Everyone knows that one of the best ways to earn passive income on a monthly basis is by owning a Cape Coral rental property. It can be an exceptionally lucrative pursuit when you have an experienced property manager on your team.
There are some property owners, however, who would rather do the job of managing their Cape Coral rental property themselves. They become DIY landlords. It is quite common, however, for many DIY landlords to quit. Here are five popular reasons why they end up loathing the job.
- You will likely have to be the “bad guy”
You are probably renting out the units in order to turn a profit. In order to be a successful landlord, you must make sure that is the most important variable and that all variables serve this main purpose. Many landlords are not assertive in tracking rent and late charges. A good property manager won’t hesitate to collect these.
Do you know what to do if the tenant simply stops paying their monthly rent? What if they also start to ignore your messages, letters, emails, calls, and/or texts? You will need to document your efforts and you will need to start eviction proceedings.
Of course, you are only doing your job. But to some tenants, they might think they are being victimized just to avoid accountability. And so, DIY landlords risk looking like the bad guy in a lot of situations. This can take a toll on your self-esteem, as nobody wants to look like the bad guy.
- Having to deal with a lot of lies
Some tenants just prefer to do things that make life hard for DIY landlords. Instead of paying their rents on time, honoring their leases, or respecting the rules and regulations, they end up lying. A lot.
It’s not really an issue for DIY landlords who can easily sniff out who’s lying and who’s telling the truth. Tenants who are notorious liars can become tiresome to deal with constantly, however. In some cases, it can even make DIY landlords distrustful and cynical.
Screening a tenant to see how well they have honored their obligations in the past is probably a good predictor of how well they will pay their rent in the future. A good property manager will pull tenant’s credit and might not rent to someone with a credit score below 600 and/or a history of evictions.
- There is hardly any time for a break
Having a rental property might be a good source of passive income, but being a landlord is not a passive job. You must be available 24/7. You need to be able to see to your tenants’ needs, make sure everything is alright, and disputes are to a minimum (and if there are any, they are swiftly settled). Landlords need to be on top of everything all the time.
And so, DIY landlords are prone to feel like they just can’t take a break. Going on a holiday is virtually impossible unless they find somebody trustworthy and capable enough to take over for the time being. And in the off chance that they do get some down time, this will still be most likely spent thinking about property management manners.
- Post-eviction work can be stressful
Nobody likes having to forcibly evict people out of their homes even if some of them deserve it. It is something that needs to be done and landlords need to have the stomach for it. The thing about evictions, however, is that making people move out is just the beginning of a long and stressful process.
Belongings might be left behind. As such, landlords need to know how to dispose of these properly and legally. The property must also be cleaned and readied for prospective tenants. This can be time-consuming work. And once everything is done, landlords must be ready to restart the application process for tenants once again.
- It can be hard to enforce leases
One of the biggest things that can make landlords look like bad guys is enforcing leases, especially when the tenants are hard-headed and stubborn. When push comes to shove, there is just no other choice but to enforce leases with an iron fist.
If they are not experienced enough, DIY landlords might find this task extra challenging. And the worst-case scenario is that they might not be able to enforce leases effectively. That can result in losses and even negative cash flow.
It is best to leave it to a property manager
You can avoid all these situations by hiring a property manager. It is an added investment that is worth it in the long run. You will be able to enjoy steady passive income without having to deal with rent collection, property marketing, accounting, maintenance, and tenant selection. Let your property manager do the rest.