How to Be the Perfect Landlord

While real estate investment can yield considerable profits, the experience can be quite a different one if you're both an investor and landlord. Difficult tenants, expensive repairs and falling rents can eat into your profit. However, the right person can find this line of work very rewarding if they're willing to roll with the punches.

Instructions

Difficulty: Moderate

1. Be willing to put in the work. Not everyone has the time or willingness to track down overdue rents, take midnight calls about a broken furnace or screen the applications of potential renters. Successful landlords take pride in their properties and it shows through their dedication to choosing the right renters and keeping on top of daily business.
2. Adjust your expectations and be reasonable about life as an investor and landlord. Though late night infomercials may promise otherwise, new landlords to not usually make the big bucks overnight. There are usually bigger, up front costs and yield returns at a slower rate, building over time. Having grounded expectations will make you a more understanding landlord who is committed to learning the business over the long haul.
3. Focus on finding the right tenants. It can be time-consuming and intense, and sometimes stressful, but the initial investment will reap financial rewards while preventing additional headaches later. Interview extensively, ask for references and check them and do complete credit checks on potential tenants. Long time renters will appreciate your thoroughness and you'll be respected as a landlord who takes pride in your property.
4. Don't be hurried and don't make a quick decision because you feel sorry for someone when deciding who you will accept as a tenant. Your business will suffer from not doing the proper research in the beginning. Your diligence and ability to focus on making the best business decisions should keep you from frequently interviewing because of high turnover.
5. Be willing to get your hands dirty and do what it takes to get things fixed and resolved for tenants. If you're handy around the house, you'll save dollars making repairs yourself, but even if you have to hire jobs out, strive to get them resolved immediately. Your tenants will thank you.
6. Develop positive relationships with tenants. Don't just be a complaint hotline: take the time to stop and say hello, ask how they're enjoying living in the space. Be a friendly face who cares about them and the property, not just a name on a sheet of paper. You'll be building a strong business relationship while developing loyalty.
7. Educate yourself. The more you know about the up and downsides of the business, the better you'll be able to handle unpredictable situations. You'll also feel more confident and informed and will be able to serve as a better resource to your tenants.