House Renting Problems that You Need to Resolve
House renting provides additional income but it also brings up problems that you need to solve or prevent from happening based on the experiences of other landlords.
Among the most common problems are those that arise from the rental conversion of a single-family house that was supposed to be occupied by the buyer. Before advertising your property as a rental, make sure your neighborhood or your association allows lease agreements. Make sure there are no zoning restrictions in your area.
Likewise, if you are converting your basement, attic or garage into a rental, make sure zoning codes and neighborhood laws allow your plan. Any extension or construction of a separate entry way for rental space should also comply with building codes in your area.
Oftentimes, neighbors complain if too many rentals depress their quality of life because of too many cars parked on the streets, too much noise or too many irregular extensions that destroy the overall appearance of the neighborhood.
Make sure everything you do in relation to your rental complies with your neighborhood laws, your city codes and your mortgage contract because oftentimes penalties or the consequences on your mortgage are costlier than what you expect to earn from your rental space.
House renting can also affect your home insurance. Consult your insurance agent if changes in your property will void your right to claims. You may be required to buy a policy for multifamily housing.
Another common problem faced by landlords arises from inadequate rental contracts or inability to implement the provisions of the contract. You may have specified penalties and fees for late payment of rents but you are not able to impose them because you are too kind or the tenant turns out to be the worst person you have ever met.
Just like other problems in life, the problem of a delinquent tenant is better prevented than solved. Spend time in screening tenants; do not accept the first one just because there are few people looking at your rental. Many landlords say that a vacant rental is better than a rental occupied by someone who not only refuses to pay but also refuses to leave and destroys your property.
Despite these potential problems of owning or managing rental properties, do not be discouraged. There have been many individual investors who have successfully earned income from house renting. Just research thoroughly, plan wisely and learn from the experiences of other landlords.
