be your tenant. It involves checking their credit score, verifying their employment information, and doing a criminal background check.
If you fail to comprehensively screen a renter, you might be opening a can of worms. A bad tenant can make your life stressful, waste your time, and get you engaged in a time-consuming and costly eviction process.
When things get here, you might have no choice but to hire a property management company and let them handle the tenant.
2. No Rental Lease Agreements
Some first-time landlords overlook the importance of having tenants sign a rental lease agreement.
What's the worst that can happen if there's no lease agreement anyway?
Well, without a written lease, there's no official record of your rules and conditions for renting. If you verbally instruct a tenant to pay their rent on the first of every month, for example, nothing stops them from paying on whatever date they wish.
The lease agreement is a legal document. It protects your rights as a landlord. Without it, tenants can arm-twist you, leaving you with no choice but to call landlord rescue.
3. Sleeping on Bookkeeping
You may not look like an entrepreneur, but in the real sense, you're running a business -- a rental business. Like all businesses, bookkeeping/accounting is the key to sound financial management.
However, if you're the type of landlord who's never keen on keeping a record of the property's expenses and revenues, you'll soon be in a situation that requires landlord rescue.
When tax season comes, you'll need to declare your rental income. Without good records, you will struggle to establish how much rent you earned in the last year. Since you don't want the taxman taking a closer look at your finances, only a bookkeeper will help you get your records straight.
Find Landlord Rescue at Team PMI Mile High
To err is to be human, but in the world of rental property ownership, some mistakes can be costly. Don't leave it too late when you're in a bad situation. Get landlord rescue immediately and the situation will be remedied quickly.
At Team PMI Mile High, we specialize in rescuing troubled landlords in Westminster, Colorado. Even when you're doing well, we can still step in and make your work a lot easier, and your investment more profitable, thanks to our years of property management experience.
Talk to us and let's discuss your needs.