The key to becoming a great landlord is determined by your capacity to add significant value to your future investments which leads to retaining happy tenants.
1. Visualise long term tenants.
It is important to think long term when accepting new tenants. The object of looking for a tenant should not be taken with a short term frame of mind. Rather, keep in mind that they may stay for at least the next 5 years. During tenant screening, read their references and talk over detailed applications with your Property Manager to make sure you choose wisely. Preparing in this way will help you choose the right tenants for your property.
2. Calculate and pick the right price.
Consider the stiff competition in the rental industry and make sure the price you are offering is within the current market value or if possible, slightly lower to attract more tenants. If you choose to go with overpricing, the tendency is that prospective tenants compare your property with the rest of the market and will look elsewhere first. In effect, you won’t be able to get the best tenant.
3. Value and honour long term tenants.
Just like any business, loyal customers are valued. Tenants who sign up to long term rental agreements are the best customers and they deserve attention just as much as the difficult ones (Although for very different reasons). Building a long term relationship with the tenants helps to keep your asset well maintained.
4. Be firm in your position.
As a Landlord, you need to be firm and professional in dealing with prospective tenants. Wait for the completed application forms and conduct all the necessary checks and balances before making your choice. Your Property Manager should be all over the application process and their advice should always be spot on.
5. Keep on learning.
You need to be equipped with some of your own knowledge and skills to face the challenges that may come your way as a Landlord. It’s like any business, you need to be able to understand and respond to all situations so that you will not be left behind in the market (A good property management company will have specialists that will be able to help you here). No matter the size of your property portfolio, there is always room to learn and grow.