Learn How to Host Like a Pro. Grow Your Rental Income. Attract & Maintain Loyal Tenants.
Owning a rental real estate can be a great source of income because it can offer you steady profit influx and long-term appreciation. In order to boost your rental revenue and make tenants happy, you have to manage the property successfully. Yet, if you’ve never run a rental unit before, you may not be fully aware of what renters want or what skills and personality traits make a good host. Like any other occupation, it takes a combination of various skills to be a successful landlord, including people skills, digital proficiency, maintenance expertise, business abilities, organizational skills, and many more.
To help you confidently manage your property and create strong relationships with your tenants, we’ve compiled a list of 10 things that will help you become a great landlord. In this article you’ll also learn about detrimental habits you should change and how a professional property management company can help you on your path of success. By following our guidelines, you’ll be well on your way to becoming favorite landlord among your tenants. Now let’s see how it’s done.
Call Swell Property Today! Become a Great Landlord & Run a Successful Rental Business
Swell Property is an eminent property management agency that helps landlords run their long-term rentals and short-term rentals in Encinitas profitably. With 20 years of business presence and valuable practical experience, we can substantially improve tenant satisfaction and develop your recognition as a preferred landlord in the area. Our proficient managers have all the skills needed to succeed in rental market, including organizational skills, communication skills, financial management, negotiation, and many others. Having this diverse set of skills allows us to create and maintain thriving rental businesses for our clients. Our services cover all aspects of rental management, such as rent collection services, customer service, advertising strategies, maintenance, financial management, technology proficiency, and many more. Over the years, we’ve helped hundreds of owners in Encinitas boost their revenues and become prosperous landlords and we can help you accomplish the same. Fill out an online contact form or give us a call at (760) 452-2345 to find out more.
10 Habits to Adopt to Stand Out as a Landlord
Running a rental unit can potentially be a lucrative business, but only if it’s managed properly. If you are planning on investing into rental real estate it’s important to understand that your profit will be dependent on your skills as a landlord. In order to do your job well and grow your revenue, you need to have all around competence and adopt adequate habits. To determine whether you are prepared for this job and what you need to become a successful landlord, take a look at 10 key principles.
1. Organizational skills
Running a rental property involves juggling multiple tasks and responsibilities throughout the day, which is why it is important to be very well organized. When you have strong organizational and time management skills you are critical in managing a successful business. These abilities allow you to handle all your daily tasks with ease, with some spare time to address accidental issues. However, don’t despair if this doesn’t come naturally to you, because you can also practice and develop some of these skills through courses.
In rental business, these are key areas where organizational skills are needed:
- Coordinating maintenance and repairs – scheduling, tracking progress, meeting deadlines
- Collecting rent and keeping financial records – administrative tasks, late payments follow up
- Property inspections – Scheduling and conducting regular inspections to identify potential problems on time
- Managing finances – Maintaining accurate income and expenses records
2. Strong communication
When your business involves dealing with people, you must be able to communicate well. In this business, you will be in contact with tenants, service providers, contractors, lawyers, and various other vendors, so you need to be able to negotiate and establish a good rapport with everyone. As you will interact with different kinds of people, you should strive to always speak (and write) in a clear, concise, and respectful way; thus, maintaining positive relationships and easy problem resolution. Apart from verbal communication, you should also pay attention to how you write, as you will be drafting leases and various other contracts and notices.
Great communication is important for:
- Successful tenant issues resolution
- Nurturing positive relationships
- Discussing maintenance and repair matters
- Negotiating lease and contractor agreements
- Establishing good reputation
3. Customer service
If you want to succeed in rental business, you must aim to keep your renters happy not only by providing a safe and comfortable place to live, but also by giving good customer service. Keeping tenants happy may be a lot of work, particularly if you own a multi-unit complex. The key is to be fair, pragmatic, available, and remain calm and pleasant even in hard situations. Great customer service entails:
- Being responsive to tenants’ request and complaints
- Being fair, respectful, and understanding
- Prioritizing safety and security
- Being honest and open
- Be easily accessible and available
- Have empathy and appreciation; be compassionate
4. Technology proficiency
As we live in a world where technology advances every day, a landlord must stay updated on these fast changes. Being proficient in technology will help you manage your rental property more efficiently, provide better service, easily meet tenants’ needs, and remain competitive in the market.
