Nov 22, 2017
Being a successful landlord comes with a lot of responsibilities that most people feel like they are not ready to handle. However, this blog will offer realistic advice that you can use to become a successful landlord.
Treat your rental as a business
There are probably many reasons to why you decided to become a landlord, and one of those reasons will likely be for the money. Many people do a terrible job because they fail to run their homes like a business and instead look at it more like an extra-curricular activity. Once you start running your property like a business, you get a better understanding of what things are needed and even ways to cut down on costs to give you a better profit each month. Factors like advertising and keeping a monthly account book if forgotten by new landlords.
A further tip is to take the initiative and read a book on how to run a business which will allow you to learn new things like setting aside 5-10% each month for any repairs that may occur in the future.
Have a lawyer present
Lawyers might sound scary however they’re essential in helping protect you. With issues such as making a contract for your tenant, you need to make sure that there is nothing illegal in the agreement that could get you or your tenant in trouble. Just making a phone call to a lawyer could potentially help you to save money on any legal fees that may occur in the future.
Know the type of tenant you want
This may sound a little obvious but selecting the correct tenant is very important if you're going to be a successful Landlord. The first thing you need to do is figure out what type of tenant you are looking for. If you’re looking for families, then you might need to consider areas where you could spend a little extra money to make your property attractive to them. If you’re looking for students, then be aware that they tend to sign six month/1 year contracts so be prepared. A further tip is to use Housinganywhere.com. On the platform, you can get your property booked months in advance, and if the tenant cancels last minute, you are entitled to the first month’s rent.
Selecting the correct tenant
As well as knowing what type of tenant you want, it is also important to know how to find the correct tenant for you. Many variables are involved such as ‘what type of questions to ask them’ and ‘making sure to check their reference.' Check out this article on Homesgofast.com that will give you more useful tips on how to successfully select the correct tenant.
When you think of your property as a business, you learn that documentation of everything you or your tenant says will become an important activity. Contract signing must then follow any verbal agreements you have with your tenant. You can't prove anything oral, however, if you have everything on a piece of paper, signed and dated, it will save you the headaches.
Treat your tenants with respect and don’t be too nice
Most people think that being respectful and being nice are the same thing. However, this type of thinking will only leave you at a disadvantage. Your role as a landlord is to be fair and rational in your thinking, but 'nice' is not necessary. Being nice will only open doors that will invite your tenant to walk all over you. This could be by paying rent late or not respecting certain rules that you put in place. When you say ‘No’, your tenant should be able to respect your decision and walk away. However, this doesn’t mean you should be harsh or disrespectful. You need to find a balance that suits you and in doing this, you will save yourself from any future loses.
Don’t be afraid to ask for help
There are many landlords around whether that may be in the neighbourhood or online. Whatever your issue is, don’t be afraid to ask for help.
A successful landlord is someone who is in control and does not get stressed out at every situation. It’s someone who realized that being a landlord is not simply a ‘part-time’ job but a career that they need to put at the top of their priority. Success is possible for any landlord if the correct decisions are made and the correct steps are taken. Remember, you’re running a business that needs to be profitable.