Becoming a landlord is a tough job. Not only you have to deal with property management, but you are also responsible for the safety of people living in your home. It is true that you will make money in the long run. However, in the beginning, you must focus on the legal aspects of becoming a landlord. This step is tiresome for new landlords. From property repairs to signing contracts, you have to do the entire work; it may seem like you have taken a new job.
You cannot save yourself from these tasks, but you can live a stress-free life if you choose the right people for your home. 9/10 problems can be avoided if you have great people renting your home. Vice versa, 9 out of 10 problems are generated because of problem tenants.
Solving this step requires wisdom, expert advice, use of intuition, and personal experience. The way you judge and make friends with people will often affect your ability to find quality tenants. While you figure out your way, I would like to share mine with you.
It is best to record business conversations in a contract. In the world of property management, we call it a lease contract. Although a standard contract is a good place to get started, I am not talking about the copy-paste method. You should get the standard template, but you must customize it for your property. Write details carefully. Make your job clear, write the exit strategy and make sure that your tenants understand their responsibilities. A successful business relationship begins when all parties meet their obligations. A clear-cut lease just assures you of that.
As a landlord, the safety of your tenants should be your first concern. Making repairs is your job. When a tenant asks for a repair, immediately check your calendar and reserve a spot in your schedule. Ask your residents what time works for them and send your contractors on that time.
In the case of emergency, immediately call the technicians to fix the issue even if it costs extra hundred dollars.
The real estate business is not about selling or purchasing land. It is about emotions and dreams. When you think of the business that way, things become clear, and you achieve success. Some landlords view their tenants as a source of income. Others believe in the power of friendship and empathy, and they are the ones who succeed in the long run.
Listen to your tenants and empathize with them. Get to know them on a personal level before you ever start working with each other. Look for common points of interest and write down what you appreciate about them. This step will reveal information that nobody can give you through a lease contract. You will know your tenants, and they will understand you as a human.
Just like landlords, tenants have their rights. Tenants expect you to understand their rights and your responsibilities. Grab a copy of local laws & regulations and read them at least twice. You do not want to annoy a great tenant because you were unfamiliar with their rights or local laws.
From time to time, residents will face difficulties, and they will need your help. It is the nature of life! Be accessible and encourage open communication for all matters. Your tenants will appreciate your responsiveness to their problems, and they will provide quick communication whenever you need their help (in collecting rents).
As a landlord, you can do various things to welcome the new family. You can prepare a new address sign that they can use for their new residence. You can personally write a welcome letter. Invite them in the home. Help them adjust to the new environment. I just want to say that this step is necessary! Be creative and focus on your tenants and see how you can help them.
There is a fine line between friendship and professionalism. Friendship can make you compromise on your terms, but a professional stays true to his/her profession. Being a landlord, it is your job to ensure that tenants are safe in your home. However, you cannot forget to collect your rents. You should never compromise on that step. Immediately call your tenants if the rent is late and make sure that both parties are fulfilling their duties.