Landlords and property owners often find themselves overwhelmed with unexpected problems. Even though owning a home or apartment building seems no different from managing a person’s own home, that’s not always how it goes. That’s why, as a property owner, it’s important to be ready for unplanned events and unexpected problems.
What Can Go Wrong?
It’s not always easy to see the possibilities of what can go wrong when owning property. Even if the home is in good condition and the tenants are well-selected, dozens of problems can occur. Take into consideration what could happen:
- Tenants conducting illegal acts or conducting illegal businesses
- Animals being brought into the home
- Tenant arguments
- Domestic disputes
- Neighbor problems
- Not taking care of the property
- Letting others live at the property
In some cases, tenants know how to use the legal system to limit an owner’s ability to control such situations. That makes all of these concerns not only problematic for managing the property but also legally complex.
You Have Two Options When Investing in Real Estate
It’s critical to view your investment in this property as a true business. You are not just a housing provider. That means you’re responsible for everything that happens on the property and with it. With that realization, you can begin to make decisions about how to plan for these problems and how to manage them when they occur. You have two main options to choose from in this situation.
#1: Figure Out How to Handle the Problems Yourself
This is the obvious solution. As a problem arises, you deal with it. You learn as you go on how to manage these situations and deal with them in the best way you can. For example, if you have a tenant dispute with a neighbor, you’ll need to navigate the problem on your own, often finding a way to settle the problem in a way that satisfies both parties. You may need to hire an attorney. You may need to reach out to the authorities if situations get out of control.
#2: You Hire a Property Management Team to Do it for You
The second option is to view yourself as an investor. In this way, you own the property, but you hire a property manager to handle the complexities of these relationships and requirements. You can work to build your wealth in this situation and not have to worry about the petty complications that come up when owning an investment property. Property managers have years of experience managing these situations and, in some cases, can foresee potential concerns to prevent them from happening.
In this situation, when a problem comes up, the property manager gets the call and finds the solution. This may mean, for example, dispatching a plumber to the property to handle the burst pipe. When you take this step, you benefit from a better quality of life (you don’t have to manage the problems), but you also end up relying on those with exceptional experience to make the right decisions for you.
You can try it yourself. That’s often the best first step to take. Learn what it’s like to be a landlord. Then, if you want to hand over some of that responsibility and act more like a property investor, that’s when you want to turn to a full property management Toronto company to do the hard work for you.