Top 7 Issues that Rental Property Owners Face, and weren’t prepared for!
It has been said thousands of times by thousands of people, Property is a sound investment, it is cash flowing and it appreciates. Due to the “perfect” nature of property as an investment, thousands of people every year become landlords! It starts off as a magical journey, one milestone on the path to financial independence. But so many landlords are not prepared for the complexity of being a rental owner.
Now don’t get us wrong, we are not trying to scare you away, we are simply trying to prepare you. If you find yourself lost in property ownership, worry no more, RentPERKS has spent years perfecting solutions to each and every one of these common issues.
Let’s dive in.
“Surprise” costs and negative cash flow
Your property is ready to rent, you find the perfect tenant, you are so excited you can kick back, relax and the rent will just roll in.
Sorry, but probably not, most people assume that rent minus mortgage payment equals cash flow. This isn’t the case in fact you can expect about 50% of the rent payment to got to non-mortgage expenses. This could include vacancy, repairs, maintenance, insurance, property taxes, capital improvements, and the list goes on.
This is why it is crucial to calculate these numbers up front, so there are no surprises later. Having a property manager in place will ensure that the rent you are collecting is more than enough to cover all expenses. RentPERKS excels in this area, we inspect your property find quick wins to get you above market rent. This is one way RentPERKS Rents better. Anywhere.
Rent Collection and Defaults
Here we are going to put a damper on your journey to Financial Freedom. Tenants are not always the most reliable, you have done your due diligence and feel you found a reliable and honest tenant. Things happen, even the best on paper tenant may not pay on time or even at all. Due to the ever changing landscape of the regulations surrounding tenant laws, governing bodies have built in some collection hurdles.
We have spent years curating a vast, nationwide tenant network. In fact, they are considered the top 25% of renters in the country. How have we done that? RentPERKS has an unmatched top-tier reward system, we reward our renters for good behavior, which turns them into great renters. Our tenants receive rewards for things like paying their rent on time, staying in our properties longer, and keeping their place clean. Renters love it, and the longer they are RentPERKS Renters the more rewards they receive. RentPERKS Rent Better. Anywhere.
- Slow Costly Evictions
Evicting a tenant that is in violation of your lease agreement, seems like it should be simple and straightforward, I mean you had an agreement, and they didn’t hold up their end of the bargain. Wrong, it is not as clear cut as it seems, there are regulations in place, that make tenant eviction a long, drawn out and sometimes painful process. And what we often think is an “evict-able” offense often is not so. Disappointing right?
On top of that, you have waiting periods, tribunals, long waits, forms to fill in, rules to follow, then appeals. It is a never ending, frustrating and costly experience. Oh and did we mention, after succeeding, you need to get an order for the eviction and yet another order to get the money. And having an order to collect is one thing. Garnishing wages and goods is expensive and often ends in frustration.
How does RentPERKS solve this nightmare? It all starts with the correct selection techniques and better leases. Selection needs to be supplemented by advanced data analytics, something we run over every tenant. And, yes, sure there are standard leases but you have to go beyond them. We have additional and special clauses that simplify the process and maximize recovery of cash. You also need to act quickly. How? By identifying the problem before it arises. We have progressive risk assessment based on observable tenant data. Seeing something coming helps a lot. Finally, when all else fails, be pragmatic and negotiate well. There’s no point being ‘right’ when you get no money.
- Tenant Damage
This is another huge problem for Property Owners, tenant damage can be a huge issue, whether it is malicious or just careless. It is not uncommon to find doors with holes, walls with holes, stains on carpet, damaged countertops and cabinets after a tenant moves out. Heck we even heard of malicious tenants putting concrete in the drains.
Tenant damage can be one of those hidden costs you never thought to work into your budget. RentPERKS mitigates this issue by performing regular property inspections. We have agents in the field across the nation, they visit your property and conduct inspections ensuring your investment is protected. With our vast curated network of best-in-class renters, our hands on property inspections and our thorough tenant screening process, we have found the perfect equation to ensure tenant damage isn’t a problem you have to deal with.
- Vacancies and Tenant Turnover
Tenant turnovers and vacancies are a necessary evil in this business, even the best long term tenant may leave. During your career as a Rental Owner you will face a vacancy or twenty. The tenant turnover process can be irritating to say the least, the cleaning, any repairs, the maintenance and the screening of new tenants can be a hassle you don’t have time for.
RentPERKS has taken tenant turnovers by storm. We have conducted inspections and performed maintenance throughout the term of the lease so the preparation for a new tenant is minimal. With our vast tenant network and stringent screening process, we will have an exceptional tenant ready to move in in no time. RentPERKS Renting Better. Anywhere.
- Maintenance and Contractor Repairs
Rental properties require some TLC from time to time. You may need to replace a toilet, repair a roof, replace a furnace, stuff happens. It is your responsibility to the tenant to have these repairs and maintenance completed in a timely manner. When it happens it can not only be a drain on your bank account, but also a drain on your time. Setting aside time to do the work yourself, or hire a professional is not something you prepared for. Oh ya and we didn’t mention making arrangements with the tenant and contractor to find a time that works for both of them, this can be a daunting feat.
RentPERKS has a state of the art Property Portal and app, that allows tenants to report any issues immediately. But it doesn’t stop there, we get the report, work with the tenant to ensure that maintenance is actually required. Once we have verified the issue, we contact a qualified contractor and have him dispatched to the home to complete the work. We take away the hassle by streamlining the process. Our owners portal is so great, you can even watch the progress from your Lazy Boy!
- Local Ordinances and Rental Regulations
This one is tricky. The landscape of ordinance and regulations is very tumultuous and difficult to navigate. Laws are changing all the time and it is necessary for your protection that you are on top of them. Whether it is at the Federal, Provincial or Municipal level, there are several very intricate regulations and laws that you must ensure you are compliant with. If have never been called to the Bar, this is not easy. They are difficult to understand and may or may not be superseded by some other regulation you have never even heard of.
RentPERKS is in the business, in fact, it is all we do. We must remain on top of all the changes and new laws to ensure the protection of both our Owners and Renters. Image a property manager that says “Hey, they passed a new regulation in the town one of your rentals is in, I checked it out we are fully compliant.” This is the kind of protection and peace of mind you should be getting from your property manager, are you? RentPERKS Rent Better. Anywhere.
As you embark on your journey as a rental owner, we hope this will set you up to achieve success. It is a very fulfilling path, but as with anything good there are bumps in the road. That is what lead us to build RentPERKS.
We began our planning and development after years of frustration in the industry, both as Landlords & Tenants. Driving us to re-envision the service delivery process, embedding automation and AI, integrating card processing for rent collection, incentivizing Tenants for the right behaviour with unmatched in the industry rewards (at no charge to them). Providing Landlords, the Transparency and Accountability they expect, right at their fingertips.
RentPERKS is changing the relationship between Tenants and Landlords in the most effective way possible: by rewarding good behaviour of our Tenants and providing exceptional service to our Landlords.
We handle everything to do with your property, from tenant screening and acquisition, to rent collection, to maintenance, to legal, we have you covered completely all in-house! If that isn’t enough, we have everything all laid out for you to view in real-time on our Owners Portal and your App. You can view monthly statements, ads, property performance, tenant leases and much more directly from the comfort of your own home. With RentPERKS that dream of perfect property investments is just a click away!