When you’re a property investor, you also have to be a landlord. This is something that you can’t escape from. Renting out homes is certainly a good way to make money and earn a living. But you’re wrong if you think that it’s also an easy way to do it. There is so much work and skill that goes into being a full-time landlord. It’s not a walk in the park for anyone, and you should be aware of this.
So, what do you need in order to become a good and successful landlord? There are many different answers to that question, and you should be aware of them all. That way, you can start to put the right things in place for your property investing efforts. Read on to find out more.
To start with, you need to have some top-quality rental properties. These are what tenants are going to be interesting in. Nothing else really matters when it comes to clinching a deal with a potential tenant. If you’re thinking about which properties to invest in, you can learn more from Bridgfords. Browse all the options and think carefully about which properties and locations will be most popular with people looking to rent a home. If your properties are not up to scratch, then you will never become successful as a landlord. This should be your main focus to begin with.
The Ability to Keep Tenants Happy
You have to be able to keep your tenants happy and on your side when you’re a landlord. You don’t want to fall out with them because then the relationship can become very difficult. When your tenants are happy, then you will be happy too. Treat them with respect and keep your distance from them when there are no issues to be addressed. Most tenants don’t want to be friends with their landlords, so keep the relationship professional. This is the best way to have a long-term tenant-landlord relationship with someone.
A Round the Clock Work Ethic
When you’re a landlord, your work is never done. It is a round the clock kind of job. A tenant could call you at any time with a question, problem or complaint. And you have to be on your toes, ready to respond to each and every one of these potential problems. If you’re not, then your tenants will become disgruntled and they could decide to move out. That will make it impossible for you to become a good landlord. Remember, whenever your investment property is unoccupied, you are losing out on money. So, it makes sense to work hard and meet your tenant’s needs.
DIY Repair Skills
There are so many things that can go wrong in your rental property. Whether these are regular maintenance jobs or problems caused by tenants, they need to be fixed quickly. As the landlord, it’s your job to make sure that the house is kept in good shape and is safe to inhabit. So, when a problem occurs, you need to go to the house and sort out the problem as soon as possible. If you have some basic DIY repair skills, this kind of issue can be addressed much more effectively and sorted quickly. It’s much cheaper for you than having to hire a handyman who can carry out the work.
A Head for Numbers
All types of investments come down to numbers. You can’t be a successful investor or landlord unless you’re making money. That’s why you’re going to need to have a strong head for numbers if you’re going to succeed as a landlord. You have to work out the rental yield on a property to work out how profitable your investment is going to be for you. And it’s always important to maintain a spreadsheet that tracks all the expenses you incur. All those repairs and fixes add up over time, and they will start to eat into your profit margin too.
There are lots of legal challenges that you’ll come across when you’re a landlord. Tenants have rights, and landlords have rights too. And it’s vital that you follow the letter of the law when you are renting out a property to people. You can’t just enter the home when you have rented it out, for example. And you can’t kick people out of their rental home and break the tenancy agreement either. It’s a good idea to hire a lawyer who you can work with whenever one of these legal challenges arises for you. You will probably get lots of use out of them, so it’s worth it.
Policies for Late Payments
You are never going to find a tenant that’s perfect. That means that you will probably experience late payments of rent at some time or other. You don’t want people to take advantage of you by regularly paying late. But you don’t want to come across as too harsh either. The best thing to do is make your policies clear to your tenants. Of course, those policies will be decided by you. But it’s a good idea to give people a warning for the first time they do it. And then make it clear that there will be fines added on top of the rent if this is something that happens again.
Compassion and Understanding
Last of all, you will need to have a degree of compassion and understanding. There is nothing worse than a ruthless landlord that treats their tenants like dirt. That’s not the kind of landlord you want to be, and it’s not the route to success either. If you want to do well, you need to treat people in the right way. You will get your payments on time and find it easy to get tenants when you are friendly and show compassion. Sometimes, people will make payments late. But this is probably only because they are having financial difficulties. Try not to come down too hard on people who are struggling.