5 Reasons Private Renting Can Be a Bad Idea

Private renting can be much more difficult than renting from a management company. A private owner will not have the same financial resources, maintenance contacts or time to invest in resolving problems on the property.

1. Extended Time to Resolve Maintenance Requests

Unless a private owner maintains the property himself and has flexible days, it will take longer for him to resolve maintenance problems than it would for a management company. An apartment complex usually has full-time maintenance staff on the premises five to six days a week, making response to broken pipes or appliances quite quick. In contrast, a private owner will have to contact a repair man and schedule the repairs, which will make fixing problems take a longer amount of time.

2. Less Flexibility

A private owner must pay a mortgage on a certain date and most likely will not have the funds to cover that expense without your rent payment. Because they are larger and will have more cash reserves, a management company will not have this same problem. In an apartment complex managed by a company you may be able to wait until the fifth day of the month to pay rent and not have to pay a penalty charge. This may not be true in a property owned by a private individual. Tenants with cash flow problems may have difficulties with paying exactly on the first of the month.

3. Non-Standard Contracts

Rental contracts for an apartment governed by a management company’s rules will be rented using the state’s standard rental contract. Such a contract will have been approved by the legislature and contain the legal necessities to protect both tenants and landlords. A private owner may not use this contract, making your agreement more prone to future disputes. Additionally, a state-approved rental contract will contain guidelines for making addendums or changes to the original lease terms. This means that any reductions in rent or special privileges you are given by the company will be in writing and indisputable. A private landlord may not write down these changes. To avoid this problem, insist that the private landlord use an approved contract and write out all supplementary changes.

4. Less Capable Hands

In a situation where a private landlord lives in a different state than where the rented property is located, he may decide to hire a caretaker. This caretaker could be anyone from another individual, a family member or even a real estate management company. The caretaker would be responsible for collecting rent payments and making repairs. There is no guarantee, however, that such a caretaker will suitably maintain the property.

5. Possibility of Selling the Property

At the end of your lease with a private landlord, he may decide to sell the property. This would mean that you would have to move, possibly sooner than expected. A private landlord could also request that you permit him to show the residence to potential buyers, requiring you to keep the space neat. If a management company decides to sell the apartment complex, chances are that your lease or lifestyle will not be affected.