Owning a rental property in Hamilton can be a great way to build wealth and diversify your investment portfolio. However, it can be a lot of work to manage that rental property, especially if you already have a full-time job or you don’t have any experience in taking care of real estate.
Today, we’re highlighting the top five challenges that many owners face when they’re managing a rental home in Hamilton. These are also some excellent reasons to start looking around for professional Hamilton property management.
Finding High Quality Long Term Tenants
A good rental experience depends on placing the right tenants. In order to identify and attract those residents, you need to market your home strategically, price it competitively, and prepare it to show well once it’s on the rental market. This can be a challenge if you’ve never written an online ad or scheduled showings or collected applications. You’ll need to screen your tenants thoroughly, and it can be difficult to find the resources and the time to check out credit history, eviction history, criminal backgrounds, and rental history. You’ll have to verify employment and income as well.
Choosing the right tenant is hard work. If you get it right, you can expect a smooth rental experience where the rent is paid on time, the property is well cared for, and the residents communicate transparently and respectfully. If you get it wrong, you could face unpaid rent, property damage, and ultimately, eviction.
Working with Great Vendors
Finding the right vendors and contractors to work on your property can often be a challenge. Property managers often have relationships in place with these professionals, and can negotiate discounted rates. Independent landlords, however, may struggle to find plumbers, electricians, landscapers, and heating and cooling technicians to respond to emergencies and do good work at their properties.
Responding to Emergencies
Are you prepared to answer the phone at 3:00 in the morning, when your tenant calls to report a leak which is turning into a flood? This is something that most landlords don’t enjoy, but you need to be prepared to respond 24 hours a day. Make sure your tenants know how to reach you, and make sure you have a list of preferred vendors you can reach out to for help.
Time and Stress Management
Managing a rental home is stressful, especially when it’s your property. You may have an emotional response to some of the things that happen there, and if your tenant isn’t performing as you expected, your stress level can really get out of control.
It takes time and it takes patience and it takes a business-like approach. You have to respond in a timely manner to your tenants, and you need to put in all the work that’s required to keep your home habitable and maintained. You have to spend time showing it and screening tenants and overseeing work during turnover periods. This can be challenging, especially if you have a full-time job, a family to care for, and passions you’d like to pursue.
Staying Current on Laws and Best Practices
There are a lot of laws that govern the way landlords must treat their tenants and the way rental properties must be managed and maintained. These laws, of course, are always changing. So, it can be a challenge to educate yourself on them and stay up to date on the nuances of every regulation.
We meet these challenges on a daily basis, and we love what we do. If you’re considering professional property management for your Hamilton rental property, please contact us at Spotted Properties.