The only way to deal with real estate investment is to accept it if you’re not sure of any other ways to invest your money in.
In the real estate world, tenants usually complain about landlords and the high asking prices of renting and selling, beside the insurance paid fees that every tenant pay to grantee keeping the place well.
On the other hand, a lot of other problems appear to face properties owners when they want to invest and rent their properties, and because of some renters this investment can turn into a nightmare for some owners, so they would decide to steer away from investing their money in real estate.
Some problems facing property owners
One basic problem that real estate investors face, whether they are small or large investors, is the problem maker tenant. Troubles made by problem maker tenants are added to the package of troubles of real estate investment that should be noticed before entering the field of buying properties and renting it.
Not all troubles facing property owners are the late payment of the tenants, as only a few percentages of house renters pay their rent late, and if it was kept late month after month, the property owner has a complete right to terminate the contract, that is why paying the rent has never been the biggest problem when getting in the investing in the real estate industry.
Some tenants think that a property owner should do all the maintenance work of the house, even the smallest ones reaching to dealing with electricity, water, gas problems, and bills which are by logic the responsibility of the tenant himself and nothing to do with the owner.
And if you are the type of homeowner that gets annoyed very fast, these frequent problems will be a headache that you cannot bear.
Here are some common problems that property owners face with tenants:
1- A tenant refusing, or late when paying the rent
Tenants sometimes refuse, or be late in paying the rent and this happens for many reasons, maybe they have cash problems, or struggling with bills, or things are going wrong with their jobs, so you need to ask why the rent is late to see if this is temporary or this will happen again.
2- The tenant disturbs the neighbors
When the neighbors complain about being disturbed by another, then you need to investigate the situation to see where the problem is to be able to solve it
3- Tenants leave the house quickly and don’t complete their contracts
Some owners complain when the people they rent their properties to leave before they complete their contract, so instead of complaining you need to ask yourself if there is a problem with the apartment itself causing them to leave
4-Some tenants do damage to the house on purpose
Some tenants are evil, they do some damages on purpose to get revenge of the owner, that’s why you need to mention in the contract with details the conditions of the usage to make them committed to keeping it clean and with good condition after they leave.
How to terminate a contract with a tenant?
Remember, you can wait until the contract ends, whether it is a year or two, but if you need to end the contract earlier you can do that:
1-Give the tenant a notice period of 2 months, which is what the law states, to give the tenant enough time to find another place to go to.
2-If the tenant doesn’t want to leave after the notice period passed you can go to the court and get an order of getting him out very easily.
3-If he doesn’t want to do the court order, the court would send someone to execute the order.
To avoid any problem related to any tenant, make sure to include everything in the contract to protect your rights, and the tenant’s rights, this way you can invest in real estate with zero worry.
Fund and market
Another problem which can face you when you invest in real estates as a homeowner is the changes in the market and the funds, you need to keep your investment worth renting and to make it cover all the bills it requires when you don’t have a current tenant to pay this bill for example gas bills, electricity, water, etc., all these bills you are responsible for until you find a tenant.
Market and price changes
As a homeowner, you are affected by the market and price changes that happen frequently in the market, you can find yourself owning an apartment in a place nobody wants, or you can find yourself owing an apparent with less value than the money you paid for it in the first place.
Technical flaws in the building
There is also a serious technical defect that can happen to any property, which could cost the homeowner a lot of money to fix because of legal necessity before he can put it for rent, which reduces both the expected profit margins offered for rent until all fixes are done.