Managing your property and acting as a landlord can be a great way to make money. Depending on where you live, you should be able to collect more rent than you pay each month – and in some weeks you don’t have to do anything.
Nevertheless, the landlord is also a stressful and time consuming job. You are responsible for ensuring that your property remains in use and that it is in good condition. You need to resolve conflicts and deal with emergencies. You also need to shuffle to get a new tenant when this one leaves.
So how do you cope with the stress of being a landlord?
Hire a property management company
One of the best options for reducing stress is rental property management company. The property manager takes most of your responsibility. They are responsible for marketing the property, collecting tenant applications, and screening tenants, servicing, handling repairs, and even guiding you through the eviction process, if needed.
The only real downside is that you owe the company a percentage of your gross monthly rent. For most landlords, this small profitability compromise is worth the cost.
Invest in good insurance
You can also sleep better at night if you have good insurance. Strong insurance covers your property (if something happens to it) and covers you if someone is injured on your property. Knowing that you have financial protection if something bad happens can almost immediately reduce your stress.
Prioritize tenant screening
Most of a landlord’s stressors are due to a bad (or questionable) tenant. Your tenant may not pay your rent on time (or at all). They can be noisy and annoy other renters. They can damage your property or destroy them directly.
Therefore, part of your stress management depends on the tenant screening process. With a more thorough tenant screening process, you can ensure that more responsible, caring people live in your property. It doesn’t eliminate the possibility of tenant problems in the future, but it minimizes it.
Build a reliable network
Professional networking is valuable in any career, but it is especially important when managing real estate. Over time, you should build a team of experts who can help you in many different areas of property management and maintenance. For example, a rolodex for contacts should have a roofing specialist, a plumber and an electrician. Building the right team and getting to know people takes time, but when you do, you trust that you have a team that can handle any issues that arise on your property.
Keep the property in the best possible condition. Perform regular inspections and home maintenance consistently to avoid the need for major repairs later.
It’s good to automate everything you can. Try to set up automatic notifications of your primary responsibility and allow tenants to automatically deposit their rent from a bank account. The less manual work you have to do and the more streamlined these processes are, the less stressful you will be.
Maintains a solid emergency fund
You can have emergency fund for personal use, but do you have one reserved for your property? If you are blinded to an unexpected repair or serious damage to your property, how are you going to deal with it? If you have several thousand dollars set aside for this purpose, you don’t have to worry about it too much.
As a landlord, there is always the possibility that one of your tenants will try to sue you or claim that you have mismanaged the property. In addition, you must declare your income exactly when the tax period comes. That is why it is so important document everything you can. The more thoroughly you document your work, the more confident you can be that you are doing everything right.
Manage your stress in a healthy way
Finally, take the time to manage the stress that builds up in a healthy way. Make sure you sleep enough at night and eat healthy meals for appetizers. You can also reduce the accumulated stress through physical exercise, meditation, and plenty of time to enjoy your favorite hobbies.
Even if all the right strategies are in place, being a landlord is difficult. You need to design a stress prevention and stress management system that will help you stay calm, clear, and healthy as you continue to manage your property.