4 Investor Rental Property Issues (And How To Fix Them)

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Rental properties earn you an income. But, unfortunately, they can also be a liability. When things go wrong, it’s costly. 

The purpose of this post is to provide you with a heads-up. It discusses rental property issues you will probably face as an investor and how to fix them. By the end, you should have a better understanding of the risks. 

Damp Issues

Most investors will face damp issues at some point in their careers. Basements can floor or foundations can crack, allowing water in from the surrounding earth. 

The trick here is prevention. Ensure your properties have proper membranes preventing water from getting in. Also, check the roofing and walls for cracks and holes.

If there is already dampness in a property, use mold remediation. Removing spores will help prevent organics from returning and causing harm. 

Don’t try to eliminate dampness on the cheap. Paying as little as you can will usually result in shoddy work. 

Instead, get to the root of the problem and solve it. Don’t let it come back again. 

Finding High-Quality Tenants

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Investors also face the perennial challenge of sourcing high-quality tenants. Getting people who will actually pay every month is hard. 

One way to do this is to screen tenants. Historically, this process was hard for landlords, but now external companies do it for them. This way, you can bar anyone with a poor credit or payment history from using your properties. 

You can also require a larger security deposit. Asking for more money upfront helps you learn more about how liquid buyers are. The more cash they have to hand, the better. 

Involved lease agreements can help, but only to a point. If a tenant is just there to take advantage of you, no amount of paperwork will help. 

Dealing With Challenging Tenants

Investors also have the problem of dealing with challenging tenants. Even if they seem good on paper, it doesn’t always turn out that way in practice. Many renters ultimately wind up violating their lease agreements, making your life harder. 

One way to deal with this is to promptly outline their responsibilities when they violate them. It doesn’t always pay to leave it until later.

Another approach is to respond quickly to tenant concerns. Sometimes giving them peace of mind that you will fix problems can improve the relationship. 

You might also want to hire a legal team. Lawyers can provide support across your portfolio on retainer. 

Managing Market Fluctuations

Finally, market fluctuations can be a real headache for some landlords. When prices go down too much, it can prevent you from releasing equity to fund your activities elsewhere. 

One option is to diversify your investments. Instead of putting them all in one place, you spread them out to make them less risky. For example, don’t invest in a bunch of properties in the same town. De-risk by buying rentals in other areas. 

You can also get used to the idea of holding your rental property long-term. The more you hang onto it, the more money it is likely to make.

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