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Landlord Advice: Landlords are in the property management business but they just don’t realize it. As a landlord, you deal with tenants who call to complain, or don’t pay their rent and cause problems for other tenants or neighbors. It can seem like you have endless high-dollar property repairs from abusive tenants that looked good at first, but then turn into tenants from hell... Buying rental property and becoming a landlord comes with a lot of headaches, stress and responsibility, and all of these things can turn a well-meaning property owner into a jaded landlord desperate to get out of real estate. I've been dealing with tenants since I was 16 and there are simple things you can do to smooth out tension. Here's some landlord advice: Most landlords over time start viewing tenants as dollar signs, instead of building a lasting landlord tenant relationship. First bit of landlord advice: Creating a good connection with your tenants and marketing yourself as a great landlord has many benefits: * it will make working with your tenant to fix repairs easier * your tenants are more likely to renew – possibly even with a rent increase * if they choose to leave, showing the property to prospective new tenants at the end of a lease will go smoother. I'm sure these points sound good to you, so utilize the following landlord advice: • Customize the Lease: You can get a standard lease form at any office supply store or from your attorney. This will cover basic things like rent, security deposit costs and any legal tenant rights in your state. * Use these basic documents as the framework for your own lease and add any special rules you have for the property, such as a weight limit on pets. * Add as much detail as possible and include everything from late payment fees to maintenance responsibility and tenant’s behavior. Also think about implementing fines for breaking the rules and a section to cover who is responsible if something is broken and it’s determined it was caused by abuse from the tenant. A clear cut lease will reduce friction between you and your tenant during their tenancy and in the future. I have a welcome package that I give all my residents, which is just an envelope with a copy of the signed lease along with frequently asked questions, rules and regulations for living on the property, required maintenance by the tenant and operations manuals for all the appliances. Include a contact list to call to set up all the utilities, cable, telephone, flyers to order food for delivery, an insurance company, and emergency contact information.
See Our Free Rental Agreement • Know the Laws: Each state has a landlord and tenant act that covers rent, security deposits, landlord and tenant obligations, tenant’s rights, and evictions. You can get a copy from the Department of Housing office in your area or online at the Department of Housing website for your state or from your attorney. Get to know these laws well because you’re going to have to use them. Violating a tenant’s rights will at the very least lead to an unhappy tenant and at worst case scenario land you in civil court which will cost you a lot of money. • Make those Repairs: When a tenant calls with repairs, set up a time to come and inspect the damage immediately. Tenants will respect you more if you let them know ahead of time when you plan to visit the rental property to inspect the repairs. Some states may require you provide your tenant legal notice to enter the rental property if they are not home. Once you inspect the damage, schedule the repair immediately. I insist that all work orders or repair maintenance be scheduled for repair within 24 hours. State laws handle property management maintenance differently. If you do not take steps to correct the repair some states will allow a tenant to make the repair and deduct the cost from the rent, if you don't have the repair done in a timely manner. Most states do not set a cap on the repairs so if you fail to act in a timely manner this could be very expensive. The faster the repairs are fixed the better chance you have at having a happy tenant that will stay. • Keep the Lines of Communication Open: Tenants feel more at ease when they know how to get in touch with their landlord. When a tenant moves in, give them your phone number right away. Better yet include an email address where the tenant can send you a non-emergency repair request. This will cut down on the amount of after-hours calls and help you keep a written record of communication between you and your tenant. All of this information is in my welcome letter which is included in my welcome package. • Respect Your Tenant’s Privacy: Good tenants value their free time. Set regular business hours and never show up to inspect a property unannounced especially before 8:00 am or late in the evening. I personally prefer to inspect every 3 months in the first year and then every 6 months. Tenants want their privacy. In fact, several states require that you give a tenant notice before you enter the rental and if you don’t give proper notice the tenant can refuse you access. You certainly shouldn’t abandon the rental property either especially if you suspect the tenant may have caused damage. • Listen to the Tenant’s Concerns: Most tenants won’t contact you until they feel they have to. When the tenant calls you make sure you hear what they have to say. You can mediate disputes between two of your tenants, and you should take disputes seriously because if you don’t, one day you’ll have the police at your rental property because the two tenants got into a fight. It's good landlord advice that if you can do something about the problem, do it immediately. Tell the tenant you will address it and do so in writing. • Exercise Compassion: Occasionally some of your tenants will have a problem. Maybe they’re running a day late on their rent payment or they need to let their recently divorced brother sleep on their couch for a couple weeks. Whatever the problem try and tap into your compassionate side when dealing with your tenants especially the good ones. In my welcome package I have another letter that addresses late payment andhow they are responsible for making sure they pay their rent on time, however I explain I expect that they will from time to time have a problem and it is their responsibility to contact me to inform me about the problem along with a solution. I try to encourage open honest communication. However if I see the tenant is abusing my compassion I will evict them. If you show tenants a bit of compassion and let them slide within reasonable boundaries of course they will remember the kindness. If tenants feel they have a compassionate, understanding landlord and not just a money hungry landlord, they will be more likely to renew their lease, accept a small rent increase and most importantly they will take care of your rental property. • Make Them Feel Special: I have programs to make my residents feel special: * For the residents that pay their rent on the first day of the monthI give them a cash reward of $10 to $25. * I send out birthday cards to each resident including their kids, and have resident pot-lucks four times per year (for multi-family properties). * If a resident is good, pays on time and helps take care of the rental property I will send them a Wall-Mart gift card or a gas card for $25. At lease renewal I give the resident a list of three of four items that I will improve on the property if they sign a new lease with a rent increase. At first glance you may think this is very costly, but compared to evicting a tenant or having to find a new tenant at the end of the lease, this is cheap in comparison.
Landlord Advice - Final Words Taking a slightly different approach to the rental property business can make you a landlord that spends very little time in the eviction court and making expensive unnecessary repairs. By taking these few tips into consideration you can make sure that you’re an attentive, proactive, understanding and profitable landlord. Do you own rental property that you lease out to tenants? How do you keep a positive working relationship between both parties? Tell us by sharing your own landlord advice. Do You Have a Tenant Experience or
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