For landlords, stress can be a serious issue. In fact, a recent study found that two-thirds of landlords believe property management is more stressful than having a day job. Whether the problem is a tenant who never pays on time, having to lay out money for expensive repairs, or dealing with tenants who continually break the rules, being a landlord can often be frustrating. With that said, it can also be a lucrative career choice, so it's important to know how to reduce stress so that you can enjoy the financial rewards of being a landlord without putting your health at risk.
Every landlord has had to deal with at least one nightmare tenant, or has had to learn from a mistake that ended up being an expensive lesson. The reality, however, is that the good usually outweighs the bad. By learning how to reduce mistakes and the anxiety that comes with being a landlord, it's possible to make the most of rental property investments.
One of the most common mistakes that many landlords make is either failing to screen tenants or not screening them carefully enough. The right tenants can make a tremendous difference in your stress levels as a landlord. While screening does take time and come with its own challenges, it can also save you from a lot of headaches. It is important to take care with how you handle rejections, or you could find yourself facing potential lawsuits. The key to making screening work for you is to standardize the process with a system designed to identify potential red flags and give you the information you need based on referrals, references, and background checks.
Rent and payment issues rank among the leading cause of stress in landlords. If you can streamline the payment process to ensure that you receive payments in a timely manner, you can eliminate a significant amount of the anxiety associated with managing your rental properties. The best course of action is to require tenants to establish an automated payment system that will transfer money from their bank account to your account. Not only will this allow for consistent bookkeeping, but it will also help to eliminate many of the excuses that renters come up with for not paying the rent on time. If an automated payment system does not work for you, consider requiring tenants to pay online.
3. Delegating and Outsourcing
Landlords often feel stressed because they are simply trying to do too much on their own. As a landlord, you must wear a lot of different hats. Outsourcing some of the tasks that you hate to do or that take up too much of your time can help to reduce your stress. For instance, rather than cleaning rental units on your own, consider investing in a cleaning service. Likewise, if you don't feel comfortable handling the screening of potential tenants, hire a professional service.
4. Keep a Repair Fund and Handle Repairs Immediately
If you find that tenants are constantly harassing you about repairs, the best way to eliminate this source of stress is to prepare for repairs. When you are a landlord, repairs are inevitable. Furthermore, the longer you put off repairs, the worse they become. Preparing in advance for repairs by maintaining a repair fund and tackling the problem head on rather than putting it off can ensure that this problem does not become worse later on.
5. Consider Hiring a Property Manager
Remember that just because you are a landlord does not mean you necessarily need to manage the property on your own. Hiring a property manager can help to relieve much of the stress you experience as a landlord. It is an investment, but hiring a property manager can help you focus on things that matter, like growing your business.
Despite the potential for stress, being a landlord can be incredibly lucrative. The key to succeeding is determining what you can handle on your own and outsourcing the rest so you do not feel as stressed. VerticalRent can assist by providing tenant screening services and online payment services.