Consider implementing and mastering:
- Online marketing strategies (online listings, virtual showings)
- Digital communication channels (apps, email, texts)
- Financial software for money management and generating reports
- Collaboration software (Google Docs)
5. Effective problem-solving
When you run a rental business, a lot of issues can come up in the course of time, requiring you to think fast and solve problems effectively. It is crucial to acquire and practice these skills in order to be able to work out solutions in a timely manner make sound decisions which are good for your tenants and your business.
Having these skills will help you:
- Mediate conflicts
- Make informed decisions
- Find effective solutions
- Resolve disputes
- Handle emergencies
6. Money management
Another important skill to have is effective financial management. Your rental property is your investment, so managing it reasonably is pivotal ability to have.
Financial management expertise is important for the following:
- Increasing profit through correct rent pricing
- Collecting rent efficiently
- Handling late payments
- Budgeting for expenses (maintenance, property upgrades, repairs)
- Evaluating performance and developing strategies to improve your ROI
- Maintaining continuous cash flow
7. Marketing abilities
If you want to stand out in the market and stay ahead of the competition, you need to have strong marketing abilities. Marketing involves everything from taking great pictures and writing catching content in the listing to conducting property upgrades to make your unit more appealing to right tenants. A good starting point is market research, which will help you set the right rental price, and see whether (and when) you need to make any adjustments. Knowing where to place ad is also essential because it gives you an opportunity to attract the right type of tenant.
If you are not confident enough about your marketing knowledge, you can always hire professionals to help you with this aspect of your business.
8. Maintenance and repair management
A large part of being a lessor is attending to maintenance issues and repairs. A lot of owners think that they can lower expenses by fixing issues themselves, which is possible if there’s enough time, skills, and equipment to do everything properly. However, realistically, it is very hard to be available 24/7, to keep track of all tasks, and to handle all types of maintenance issues by yourself. Plus, you need to have professionals to handle things like plumbing or electricity.
The best solution is to hire a property manager who has access to licensed, reliable, and affordable contractors of all trades who can take on both small and large projects.
9. Timely response time
If you want to establish a positive relationship with your tenants, one of the most important things is to respond to their concerns and inquiries in a timely and professional manner. When a tenant calls or texts you, aim to respond as soon as possible, or at least within 24 hours, and always follow up to show that you are genuinely committed to handling their issue.
Even though you may know your tenant really well, don’t forget that this is your business, and business etiquette requires calls for timely responses. You can also use technology to your advantage by using autoresponders or templates to acknowledge message receipt. When responding always be professional, provide correct information, and respectful language.
10. Foster friendly but professional relationship with tenants
The ideal tenant – landlord relationship is friendly, but professional. You have to find the right balance so that they can feel welcomed and heard. As previously mentioned, maintaining good communication is the cornerstone of having a good and healthy relationship with your tenants. Ensure you are always transparent and keep them informed on anything that is in relation to their tenancy. Your diligence will be appreciated greatly and they will be confident that you are staying on top of things.
Here’s how to nurture quality relationships with your renters:
- Be honest & transparent – A good lessor is always honest with their tenants and discloses accurate information about the property, including past issues. Avoid vague information, as it can lead to misunderstandings and confusion. Always look for the best interest of both parties.
- Respect tenants’ privacy – Privacy is a fundamental right. In California, a landlord cannot enter the rental unit, before giving tenants written notice (24 hours for repairs/maintenance, and 48 hours for showings). Privacy also means avoiding prying on their personal life and being mindful of their personal space.
- Maintain clear communication channels – To maintain trust it’s important to make yourself available from day one and always be open for communicating clearly, openly, and concisely.
