Rental properties come with expenses. Some are big, some are small, some are expected and some come as a big surprise but there is always something that comes up so landlords need to be prepared.
Here are some of the more common expenses that a landlord can expect with their rental properties:
So, why is it so important to repair and maintain your properties? First, your tenants are paying off your investment so they deserve to live in a property that is safe, secure and has everything in good working order. Second, a good landlord that responds promptly to requests for maintenance will be much more successful in building long term tenant relationships which are the cornerstone of a good rental property business. Third, looking after your properties will also add value to your investment as your property values continue to rise with these improvements, repairs and maintenance.
If you’re like most people, you likely don’t have a lot of extra cash on hand every month but that should never stop you from looking after your investment. Ignoring problems can and will lead to run down properties and a lower grade of tenant.
There are two key ways to overcome the problem of unexpected expenses. The first is to try and build a reserve fund from your monthly rents. If you have any surplus after your bills are paid each month, put this aside to cover these expenses. The second is to have access to credit. Putting a line of credit in place for these expenses will give you piece of mind that you can handle the unexpected and with interest rates so low, you can pay it back quite easily in small increments.
For new landlords, there are always fears and uncertainties when buying that first property. Anything that can be put in place to ease those fears is a good thing and will be so helpful in moving the dream into a reality. To your success!
As a landlord, whether you are just starting out or have years of experience, there are always going to be bumps in the road. You can be well organized, prepared and have all the best systems in place but eventually there will be a crack in the armor. And when these cracks appear, how you handle them is what matters most.
The truth is, some tenants are very savvy and have made lying an art form. When they get past your radar and take up residence they can make your life very difficult until you can remove them. Sometimes the rental property you purchased turns out to be a bit of a money pit with far more expenses than you anticipated. Occasionally, everything seems to happen at once with one property remaining vacant for an extra month or two and another with some major repairs that need to be done putting a real tax on your finances.
When disaster strikes, it’s easy to think “owning a rental property sucks” and “my friends were right – why did I ever think this was a good idea? Dealing with tenants is a nightmare”. Getting caught up in that type of thinking tends to spiral and the next thing you know you’ve sold your rental property and are now advising people yourself not to do it – it’s not worth it.
Here’s some advice that comes from experience. The best solution for any problem related to your rental property (and life too for that matter) is acceptance. S*^t happens. Things don’t always go according to plan. Sometimes they’re so far off the plan that you can’t even remember what the plan is. It is what it is so the best thing you can do is deal with it, learn from it and add it to your wealth of experience to help you with things in the future. Don’t rail, don’t freak out, don’t give up. Take it in stride, do what you need to do to fix what you can at that point in time and stick to your long term plans and goals.
Despite all the bumps in the road – owning rental properties is one of the best decisions you have ever made and it will go a long way to increasing your wealth and helping you achieve your financial goals. Deal with things as they come, don’t dwell on the past and don’t anticipate bad things coming in the future. Owning a rental property makes you far better off than the majority of the population so hats off to you! Good things will always come your way.
Sometimes you have to ride over the bumps in the road to avoid running off a cliff. Other times you may have to fall into the potholes to avoid hitting the trees. Some days you have to experience the wrong turns, to recognize the right ones. There is no better navigation system than bad experiences in life so that we can recalculate our lives through better choices to reach our intended destination. Eugene Nathaniel Butler
To your success!