Have you seen the rise in rents and decided that becoming a landlord could be a good source for an additional income stream or even a new career? If so, you may naturally have wondered if you have what it takes to become a successful landlord. Owning rental property can be a great way to turn real estate into revenue, but only if you are able to avoid some of the most common mistakes made by new landlords.
Perhaps one of the biggest and yet most common mistakes that many people make when becoming a landlord is that they treat it like a hobby. Regardless of whether your rental properties are actually an extra sideline, they are still a business and must be treated as such.
In operating a rental property business, you must always remember that you are dealing with people. People who have problems and make mistakes. Learning to walk a fine line between being patient and compassionate while at the same time exercising toughness is crucial to succeeding in this business. If you cannot do that, you will find it difficult to attract quality tenants and continually find yourself coping with tenants who are perpetually late on the rent.
Are you hermit or an extrovert? You cannot expect that you are going to be able to collect rent on a timely basis each month without ever interacting with your tenants. You must be able to deal with people and even confront them from time to time. At the same time, it also helps to be able to make friendly small talk as the situation calls for it. Your tenants are more than just people who pay the rent. They are your customers and they should be treated as such.
Stop and ask yourself whether you frequently let friends and family members steamroll right over you. If you have a problem with telling other people in your life no, you may have a problem telling your tenants no as well and that can be a big problem. While you are obligated under law to provide your tenants with certain services, you are not obligated to agree to their every whimsy and if you do, you may quickly find your business threatened. If you are not able to stand up for yourself and your business, this may not be the right business for you.
Are you a free spirit who likes to go with the flow? There can certainly be many benefits to that type of attitude, but when it comes to succeeding in the property rental business, you absolutely must be consistent. Not only does it make for good business practices, but it can also help to keep you out of hot water with the law. Consistency with all rules and laws as they apply to property rentals is essential.
Learning how to become a kickass landlord is not difficult, but it does require that you treat your properties like the business they are, be willing to interact with your tenants, be firm but fair, and always be consistent.