Owning a rental property seems like a great idea. You buy it cheap, you find a tenant, and then you profit from the rental income while you manage the property… how hard could it be?
Problem is, it’s often much harder than people realize and you may find (as many landlords do) the surprising truth of being a landlord in Pensacola: You give up your personal life – no more private time, no more vacations, no more weekend getaways… all because you’re so busy as a landlord.
But with that being said, having a rental property can indeed create a cash flow if you calculate the numbers correctly with accounting all the surprises that could come along owning the property, because if you don’t, you will find yourself disparately trying to come up with more money from other resources just to cover up the expenses of your rental property.
One of the big problems landlords face in Pensacola _ Florida or anywhere in the country is to have a property without maintaining it well. While the property starting to have a lot of issues when it comes to repairs and updates, the required rent started to decreased along the way, the reason is, the less attractive the property becomes, the less rent you can ask for it, the less money you can make and that’s if anything left after you pay all your expenses.
Also, not asking the current market rent value can lead to running short of money. The reason you must ask for the current rent value for your rental property is inflation. All your rental property expenses are going up. For example, the property insurance in Florida went way higher in the last few years. Prices went up double and triple the price a few years ago, because of the hurricanes and tropical storms we get here in Florida.
Moreover, the property taxes go up every year because the property value goes up. Repairs and materials go up. Therefore, you need to go up on the rent, this way you won’t be left behind with only bills and expenses that your income from your rental property didn’t cover. Below we will go over the surprising truth of being a landlord in Pensacola, and what to expect of having a rental property in Pensacola, this way, you will be prepared for the things you might overlooked before.
There’s the work required
Owning a rental will keep you busy. There’s the work required to find the property, then to fix it up, then to find a tenant, then to answer the phone from them every time they call. Even if they call late at night because the toilet is overflowing, you have to take their call and deal with it. That means: no more vacations, either, because what will happen if the toilet overflows while you’re in a different country? Actually it’s not that bad if you have already deal with handymen, plumbers, electricians, contractors, etc.. To handle any repairs that can come along if you’re not close by.
Let me go back to what I mentioned previously. Which is to collect enough rent to cover up any repairs that will come along. Always you need to price your rental property at current market value. This way you can afford hiring professionals to do the job for you. The idea of having rental properties is to retired from the cash flow you create from your real estate investments. Not to quit a job to find yourself buying another job.
There’s the time
Some landlords try to own a rental property while they have another job but many discover that it’s just as time-consuming… it’s like having a second full-time job! Between chasing down your tenants to fixing things around the house, it’s one thing after another and you may simply not have time to work at your other job… and that’s with ONE rental property. Landlords who own two or more are even busier.
One of the most important tip I can give you here is to choose your tenants wisely. Time is money and the last thing you need to do is to have a tenant that is not paying the rent on time or worse is not paying rent at all. The solution to this problem that many landlords facing is to screen your tenants before moving them in your property. This step is very important. Even if your tenant was good at paying rent but bad with complaining. You need to know the applicants behavior by screening them. This step will save you a lot of time and make you more money. By having a tenant who pays on time, current rent market value, and easy to deal with.
There’s the cost
Rental properties aren’t cheap. Sure you get some rental income from the tenant but you also have to take care of the property, fix it up, make upgrades, and repair it if the tenants trash it when they leave. In other words, the costs add up and the financial rewards of owning a rental property may not be there for you.
One important step you can do is to do a routine check up on your property, this way you can insure the tenant is well taking care of the property, even if they’re not taking care of it, you will be able to catch it early on before they get the property in a severe bad condition.
There’s the stress
When you add up all of those things so far, it equals STRESS! You’ve got so much to juggle with the rental property, and you worry about it constantly, and perhaps you even fear opening the mail because you may find bad news in the next envelope. That’s no way to live when your rental property stressing you out!
But we’re not here for the stress. We’re here to make some money from our rentals. And for this reason. I will provide you with the solutions you need to help you and insure that you’re going to have the right steps, and not fall victim to the surprising truth of being a landlord in Pensacola for many landlords. The next steps I will uncover for you the correct steps you need to take whether you thinking to become a landlord or you’re already being a landlord in Pensacola and the truth that will set you free.
What Are The Best Practices Of Being A Landlord In Pensacola
Being a landlord in Pensacola is not an easy job. You need to take care of your rental property, deal with tenants, and take care of legalities, all while maintaining your sanity. However, with the right approach and best practices, you can make your job as a landlord much easier and more rewarding.
we’ll guide you through the best practices of being a landlord in Pensacola. From screening tenants to handling repairs, we’ll provide you with valuable tips and tricks to help you become a successful landlord.
1- Screen Tenants Thoroughly
The first and most important step in being a successful landlord is to screen your tenants thoroughly. You do not want to rent your property to someone who doesn’t pay rent on time or damages your property. To ensure that you have chosen the right tenant, you need to do a background check, credit check, employment verification, and a rental history check. By doing so, you can prevent rental issues and protect your property.
2- Set Clear Expectations
As a landlord, you need to communicate clear expectations to your tenants. This includes rules about rent, utilities, and property maintenance. Before renting your property, sit down with your tenants and discuss the lease agreement, including payment details, repairs and maintenance responsibilities, and length of the lease. Making sure everyone is clear on the expectations will prevent misunderstandings down the line.
3- Treat your tenants fairly
Being a landlord isn’t just about collecting rent and maintaining your property. It also involves treating your tenants with respect and professionalism. Make sure that you are responsive to their needs and concerns and remain courteous in your interactions. Additionally, treat them fairly and equally, regardless of their background, race, religion, or gender.
4- Keep Up With Maintenance
To keep your rental property in top condition, regular maintenance is necessary. This includes regular cleaning, repairs, and inspections. By staying on top of these tasks, you will prevent minor issues from becoming major problems, saving you money in the long run. Plus, tenants will be more likely to renew their lease if the property is well-maintained.
5- Hire Professional Help
Being a landlord can be overwhelming, and it’s okay to ask for help. When it comes to maintenance and repairs, it’s best to hire a professional handyman. They can fix any problems quickly and with minimal disruption to your tenants. Plus, if you are not handy yourself, it’s best to leave it to the professionals. Additionally, a property management company can be a great help in screening tenants, lease agreements, and maintenance of your property.
6- Keep Track of Legal Changes
Laws and regulations are constantly changing. As a landlord, you need to stay up-to-date with any legal changes regarding landlords and tenants. By doing so, you avoid costly fines and legal disputes. You can easily stay on top of legal changes by joining landlord associations, attending seminars, or regularly checking local news sources.
Tired of Being a landlord in Pensacola? If you own a rental property and want to get rid of it, we can help. We buy properties (even frustrating rental properties that have damage or bad tenants you can’t get rid of). Can we make you an offer on yours?