Are you planning to rent out your home then you should be aware that there are risks related to being a Landlord? As a professional Property Management in Baltimore County, we prefer to be upfront about these risks so that you have pragmatic expectations. Many homeowners, after communicating with us, choose that becoming a Landlord is not the right option for them.
For us, it is important that you know the risks before entering into a Landlord/Tenant contract instead of after. To help you in deciding if being a Landlord is really, what you want to do we have some detailed risks set out here for you.
Receiving Rental Property Rent on Time
As property, managers have found during the time handling rental properties one of the risks you are going to face is the fact that not all tenants pay their rent on time. You may even find that some do not pay their rent. When it comes to tenant qualification, we are very careful, but the truth remains, some do trick us and we stay on top of these situations. As soon as tenants are late with their rental, we call and keep calling until we do get cooperation. If co-operations, not found amid the tenant, and us, we will file for eviction.
It is necessary to set these strict expectations as it alleviates problems down the road. If we as a Property Management Baltimore County, Maryland company do not lay down rules early in the relationship, there is a great chance that renters take advantage of the situation when it does arise.
Nonetheless, we advise that property owners continue to pay their mortgage on time to save their credit score. Therefore, in the event of late rental payments, you should prepare yourself to have added financial cushioning to pay your mortgage.
Damages to the Rental Property Home
Yes, there will always be wear and tear to the property. Some tenants do not care for rental homes as the property owner does. Still, unless the wear and tears just normal ageing of the fixtures and not beyond we as a Property Management company cannot charge the tenants for repairs. As a Landlord, you will have to be prepared to do touch up painting and cleaning/replacing of carpets.
You will find that the Property Management Companies in Baltimore County documents the home prior to renters moving in and ensure that all documentation after moving outs done. Comparisons done by us with the move in and move out of tenants to see whether occupants has damaged the property and held responsible for it.
Profitability of Rental Property
As a Landlord, you will not always be profitable. As with all stock investments, letting out a home investment and being a proprietor is not a short-term investment, but a long one. You may find that profits, not made every day but does come out ahead in the long term if you keep your eye on it day by day. There will be months/years that have more maintenance, problems with tenants, and difficulties.
Conversely, by taking a continuing view, preserving your home as much as probable, hiring an excellent Poperty Msanagement Baltimore County, Maryland company and getting outstanding tax guidance, being a Landlord is a superb venture prospect.
Give us a call, let us help so you identify well ahead of time what risks are involved with being a Landlord, and how to handle those risks.