Did you know that roughly 44.1 million US households are renters? With so many rental properties, residential and commercial alike, it's understandable that landlords experience stress.
Although being a landlord is a fantastic investment opportunity, owning real estate can be stressful. Landlords need a way to decompress at the end of the day. From collecting late payments to managing evictions and handling repairs, the demands may seem never-ending.
If you're wondering how to manage landlord stress, then this article is for you. Keep reading to learn more.
Tenent Screening Process
One of the best ways to manage stress is to prevent it before it starts. If your source of stress is less than adequate tenants, then you need a thorough screening process before signing a lease over to them.
Look for tenants who pay rent in full and on time, calling their previous landlord for references. Ensure you're selecting quality tenants that are respectful of your property.
While you need to fill rental vacancies swiftly to avoid losing money each month, you do need to be careful of who you rent your property to. However, ensure you're fair in your selection process to avoid potential discrimination lawsuits, leading to more stress.
Your screening process should be strict and standardized across the board. Check rental history, income requirements, credit scores, and prior evictions, and conduct background checks. Let prospective tenants know your standards ahead of time.
Handle Repairs Quickly
If a tenant has a repair order out, it's best to deal with it quickly. The longer you leave an issue, the greater the risk of it worsening, costing you more money- and stress- in the process.
Create a calendar of repairs and complete them as soon as they come your way. Stress piles on, and the longer you leave an issue, the longer you'll have it weighing on you.
Leaving issues for too long also creates tension with tenants, adding to your stress. They may refuse to pay part or all of their rent until a repair is completed, making matters worse.
According to the American Psychological Association, money is a top stressor for most Americans. Since maintenance issues can happen at any time, it's best to have a maintenance fund ready to go.
If you don't have a proper maintenance fund and can't complete issues as they arise, you run the risk of letting them sit. This can lead to larger expenses as the issue worsens. A maintenance fund allows you to handle problems as they arise without having to stress about funding the repairs.
Without a maintenance fund, you may have to do into your personal savings if something breaks. A rule of thumb is allocating 3 to 10 percent of monthly rent for your maintenance fund.
Manage Landlord Stress
Remember to be strict but fair with your tenant screening process, sock away a maintenance fund for rainy days, and handle problems as they arise. Following these steps will greatly reduce your stress as a landlord.
Whether you're looking to purchase real estate, rent a home, or need property management near Stillwater, NY, Veno Properties has you covered. Contact us today for all your real estate needs.