Like any occupation, managing rental property requires a certain skill set. There are seven traits necessary for every good landlord. Master them all and you could be a great landlord.
These traits come naturally to some people. Others can learn the necessary skills with some effort and practice. The reality, though, is that not everyone is cut out for the job.
There is no shame in admitting that you don’t have the time, energy, or patience for one or more of these aspects of property ownership. But you can still reap the benefits of property ownership by finding a trusted company to provide great property management for your tenants.
How Do You Stack Up as a Good Landlord?
There are a lot of tasks involved in managing rental properties, and landlords who do it well have the following traits. These skills result in being able to attract and keep good tenants. This leads to a better bottom line that safeguards the owner’s investment.
1. People Skills
Being a landlord means remembering that tenants aren’t just a source of income, but real people with valid concerns. Good landlords have consideration and empathy for their renters and are mindful of potential issues that may arise. They keep the lines of communication open and work to maintain good relationships, while also respecting tenant privacy and boundaries.
The job requires a keen eye to distinguish good potential tenants from bad, along with using tools like formal background checks. Landlords must also be able to set aside their personal feelings when they have to turn down an applicant, raise the rent, or terminate a lease. They need to be comfortable dealing with all kinds of personalities and good at conflict resolution.
For someone who doesn’t enjoy interacting with people or is squeamish at the thought of enforcing rules or delivering bad news, hiring a property manager can be the answer. These professionals are experts at dealing with people from all walks of life.
2. Customer Service
Landlords can’t forget that owning rental property is a business, and they need to keep their customers—the tenants—happy. Owners have a duty to provide a safe, comfortable place to live in order for their tenants to want to stay.
Consider any company’s efforts to give good customer service. A landlord’s job is not that different. They must:
- be responsive to requests, complaints, and emergencies.
- prioritize safety, security, and cleanliness.
- charge a fair price.
- be available 24/7.
Keeping tenants satisfied—and doing all the things that entails—can be a lot of work, especially when maintaining a large number of rental units. A great property management company can provide added support.
3. Flexibility
A lease agreement spells out the rights and responsibilities of both tenants and landlords, but a good landlord is flexible and open to reasonable requests. For example, a tenant might ask to paint the apartment. If the tenant is trustworthy and they agree upon a color, the landlord may decide it is in their best interest to allow it, and may even provide the paint.
Or, suppose a tenant’s sibling needs somewhere to stay for three weeks, but the lease has an occupancy limit. The landlord could choose to temporarily waive the limit and let them stay—provided they do not discriminate by allowing the same courtesy to all tenants should the need arise.
4. Technical Know-How
We live in a digital world. Online portals and apps where tenants can pay rent, make maintenance requests, and communicate with the landlord are expected nowadays.
Landlords can’t continue to do things the “old” way forever. Younger tenants are looking for even more convenience and innovation, not only in interacting with their landlords but in their homes as well. More than five years ago, a study found that 86% of millennials were willing to pay more for an apartment with “smart” features. Gen Z renters and those who come next will likely demand even more.
Good landlords must be knowledgeable about—and ready to embrace—the latest innovations for their tenants. If keeping up with technology is not a strong suit, they may want to explore hiring a property management company instead.
5. A Finger on the Pulse of the Industry
As mentioned above, keeping up with technology is important. So is paying attention to everything going on in the rental and real estate industry such as:
- being aware of fair housing rules and watching for changes.
- understanding what is and is not legally acceptable, such as gaining access to a tenant’s apartment.
- how to implement security measures to address renters’ safety concerns.
- changes in rent amounts in the local market.
- Amenities that will attract tenants, for example, a fitness room, bike storage, or lock boxes for deliveries.
Good landlords are curious about what will make their investment properties more appealing, and therefore more profitable. A professional property manager can do it for you if this sounds like too much trouble.
6. Maintenance Expertise
A huge part of being a landlord is handling maintenance and repairs. Many owners think that the only way to keep maintenance costs low is to do it themselves. This is fine, as long as they have the abilities and time it takes to do the job effectively. But even someone with great handyman skills will struggle with larger projects and could get tired of being available 24/7. They’ll eventually want some time off or need to retire.
Great property management companies have access to reliable, cost-effective workmen and cleaners. They may employ someone on-site for larger properties, or keep a list of contacts they can call upon as needed. And, managing multiple properties often allows them to lock in vendor and contractor discounts that an individual landlord might not have access to.
7. Business Abilities
Since running rental properties is a business, it takes someone organized and not afraid of dealing with a lot of paperwork. Good landlords have some financial and accounting knowledge. They must also understand legal issues regarding fair housing and leases.
Of course, a landlord can hire an accountant and attorney to handle these things, but they can also have a management company take care of it. Great property management companies worry about budgeting, paying bills, and collecting rent so the owner doesn’t have to. In addition, they will provide detailed reports and statements, keeping the landlord informed about the business’s financial well-being.
A Great Landlord Knows When to Consider a Property Management Company
For someone with the right traits, being a hands-on property owner is the perfect job. But that doesn’t mean someone lacking one or two of these characteristics can’t be a good landlord. In fact, getting the right kind of help might be what it takes to become a great landlord.
According to Business Wire, more than half of all landlords use a property management company, and another 24% are in the process of looking for one. This isn’t surprising, considering the amount of work self-managing rentals can be—especially for an owner who also has a full-time job.
Great property management companies handle what a landlord can’t do, or simply doesn’t want to do. By partnering with a professional company, they can provide the very best for their tenants.
In the St. Louis region, contact to see how we can help.
Cover Image by Syda Productions by Canva.com
