Attributes of a Successful Landlord

What does it take to be a good landlord? Does being a “good” landlord mean you will be successful? When you buy a rental property, you hope that your property or properties will someday pay off big for your financial future. In this article I will talk about some basic attributes that will help to contribute to your success as a landlord, and why it is crucial to understand that you must manage your rental property like a business rather than a hobby.

Implementation of systems and repeatable processes is a must when being a landlord or property manager. Detailing these systems and processes out in an operations manual will provide you with a guideline on how to react when situations arise. As you learn through experience these manuals should be updated and refined. It’s not if situations arise, but when they do, and you must be ready to deal with what comes up. Without systems and procedures in place, you will respond to situations in a reactionary manner which can potentially land you in trouble or cost thousands. Systems and processes create consistency and simplify decision making, while saving you time and money helping to create financial stability. Knowing how you will operate when issues arise will help to maintain your cash flow and predict the needs for your property. This in turn helps to be proactive in addressing issues before they come up rather than reactive to issues as they arise.

Should you accept calls and texts at all hours of the day and night? Should you have to constantly get after tenants for following the rules, chase rent, and deal with difficult evictions or damaged properties? No, you shouldn’t. Implementing systems for how the tenant should make rent payments, execute documents, and request maintenance is something a good landlord will seek to provide. Providing a tenant handbook is another system that will help to improve your status as a landlord. This will help increase tenant satisfaction as they reference the handbook to quickly get the information they need, and understand the guidelines for the home. With a handbook a tenant can quickly reference things like their ability to paint a wall, or hang a tv, or what they need to do if they want to get a pet.

Being firm but fair with your tenants is another key component to your success as a landlord and property manager. One thing that can get you in trouble with your tenant is being too nice. Being fair and being nice are two very different things. You can be polite, but you must adhere to the lease contract for both parties. Once you start bending the rules you open up a can of worms that can lead to more requests, unhappy tenants when you say no, or the potential of liability for allowing things that are prohibited in the lease for a reason. If you deviate from the lease, providing a quality service becomes increasingly difficult. The keys to providing good customer service lies in being respectful to your tenants, being responsive to their needs, and maintaining the home.

Lastly, as a property manager or landlord you must be familiar with the rules and laws in your jurisdiction that govern landlords and tenants. There are fair housing laws, landlord tenant laws, as well as local laws that if not followed will land you in trouble. This is one of many key reasons people hire property management companies to lean on in the management of their investment home. Keeping up to date with changes in housing laws can be cumbersome and time consuming if you’re not already in the real estate industry. There are resources online that can help to provide answers to your questions, but making sure you adhere to the laws is a must. If you manage the property yourself make sure you are following the rules and laws for your state and jurisdiction.

These are just a few examples of why running your rental properties like a business is so important. If the items mentioned above are not something you feel you can handle in a professional and efficient manner, leaning on a good property manager is the best solution who will ensure your success and take the burden away. If you do choose to take it on yourself, take it seriously, put in the time and effort to iron out your systems and learn the rules and regulations for handling tenants in a professional manner. If not, you will struggle with managing your rental property which will cost you time and money, as well as being a burdensome task.