One of the most rewarding ways to develop strong real-estate investments is to become a landlord and rent out homes or apartments on your property. Whether you are renting out a mansion or a studio apartment, how you handle your tenants will make or break your success as a landlord. Follow these essential steps to create a great, positive landlord-tenant relationship that can be mutually beneficial.
Set Clear Boundaries
Sometimes boundaries get a bad reputation as making someone appear sterile or unfriendly. However, healthy boundaries help ensure that you have a fantastic relationship that is rewarding for both of you without intruding on your lives in uncomfortable ways. To avoid friction, set boundaries from the very first day that you meet your tenant, and stick to those boundaries.
Only you can decide what those boundaries are. Some landlords set office hours and will only be contacted during certain hours, while others prefer to be available 24 hours per day. Some landlords encourage tenants to stop by any time just to say hi, while others want appointments to be made. Define and communicate your boundaries so that you both feel confident in interacting based on those boundaries.
Create a Thorough, Fair Rental Agreement
Be sure the rental agreement that you present to your tenant is thorough, detailed, fair, and very clear. It's a wise idea to have a lawyer create or at least read and approve the rental agreement. Don't simply give the agreement to your tenant to read and sign, though. Have an open dialogue about it. Discuss the details and explain some aspects of the agreement. When your tenant realizes that you care about the agreement and have chosen the terms carefully, they are more likely to pay attention to the agreement and take it seriously.
Many landlords simply do the bare minimum that's expected of them. They present a clean, livable home, and that's all they want to do. However, try to give your tenant a little something extra. A tenant who knows that the landlord cares is going to want to take better care of the property and be communicative any time an issue does come up before it turns into a problem.
Finally, it doesn't matter if you have a real estate in the most prestigious gated neighborhood in Malibu or a trailer park in the deep south, you need to show your tenants that you care and that you are dedicated to living up to your end of the relationship so you can have quality real estate in your area. Follow these steps to build a strong relationship with your tenant that can help you both get the most out of the situation.Share