The Human Factor in Becoming a Successful Landlord

Becoming a successful landlord is a process, rather than an event. The process could even be considered evolutionary. Sometimes the role of landlord feels similar to that of a parent, at other times your cold rationality is the only thing that will get you through. Never mistake that renting out residential property to strangers is a business. There is great responsibility that comes along with your role as a landlord. The daily comfort and safety of families, your tenants, is to some extent your responsibility.

Whether, you planned to become a landlord, or became a landlord by default, you probably had no idea what was in store. There is plenty of information available in books and online about the nuts and bolts aspects of becoming a successful landlord. However, the human factor - selecting a tenant and ongoing landlord/tenant relations is rarely discussed in depth. A tenant can look great on paper, but can turn out to be less than desirable after moving into your property. Avoiding the bad apple tenant that at first smells like a rose is more art than science. After all is said and done; after the rental application has been submitted; after the background check has cleared; after the credit report has been approved; after the references have been checked; the final decision whether to rent your property to this stranger, also, relies on your instinct and intuition.

I encourage all landlords to consistently practice fair and legal practices in renting out their properties. I also encourage landlords to perform all of the checks and to educate themselves thoroughly about their rights and responsibilities. Before you take money for a deposit, and before you have your prospective tenant sign the rental agreement give yourself some time for reflection.

Even though your prospective tenant may look great on paper. And even though the tenant seems eager to sign and pay a deposit. And even though you are eager to rent out the space. Wait. Wait a day or two, or at least several hours. Ask yourself certain basic questions. Is this tenant going to be comfortable in this space? Is it within or beyond his financial means? Is the space the same level of luxury, or lack of luxury, that the tenant is likely to be accustomed? Is your tenant going to like the neighborhood? Is the rental space large enough for their family?

A prospective tenant may be very eager to rent your space. And you may be just as eager to rent to him. That short waiting period can allow you both time to make sure that the match is right. If the tenant seemed to stretch to come up with the deposit and first month’s rent; or if the tenant asked about a dishwasher when there is none; or if the tenant has children and there is no yard; carefully consider whether this tenant will really be happy in this space. This tenant may sincerely believe that he can live with having to stretch himself for the rent; or doing without a dishwasher; or taking his children to the park to play. But three months later you may find you have a dissatisfied tenant on your hands. Likewise, if the tenant seems overly particular about details, such as interior wall color; or window coverings you supply; be careful. This type of tenant may be very difficult to please no matter what you do.

It may seem like I am stating the obvious, but make sure you can communicate with your tenant. The landlord/tenant relationship is inherently adversarial, but you, the landlord, should never allow it to be uncomfortable. At times it is very difficult to keep the tone of your conversations cordial and businesslike. There will be disagreements from time to time. Keep in mind, that one of your most important responsibilities as a landlord is to take the lead in all business matters, and keep all business matters businesslike. Striving for a tone of businesslike cordiality in all interactions with your tenants will promote good communication. Good communication and mutual respect will help keep your tenants happy. Happy tenants stay longer, and pay their rent on time. In the long run, happy tenants is all it takes to keep a landlord making money, and therefore, also happy.