Beginning investors are often so focused on the purchase of their first property, that they are not planning for their future title of a landlord. They can quickly become overwhelmed with the sheer amount of work involved in servicing tenants. Here are 7 Great Tips To Show You How to be a Successful Landlord
1. Add a Rent Collection System
If you’re planning to stop by the house and collect rent from each tenant physically, that’s not the best use of your time. It’s time-consuming and inefficient. You should be checking out electronic payment systems that will draw the money automatically from the tenant’s bank account or use a portal that will allow them to make payments.
2. Make Sure You’re an Educated Landlord
If you don’t know the answer to a problem you’re facing, don’t wing it. Instead, read everything you can about property management. Take a course, read a book or find a forum with knowledgeable people. Educate yourself in all things that could go wrong with your property and tenants.
3. Policies for Your Tenants
Running your business without having plans and policies in place is like trying to drive a car without knowing the rules of the road. Tenants will know that you’re making up the rules and policies as you go, and they’ll have less respect for arbitrary rules you make up on the spot. Instead, sit down and write up your policies in a booklet you can give to your tenants. They won’t question a policy that is written down. You can always refer them to the policy in writing too.
4. Quality Equals Quality
When you have a quality product like a great space you’re renting, you’ll attract and keep quality tenants. You don’t have to provide granite countertops and high-end hardwood floors, but you should ensure that your home is better than the average home out there. Along with the home itself, your professionalism, attention to detail and prompt response to problems will attract quality tenants.
5. Late Fees for Tenants
Late fees are not cruel policies meant to put the boot on your tenants. They’re a way to ensure that tenants make paying their rent on time a priority. When they don’t pay the rent on time, you have the added compensation to relieve some of the stress over late payments. Make sure every tenant knows about the late fees in your policy booklet.
6. Organization for Your Sanity
Procedures, policies, and accounting should all be organized to keep your business running smoothly. A clean office can help you stay organized on all fronts. You’ll have access to maintenance contracts instantly as well as tenant information and rental agreements. It’s one of the most important aspects of running a successful business.
7. Outsourcing
Whether it’s the repairs or the entire property management itself, you should know when to outsource. If you’ll spend half the day trying to do a repair on a toilet, let a professional do that for you quickly. You’ll save money in your time alone. If you have more than one property, a property management company can deal with tenants, fill empty units and call for those repairs.