5 ways of becoming a top Landlord in 2016
If you want to be a top landlord in 2016, there are 5 ways that will help you be the very best landlord you can be.
Run your business like a business
One of the biggest barriers to landlords enjoying success is the fact that they don’t consider what they do to be a business. Many landlords try and operate their business like a hobby, and this inevitably means that poor decisions are made, some decisions are not made at all and customers are not receiving the right level of support.
If you are looking to be a success as a landlord you need to research your market, you need to examine what successful landlords do and you need to think about value for money. You also have to have systems or support in place that will ensure that even if you can’t help out directly (you could be on holiday at the time or away from home on another matter), the tenant will be able to resolve an issue.
Even changing your mind-set from operating as a hobby to a business can have a huge impact.
You have to vet the tenants
All of the other tips could probably fit under the treating the service as a business, but when it comes to making the most of this investment opportunity, the quality of your tenant is crucial. If you are unsure of what to do or where to begin with respect to vetting tenants, call on the services of a leading estate agent or property management company.
A comparison can be made with how a bank treats customers that apply for a loan. A bank doesn’t make decisions based on emotion, they undertake research and they review what a person has to offer. This allows the bank to make a decision that is right for its needs, and a good landlord will do the same.
Some things you should look out for when it comes to being a good landlord includes:
- Ensuring the tenant earns more income than the rent, around three times is a good level
- Ensuring the tenant has stable income
- Checking previous landlord references
- Check that the tenant hasn’t been evicted
- Checking that the tenant doesn’t have a criminal record
Vetting the tenant gives you a greater level of confidence in who you are letting the property and it will increase the likelihood of receiving money on time and in your home being cared for in the correct manner.
Another problem that some landlords have is that they think that they are doing their tenant a favour. This is not the case. A landlord provides a tenant with a service, a service which the tenant pays for.
Businesses don’t need to like all of their customers, and you don’t need to like your tenant, but businesses should respect their customers and you should respect your tenant. This means a landlord should be courteous, they should respond when asked a question, they should respect the tenants privacy and they should follow all agreed rules, guidelines and regulations.
Don’t be too nice
While you have to be fair and respectful to your tenants, you can’t be too nice or too forgiving. You are running a business and you should follow the agreed rules. This means having rules in place in the first place and then adhering to these rules. Too many landlords have attempted to be nice and provide tenants with some leeway only to find that tenants have taken advantage of their attitude.
You don’t have to be loved to be a good landlord, just do the things that you agree to do and make sure you provide the services you say you will. Anything beyond that may see you compromised.
If you are looking to provide the best standard of landlord service you can, realise that you can’t and shouldn’t do everything by yourself. Whether this relates to carrying out electrical work or repairs around the property or having an inventory list drawn up, there are times when calling on an independent professional is the best way to care for your tenants while ensuring your own needs are taken care of.