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Being a successful, profitable landlord requires several different skills and traits.
Anyone with capital and a plan can buy a few rental properties and call themselves a landlord or a property investor. In fact, many people do just that.
Several years (and perhaps some difficult tenants) later, they might question their decision to invest. Property investment is a deceptively tough business, and a lot of new landlords start out thinking that it will be good way to make a quick buck.
This is far from the truth.
Being a good landlord can often mean asking the tough questions, especially when acquiring and on-boarding new tenants.
It can take a lot of effort, time, money. It also takes someone who either has or has developed certain traits to become an effective, successful landlord.
So, do you think you have what it takes to be a profitable landlord?
Here are the top 5 traits of what a successful landlord may have.
1. PROFITABLE LANDLORDS ARE RELIABLE
As a landlord, you will be aware that finding reliable tenants is important, but you should always keep in mind that dependability is an important trait for landlords as well.
Your tenants need to know that you will enforce your policies –and the terms of the lease. Consistency matters, and letting tenants slide on issues such late rent can open the floodgates for future problems as well. Similarly, tenants should also be able to rely on you to perform repairs and maintenance –and know that you’ll handle any issues or concerns in a timely manner. Professional landlords understand the importance of being dependable and strive to be true to their word.
2. PROFITABLE LANDLORDS RUN THEIR NUMBERS, TWICE.
Maths is no fun.
We all learnt that experience from school. However, doing your calculations makes the difference between making a profit or not. SO start embracing your inner accountant.
Once you know how much rent you can expect to get, you would then need to figure your expenses:
- Maintenance costs
- Property manager or property software.
3. PROFITABLE LANDLORDS AREN’T NICE
But this doesn’t mean you should be unfair. This also does not entitle you to be a jerk or to be condescending in any way towards your tenants. You should never discriminate based on race, color, religion, national origin, gender, disability, or familial status.
But being nice … well, you know the saying, “Nice guys (or girls) finish last.”
If you’re nice, you might let your tenant be late with rent, move in four cats and three dogs, and paint the living room purple. Landlording is a business and this means putting the foot down on things that will ultimately cost you at the end. Being friends with your tenant may sound nice, but your investment should always come first.
The best way to be with tenants is to be professional, confident, reliable, and fair.
Landlords should be professional, confident, reliable, and fair.
Ultimately managing a property is a business and your tenants are your customers. Do what’s expected of you regarding maintenance and repairs and ensure that your tenants do what’s expected of them too, such as paying rent on time and looking after the place as best they can.
Which leads on to the next point.
4. PROFITABLE LANDLORDS ARE PROACTIVE TO ISSUES.
Many types of urgent problems can come up unexpectedly and may impact the tenants quality of life. Things such as hot water not working or the electricity not working. Other issues such as leaks can also cause damage to your property. It is your responsibility to respond in a timely manner to ensure these urgent repairs are carried out. Response time is important as it builds into the trust relationship.
Of course no rental property operates 100% smoothly all the time. There is always going to be general repairs and maintenance that need to be done, such as painting the fence, replacing a carpet or insulating the house.
Thus, communication is key.
5) PROFITABLE LANDLORDS ARE VERY ORGANISED.
The more properties you manage, the more important it is to be organised. It helps to set up a system that’s easy for you to use to keep track of your paperwork and all the stuff that needs to be done.
Landlords have to keep a lot of information and documents in order.
Some of the items that you must keep organized include:
- Book Keeping
- Rent Payments
- Bond Lodgements
- Tenant Applications
- Vacancies, Marketing and Advertising your properties
If you lose track of any of these items, you will find it very difficult to make money as a landlord.
No tenant wants to find out that their landlord has misplaced their contract, or worse, their bond application. A good landlord is well organized, with documents on hand when a new tenant arrives.
If you have all of five of these traits then perhaps you are a successful landlord so salut to you.
If not perhaps you are on your way, but take some time to reflect on whether you could develop in any of these areas.
If you want make your property business work for you Kitt is here to help out. No, not the talking car from Knight Rider. Sorry to disappoint.
It may not be the crime-fighting super computer , but its the next best thing.
Kitt gives you the platform to be a profitable landlord and covers all of the 5 traits and so much more. A digital property platform built for landlords. Covering everything from ordering jobs, checking rent, managing inspections, accounting and loads more.
You can’t be a bad-ass crime fighter, but you be certainly be a bad-ass property investor.
Come check us out !