Becoming a real estate investor means dealing with all the perks of the trade and ensuring your success. Purchasing a rental property automatically makes you a landlord, meaning you have to take all the responsibilities. However, it is imperative to note that you’re responsible for the building and your tenants.
As you go over your cap rate formula, how you treat your tenants determines if you get a better ROI on your real estate investment. It means you have to maintain a good and professional relationship to ensure tenants stick to the lease agreement. It is imperative to note down some of the traits to help you maintain a good rapport with your tenants.
You don’t have to be that landlord that is only available when collecting rent. Here are some excellent landlord traits to make you more than meets the eye.
Professionalism
You should treat your real estate investment like any other business. It means you should be a professional in how you present yourself and take proper care of your tenants. However, don’t confuse professionalism with strictness or being up in your tenants’ business.
You should observe the boundaries that go beyond the lease agreement. Being a professional landlord means taking responsibility and implementing favorable policies for all. Respect everyone and their boundaries to do your job without patronizing your tenants for better retention.
Transparency
Most tenants prefer working with a landlord that keeps them informed and open to all information. Ensure transparency by updating your tenants in case of any policy changes or rent increments. Let your tenants know what happens or the decisions made behind closed doors.
Don’t hide the reasons behind rent increment or changes in the lease agreement. If the cost of materials to make repairs is rising, be honest and open with them.
Avoid any hidden clauses in the lease agreement and ensure tenants know about all additional costs. It then becomes easy for you to establish an open communication channel and maintain positive trust levels.
Communication
Communication is vital for the success of any business. Hence, avail yourself to listen and deal with any tenancy issues. Be approachable and ensure your tenants can reach out to talk about any building issues.
If you’re not always present to communicate, have a real estate manager handle all issues and report to you. Ensure you’re easy to deal with and available to talk with clients about building issues. Communication cements a professional relationship with your tenants and creates better tenant retention.
Communicate any underlying or previous building issues before renting out a unit. Be available to answer any questions or have someone to represent you when needed. Keep an open line to learn about emergencies and take early action to maintain proper living standards.
Proper Maintenance and Organization
You can avoid unnecessary issues such as losing track of rent payments or misplacing lease documents. Organize all your documents for smooth retrieval and better planning. Tenants trust you to keep their personal information and documents safe from loss or unauthorized access.
You also need to retrieve and track your documents when resolving any rent issues or reviewing lease agreements. Have a system to store all your documents and stay on track with tenant appointments. Leasing involves loads of paperwork vital to tax filing, scheduling maintenance, and landlord accounting.
Conversely, ensure your building is in tiptop condition and handle emergencies on time. Move swiftly to address all building issues as soon as they get reported and stick to a maintenance schedule.
Managing a rental property can be challenging, an online cap rate calculator can be an excellent tool that will help you identify price and gross income. By doing so, you will be able to compare investment property options that can be very useful to manage your market averages.
Screening Abilities
Tenants play an integral role in the success of your real estate investment. You may have good landlord qualities, but they won’t count if you have irresponsible or unscrupulous tenants. Your primary focus should be on finding quality tenants who can respect and live according to building policies.
It would help if you knew how to screen for appropriate tenants before leasing out your property. You need someone who can respect your property and live according to code. Do your background search to unearth all tenant information before leasing. Screen all your tenants in the same way and check for references listed in their application.
With the right qualities, you can work with tenants who only make your work easier. This way, you can effortlessly offer your services and find tenants that meet your requirements. These traits not only help you to be a better landlord but also to protect your investment by reducing risks.