Buying rental property and deciding to become a landlord can be a very profitable venture over the long term, if properly managed. However, there is a lot more involved with successfully carrying out the duties of a landlord than many people realize.
Of course, it all starts with a fairly straightforward plan that seems like a clear path to success. Purchase rental properties at significant discounts, collect the rent checks and let the properties increase in value over time, simple right?
Finished Before You Start
A popular phrase in the real estate world is, “You make your money when you buy,” and it’s true! Many inexperienced real estate investors do not properly estimate how much it will cost to recondition a property and make it ready to rent. Being overly optimistic about rehab costs for the things you know about can make things difficult. However, discovering the cost of repairs for items you did not know about when you purchased the property can be a deal killer.
There are many reasons being a real estate investor is challenging, but the number one issue for many new investors is buying property for too much and underestimating the cost of repairs needed.
Landlord and a Lawyer?
It can be easy to underestimate just how challenging the legal landscape is for landlords. Each state has its own set of regulations applicable to landlords, tenants and rental properties. Additionally, there are federal regulations in place that must be followed.
While you won’t have to go back to school and get your law degree, for practical purposes you need to have a clear understanding of all the regulations involved with renting property and dealing with tenants. A small mistake when dealing with a problem tenant can easily cost a landlord thousands of dollars and months of wasted time.
Managing tenants will offer a broad range of issues, some you probably never thought possible. Difficulty collecting rent, damage to the property, tenants not following rules, domestic issues, family issues and anything else you can think of. This can be the most challenging part of a landlord’s duties primarily because there is no clear answer for how to deal with each tenant situation.
Every tenant is different and every situation will have a new wrinkle you have not experienced before. Therefore, you will be left with your people management skills and any enforcement power that is allowed by the regulations, which can be difficult to be sure about.
Had Enough Yet?
The problems discussed above are just a few of the reasons many decide being a landlord is just not for them anymore. They started out with thoughts of a passive income and increasing asset values, but in reality, they became a full time problem solver.
If you find yourself saddled with rental property and tenants you no longer wish to manage, many times the path of least resistance is the best solution. Finding a real estate professional that can provide you…a fair offer for your property, a fast cash sale and accommodate tenant situations will bring about a quick resolution and much needed relief for you.
Bridgetownhomebuyers.com purchases rental properties and helps landlords get out of bad situations every day. They have flexible plans that can accommodate various property and tenant situations, with the ability to offer cash for your property and a close in less than 30 days. Additionally, there are no realtor fees involved, which offers you immediate savings.
If you want to get out of the landlord business and back to enjoying life once again, then take a minute to see what www.Bridgetownhomebuyers.com can offer you today.[divider_1] [team_member name=”About Daniel Hadley” position=”Bridgetown Home Buyers – Staff Writer” phone=”” url=”” picture=”http://bridgetownhomebuyers.com/wp-content/uploads/2015/04/profile-blue-photo-640-x-480-e1432228424730.jpg”]Dan Hadley is a professional freelance business writer. He has been providing quality-writing services to international clients for the last seven years. He provides a wide range of content services with a focus on website content, copywriting services, articles and SEO content. Dan is originally from Detroit, MI but now spends part of his time living in Asia and traveling the globe, experiencing new cultures and adventure.[/team_member]