Rental properties can be fantastic investments that pay off for years to come. However, property ownership can be unpredictable, and disasters can occur. The best thing you can do is be prepared and know when to ask for help.
Let’s take a look at 5 common rental property disasters and some advice on how to avoid them.
- Local Rental Prices Drop
- Tenant Stops Paying Rent
- Your Tenants Start Participating In Criminal Activity
- Severe Weather-Related Property Damage
- Lack Of Proper Record Keeping
1. What If Rental Prices Take A Dramatic Drop?
If the marketplace is suffering and rental prices in your location are dropping, your tenants may threaten to leave unless you reduce your rent price. There are a few things you can do.
- See if your rent price is competitive by assessing the local market. A property management company or real estate agent can help.
- Offer incentives, such as home upgrades, as a way to raise your home’s value and entice tenants.
- If the market dictates that you should lower your rent, include a lease condition saying that you can increase the rent (with proper notice) at your discretion, so you don’t get trapped.
2. Tenant Does Not Pay Rent Or Goes Missing
If a tenant has disappeared and is not paying rent, there are a few things to try. First, try to reach them through the contact information you have. You will need to be familiar with local laws and go to court if necessary.
Depending on local laws and your lease, you can evict a tenant after a certain time of not paying rent. You may just need to store their belongings for a short time before they can be sold or discarded.
3. Tenants Are Participating In Criminal Activity
If you are afraid your tenants are participating in illegal activity, like drug dealing, here are a few tips:
- Be diligent with tenant screening services before renting out your home, apartment, or condo.
- Don’t accept cash payments, and be sure there is language about criminal activity in your lease.
- Evict anyone who violates these provisions.
- Lean on your rental property management company for help, and involve the police if necessary.
4. Denver Weather-Related Property Damage
Denver storms can cause damage to rental homes. Be sure that your property insurance is up to date and completely covers your rentals. If damage does occur to your property:
- Take pictures of the damage.
- Make immediate fixes to prevent further damage.
- Communicate with your insurance company.
- Hire a reputable company to make more permanent repairs.
5. Lack Of Proper Rental Property Record Keeping
It is extremely important to keep good records of your rental property. Work with an experienced accountant or a house rental management agency to lessen your burden. No one wants to be scraping receipts together at tax time. Make a plan to keep everything organized.
Hire A Property Manager In Denver
Consider hiring a Denver property manager to ease the burdens of being a landlord and avoid many of the worst rental property disasters. Contact us at Cobalt Creek Property Management today.
