Landlords in Denver make anywhere from $28,490 to $123,790 a year. Such passive income makes this a lucrative job.
But, this work does not come without challenges. Awareness of these issues will help you go into business smarter.
Don't go into this field blind. Read on to learn the most common landlord problems and how to avoid them.
Late Payments
Becoming a landlord requires a little wiggle room in your finances. Even great tenants can fall on hard times and miss their scheduled payments.
This leaves landlords in a position to wait for their money. Colorado renter's law allows tenants a little leeway.
You cannot charge a late fee until one week after rent is due. They cap the fee at 5% of their outstanding balance or $50.
When multiple tenants pay late, this can put a landlord into a financial crisis of their own. Hiring property management for rent collection takes away the hassle of chasing down payments yourself.
The tenant portal makes it easy to set up automatic rent payments. And we collect the late fees for you so that a good sob story doesn't stop you from collecting your debt.
Bad Tenants
Every once in a while, a bad tenant turns your dream into a nightmare. Late rent payments can happen to anybody, but a bad tenant may run into problems frequently or stop paying rent altogether.
They break rules, cause issues with neighbors, and often damage property.
Renter's law now makes the eviction process take longer than it ever did before. This creates a headache and can put your income at a standstill.
Bad tenants create some of the biggest landlord challenges that can, fortunately, be subdued with property management. A property management team takes tenant screening seriously.
Due diligence helps select only the best tenants for your property. When one slips through the cracks, they efficiently take care of the eviction process for you.
Disorganization
A successful landlord owns many properties. Organizing every aspect turns more challenging with each tenant you take on.
Renting a property requires:
- Screenings
- Applications
- Meetings
- Legal paperwork
- Rent collection
- Maintenance
- Accounting
This list only summarizes the responsibilities. A strong property management team takes care of all of it!
They keep everything organized through state-of-the-art systems. Handing this over to them leaves you time for additional opportunities and freedom.
Legal Issues
Upon purchasing your property, you sign a binding contract. Then your tenants sign their own legal agreements. This opens you up to all sorts of legal dilemmas that could come your way.
If a tenant breaks their contract in any way, you may need to file a lawsuit against them. Or, tenants that feel wronged by you may take you to court.
Legal processes take significant understanding, time, and energy. Hiring property management means handing over the responsibility to a team who understands the law to help you prevent legal issues and deal with the ones that do come up.
Keep Landlord Problems to a Minimum
Property investments often prove lucrative. Landlord problems will arise though.
You can keep these issues to a minimum by hiring a strong property management team! Look closer at what we do on our services page and then contact us for your quote!
