December 6, 2014
Landlording is not for everyone, you have to deal with all kinds of people, and have to bear with being disturbed at random hours for minor issues, you have to deal with tenants you get late on rent, and those that won’t follow the rules.
It’s a good way to earn money long term but there are things you can do to make life easier for you in the long run by establishing certain ground rules that can help maintain a healthy relationship with your tenants that does not put a lot of strain on your constitution and give you constant migraines.
When you are the Owner but you’re not the Owner.
First thing you need to remember is that even if you are the owner, make sure you establish yourself instead as a property manager, if you ever get into any conflict situation you can simply cite policy and point the finger at the Owner ( which would be a Business entity you ask your lawyer to set up for you )
This way you can have a great time, blaming the Property Owner and dissolving any conflicts your tenants may have, since you can show them you sympathize with their plight and put yourself down to their level.
Never Rent Out to Family or Friends
The Cardinal Sin of Managing Rentals is Allowing any of your Family members or Friends to come in as a tenant, you will never be able to enforce your rules, and God Forbid they should make relationships with their neighbors you’ll be on point to take care of their needs simply by an obligation of proxy, you’ll never be able to ask for rent if it’s late.
It’s never a good idea to get family involved; it puts a lot of stress on the relationship and you have to deal with the choice of getting screwed over or preserving the relationship.
Late Fees for Late Rent
Make is a Permanent Rule to Charge Late Fees to anyone who does not pay their rent on time, people usually make enough money to be able to pay rent and adjust their other necessities, but if you become lenient in your collection and don’t set up penalties, Tenants will usually put rent at a lower priority than their personal needs.
Charging late fees for late rent will make your tenants give top priority to paying the rent on time, make sure you don’t give any exceptions when it comes to this rule.
Outsource the Repair Work
It’s always a smart decision to outsource your repairs to a permanent Repair guy, once your phone goes off, give him a call and have him take care of the repair work for a fee, long term contractors that can do minor repairs are a must have for managing rental properties.
If there are minor repairs you can even take care of them yourself but it’s good to have a plumber and electrician handy for the bigger jobs that usually need doing from time to time.