Being a landlord comes with the task of having to sometimes be the bad guy, but it isn’t a job that you should shy away from. Many landlords are making simple mistakes that are costing them in profits every year! Let’s go over a few ways that you can stop throwing your money away, and how to resolve falling into these habits in the future.
Keeping Property Vacant
Obviously, as a landlord, you know that vacant properties are not bringing in money. However, when a property is empty only a month or two, you may not think twice about the costs it is inflicting on your enterprise. Vacant properties, even for a short time, are a huge waste of money.
Stumped on how to fill the space? Take your properties back into your control! The second you know that a property will become empty, start looking for a way to fill it back up. Advertising and marketing efforts should be constant, but pushed heavily when tenants decide to move.
Avoiding Late Fees
If you are personally late on any bill, such as water, energy, or your cell phone, you know that the late fees can quickly add up. However, many landlords are reluctant to tack on late charges when rent is late, even if it is in their policy and lease agreements. Tenants will do their best to tug on your heartstrings, but it’s important for you and your business to stay firm. The problem with allowing tenants to get away with late payments is that they are more likely to do it again and again. While having some flexibility in your rental policy is common, make sure that you are sticking to the rules you laid out for your company, and train tenants to either pay quickly and on time, or get rid of them sooner. Don’t let the late fees add up!
Stop Raising Rent
The common misconception amongst landlords is that they believe if they start raising their rent, that they’ll suddenly be flooded with tenants packing up and moving out. This then snowballs into the fear that you’ll have empty apartments and money down the drain. However, time and studies have shown that this is not the case. If you have a tenant that has lived in your property for an extensive period of time, they are more likely to stay, even with slight rent increases. Raising rent between $15 - $30 a month shouldn’t be emptying the pockets of your tenants, but will help you with the increased inflation issues, that are surely not going away. Likewise, raising your rates will keep you in the game with the other rental areas around you, who are likely keeping their prices up with a steady increase.
There are several ways that landlords are throwing away hard earned money, and we want to make sure that ends today! Remember that your rental properties are your business and that the goal to stay in business is to keep your profits up. If you find yourself struggling to be the bad guy, look towards a stronger lease agreement, and remember, it’s just business.