Being a landlord can be both rewarding and a pain. On one hand, you get to enjoy a good stream of income that is further enhanced by the fact you are paying away a mortgage on a property that is gradually increasing in value. On the other hand, you have to deal with tenants who feel the need to contact whenever a problem crops up with the housing and may at times pay late. To be successful in this business, there are certain practices you need to adopt so as to ensure that you enjoy more of the positives of being a rental property owner than the negatives.
- Offer good product
Before you advertise a vacancy in one of your units, ensure that what you are offering will attract good tenants. It is not just the solidity of the structure, but also all the furnishings and fittings. When you invest in good quality finishing of the property, there are less likely to be breakdowns or other damage that will cause your tenants to keep calling you to fix.
- Pick good tenants
The best way to enjoy a hassle free, or minimally stressful tenure as a landlord is to pick good tenants. Ideally, you should seek those with a reliable source of income and a good track record as tenants. A well drafted tenancy agreement should take care of the rest. Property management firms tend to be better equipped to look into the background of prospective tenants so consider hiring them to take care of this selection.
- Know when to outsource
Depending on such factors as your DIY plumbing skills and the number of tenants you have, you may want to consider outsourcing your property management. Many first time property owners can do well without this service if they have few good tenants in a relatively new property. if the situation is however more complex, having a professional step in and take care of the handling your tenant needs is a good idea.
- Keep it professional
If you decide not to use a property management firm, then that means you will have to have direct contact with tenants. Keeping relations cordial is all well and good, but remain professional. Too much friendliness may lead to problems like tenants thinking they can explain away lateness in making payments. Keeping things professional means that when you talk business with tenants, they know to take you seriously.
- Track everything
Proper record keeping is very important to the success of any business. In order to know where costs are increasing or if there are delays in payments, you need to be very organized and keep consistent record of invoices and receipts. Being able to reliably put together your accounts can help you strategize on how improve the business as you move forward.
All these tactics are designed to help landlords retain their tenants’ long term, while making the work of being a landlord stress free. With long term tenants, you can look forward to a continued remittance that will help to deal with any expenses that crop up. Being a good landlord to good tenants will make for a rewarding investment.