Being a commercial landlord goes way beyond owning an investment property and renting it out to tenants. There are things that can make you an excellent landlord and aid in your success.
Here are six things great landlords excel at:
1. A commitment to thoroughly screening tenants
Finding the right tenants can help you be a better landlord. It can be tempting to rent to the first potential tenants as you’re eager to lease out your space. However, sometimes the wrong tenant can be worse than no tenant at all. The wrong tenant can lead to more complications and may even bring out the worst in you as a landlord. Do a thorough screening with every tenant to make sure you’re choosing the right one for your property.
2. Paying attention to rules and regulations
Landlords need to be aware of any laws that apply to their property so they can stay in compliance and avoid getting themselves into legal issues.
3. Knowing how to keep tenants satisfied
Being a good landlord means considering the needs of your tenants and how you can establish a good working relationship with them. This means committing to regular property maintenance and handling any issues that you’re responsible for. It also means being an effective communicator. Be clear, honest, and friendly in all of your interactions. In addition, you need to be available when tenants have an issue they’d like to address. All of these things can help you keep your tenants satisfied and reduce turnover.
4. Keeping good records
Keeping records such as lease agreements, conversations on important topics and receipts is essential as a landlord. You need to be able to pull up those records if a question or issue arises. You will also need some of those receipts come tax time.
5. Being professional
An excellent landlord knows that their real estate investment is ultimately a business. That means you need to be professional in all of your interactions with others. Keep this in mind when dealing with tenants and vendors.
6. Having cash reserves
Experienced landlords know that surprises are a part of life. You may have something that suddenly breaks or another issue arises and you need the funds to handle the problem ASAP. That means you need to have some reserve funds to meet the demand. Don’t be frugal when it comes to conserving money for these potential issues. Make sure that you’re allotting a reasonable amount so you can cover unexpected expenses.
There are a lot of skills that can help a landlord be successful in their endeavor. At PMI, we can help you find the right tenants and keep them happy. We’re also equipped to handle accounting needs and know how to keep you in compliance with applicable laws. Reach out to us today to learn more: .