Purchasing a property is only the first step to building wealth, maintaining a good relationship with your tenants is the next most important thing and it requires a very specific set of skills. If you've been a landlord for a while, you know exactly what we're talking about.
Though both parties sign a leasing agreement which includes the rules and regulations that must be followed, things are not always that easy.
The Landlord-Tenant Relationship Matters
Your tenants are a key ingredient in building a profitable rental portfolio:
They reduce your expense liabilities by covering your mortgage payments, property management fees, and other ongoing expenses. Basically, they are purchasing your property for you.
They increase your monthly income through monthly rents. If you made a good purchase decision, the rent will be more than your expenses. That margin provides short-term profit and/or seeds a healthy reserve fund for maintenance.
As you can see, tenants are extremely important. You want to make sure the ones you place in your property are treasures – they pay on time, live peacefully, take care of your property, and stay as long as possible.
Why Landlord-Tenant Relations Often Don't Work
Even when you meet the best tenants, communicating with them can be difficult. why is that?
As a property owner, you carry a lot of stress and responsibility. You can always answer the phone, whether it's urgent or not. Phones ring 24/7 for repairs.
You have to handle paperwork, inspections, maintenance, rent collection, and more. It can be very stressful and difficult to accommodate when tenants want to chat. And being kind is even harder when you have to enforce a lease.
Even if it's not your fault, let's face it - it's not the path to a healthy relationship. When you're ready, try some tips. Remember you have to be consistent.
1. Do you have an open door policy?
Tenants want to feel like their concerns and requests are taken seriously and answered quickly. They want a reliable landlord that is available to them at all time.
2. Respond quickly
If your tenant reports a need for repairs, if he has concerns with neighbors, etc., you need to act. Your tenants need to know they can count on you to- otherwise they won't contact next time.
3. Acknowledge their concerns
When a resident talks to you, be respectful and listen. They lease at your investment property, so they know the location (and surrounding areas) up close and personal. probably better than you. If they want to share their knowledge or concerns, let them know and address them appropriately.
May or may not require customer action. But making a renter feel heard can make a big difference in the world.
Landlord Relationship with Property Management Company
Depending on the size of your portfolio and your schedule, the best way to manage your landlord tenant relationship might be by using a property management company. A property manager is the equivalent to an expert landlord. They can handle all aspects of maintaining properties, including tenant screening, rent collection, maintenance, and evictions. And, yes, they also work to nurture the relationship with tenants.
As a professional in the industry, property managers are ready to handle anything that arises – and they have not only means to do so but your best interest at heart.
Contact us at P2SMART and let us help you manage your properties.
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