Those who have chosen to invest in real estate make up a diverse group of people buying property, renting it out to others, and playing landlord. Usually, the success of a rental property hinges on the landlord’s unique abilities and character traits. Landlords who fail to offer fair prices, great customer service, and other top-notch qualities have a difficult time filling vacancies and retaining tenants.
Whether you’re just starting as a landlord or you’ve been doing it for years, it can be helpful to observe other successful landlords. Here are some of the traits you’ll see in the best.
According to the top Houston property management firm, Green Residential, staying organized helps you to effortlessly reference paperwork when needed and attend to legal matters easily. More importantly, it can help you improve profits.
“Organization can…help you improve your cost analyses,” the article says. “If you keep detailed records on everything financially relevant, including your income, ongoing expenses, and periodic unusual expenses, you’ll be able to make better forecasts, and better estimate which of your properties are most profitable.” You’ll notice other major benefits of organizing as you implement it into your daily routine.
It might seem like a daunting task to reorganize your business, but it’s something you won’t regret. Once you’ve developed a great system for running your business, it will streamline your entire operation.
The landlord that operates as if there are no other people involved will always end up losing the tenants in the end. A good landlord knows the value of respecting a tenant’s right to space, privacy, and property. Even if the tenant is disrespectful, you should always be respectful back.
This involves being considerate of the people living in your units. You shouldn’t come over without calling (unless it’s an emergency, of course), you should honor the lease agreement, and you shouldn’t overreact to mistakes.
Respecting the tenant does not mean that they can walk all over you, violating the rules and making late payments, without punishment. It’s about being fair, not being a push over.
3. Business Savvy
Sometimes, you’ll find a landlord who says that they’re only renting out properties because they want something to do. However, this mentality won’t last long because real estate is a business, not a hobby.
If you’re serious about being a landlord, you’ll develop a business plan.
“Treating real estate like a business means approaching real estate systematically,” advises Andrew Syrios, real estate and financial expert. “It involves learning from mistakes and adjusting your systems to avoid such mistakes in the future.” The system you choose need not be as rigid as some small businesses use, but it should be in place.
“… A haphazard approach will cost you in every area of real estate, be it acquisition, marketing, negotiation, rehabbing, selling, financing, accounting, leasing, collections or maintenance,” Syrios continues. “A systematic, business-like approach that separates the personal from the professional is essential.”
In short, treating it like a business from the start is the best way to see profits from the beginning to the end.
There’s nothing more upsetting to a tenant than a landlord that won’t return calls—except maybe the landlord that shows up for a 3-day renovation without having called first. A good landlord will maintain steady and consistent communication with their tenants. There won’t be unpleasant surprises because the tenant has been kept in the loop at all times.
You don’t have to talk to your tenants over every mode of communication. You can choose to message them solely by phone call, text, or email. Unless it’s an emergency, most communication can occur without an immediate response, and both you and your tenant will be pleased with the result.