- Empathize with them – When you show compassion, understanding, and willingness to actively listen to your tenants’ problems, you are building a better relationship. Validating their feelings and paying close attention to what they are saying may help you understand them better and help you resolve issues faster.
Things to Avoid
Being a landlord can sometimes be confusing, but it’s not hard, once you follow our guidelines. This section lists things you should avoid at all costs.
- Don’t neglect screening – Statistics show that more than third of US residents have some type of record, so it’s imperative to properly screen applicants before they sign the lease in order to ensure they are reliable renters. Tenant screening includes identity check, employment history, and criminal background, helping you identify renters who will likely pay rent on time and respect your property.
- Don’t forget to consult with them over important issues – It is good practice to go over what you and your tenant agree to sign in lease agreement or in other types of contracts. Never overlooked their rights and consult with them about possible changes or adjustments.
- Don’t discriminate – The Fair Employment and Housing Act prohibits discrimination based on all protected characteristics – race, color, national origin, sexual orientation, familial status, gender, and disability. This means that you cannot have different terms and conditions for members of different protected classes. Similarly, you cannot advertise that you don’t allow families with kids, or people of certain national origins.
- Don’t raise the rent excessively without justification – Remember, a lease is a binding contract, and there’s only a few instances where you can raise the rent. When you do, make sure only raise it reasonably, not arbitrarily.
- Never evict tenants unlawfully – Tenants are typically get evicted if they fail to pay the rent or violate lease terms. Although this should be your last resort, you should be aware that legal eviction involves following the correct protocol. You have to go through certain legal channels, or else you may be held responsible for violating housing laws, while the tenants may be entitled to monetary remedies.
How to Improve Skills Needed to Run a Profitable Rental Business
If you feel that you may have to improve and strengthen certain skills and abilities, there are several methods to try:
- Focus on developing specific skill – For instance, you can improve communication by practicing concise writing, clear speaking, and active listening.
- Networking – Connect with other hosts to learn from their experiences and to share valuable insights.
- Seek mentorship – You may also find someone who has lots of experience and is willing to teach you how to solve problems and how to best address issues.
- Stay updated – Read online articles and industry publications to stay updated on current trends in rental business.
- Take courses – Enroll in courses to gain knowledge and practice skills, best practices, requirements, and responsibilities.
- Professional assistance – Consult with attorneys, financial advisors, or property managers for guidance on complicated matters.
- Self-reflection – Evaluate your performance frequently and set goals for improvement.
Seek Assistance from a Professional Property Management Company
If you are experiencing difficulties and find it challenging to be a good host, it may be because you are overwhelmed or overworked. Having said that, to maintain and further boost your rental business’ income, consider hiring professional property management agency. A team of experts can help you with many different responsibilities such as advertising, tenant screening and placement, maintenance, and rent collection. This way, you can enjoy numerous benefits such as gaining extra time, finding loyal residents, maximizing profit, reducing stress, and having satisfied tenants.
The Bottom Line
In present day, the concept of owning and running a rental property may be quite appealing to many people. However, the tasks and responsibilities that need to be handled in this business are not cut out for everyone and that’s why not everyone who enters rental real estate is successful at it. For the most part, being a good landlord is more than just collecting monthly rent and maintaining the property. It’s about fostering a good relationship with your tenants and making sure you are in compliance with the law. This will make your renters happy and considerate about your property, thus maximizing your occupancy rates and ensuring a continuous income flow.
Expand Your Knowledge:
About the Author
David Miller is Real Estate Advisor at Swell Property. Whether you’re eyeing a new home, an investment property, securing the best mortgage, or aiming to enhance your property’s value, my focus is on providing personalized guidance and strategy for your success. I listen to your needs attentively, ensuring that my expertise aligns perfectly with your real estate goals. My clients’ satisfaction and referrals are the true measure of my success in San Diego’s dynamic real estate market. If you’re searching for a real estate professional who’s deeply committed to your success, I’m eager to demonstrate my expertise and win your trust. Let’s connect and start this journey together.
