You most likely went into property management to increase your ROI, protect yourself against inflation, gain financial freedom, and expand your portfolio. While these are all good reasons to get into real estate, renting doesn’t come without its problems – mainly in the form of bad tenants. There are times when you can get lucky with great tenants and there are times that no matter how diligent you’ve been, you just can’t seem to win.
Common Problems with Renting
Renters Paying Late or Not at All
One of the most common problems comes in the form of tenants who pay late or stop paying at all. While you can always make more money by charging a late fee, this isn’t the best way to proceed. It’s important to set clear rules and guidelines as far as what you expect and when you expect it. Strong contracts can help with this process. Regardless of what a tenant gives you for an excuse, stick to your contract and do everything in writing. If you need to take your renters to court, you will have all the backup documentation you need.
Renters with Animals
Another common problem involves renters who bring animals onto the property when the contract clearly states no animals are allowed. When this happens, take immediate action and let them know they must get rid of the pet. Also, since the renters are in violation of the lease, they will lose all or part of their deposit. If you do allow smaller pets, make sure you see the animal so you know the tenant didn’t lie about the type or size of animal they have. A small terrier will do much less damage than a large breed and some breeds are not permitted by city code.
The Colorado Problem
When the State of Colorado passed Amendment 64 in 2012, it set the stage for legalized recreational marijuana to be permissible in 2014. Whether people were for it or against it, there was no telling how vast a problem it would become, and property management became a nightmare for some owners. There are rules and regulations regarding the growth of marijuana but it is still illegal federally, so having something written in the lease contract is imperative. Recreational growers have outrageous utility bills – including keeping growing lights on 24 hours a day and watering the plants, which translates into expensive water bills. Many growers do damage to the property and don’t care; they just want to make money. If you believe this could be a problem, have a no grow policy firmly written out. If you suspect the tenant is growing marijuana, contact your local police department immediately.
Make it Easy on Yourself
Property management isn’t something to take lightly. You’ve put your hard-earned money into buying properties and you want to get the most out of them – not to mention keep them like new. If you’ve ever dealt with a difficult renter, you know what you’re facing in the future.
It is often said that no one will care about your property more than you, which was true before finding the professionals at Stars & Stripes Homes, Inc. Stars & Stripes Homes understands the ins and outs of renting in Colorado, specifically. Stars & Stripes Homes can turn your property into a profitable investment while taking care of all the details from start to finish.