The purpose of this title is to catch the reader’s attention to the importance of the 3 crucial landlording tasks for long-lasting landlord success. These 3 tasks are –
- Choosing the right tenant, no compromise
- Collecting the Rent in Absolutely Timely Manner
- Giving the notice of any violation, don’t hesitate
However, There is another meaning to this title, which is –
These 3 jobs, if performed perfectly, would make a big positive impact on your landlord business.
Lemme describe –
What Makes You a Successful Landlord?
Most small landlords learn landlording by do-it-yourself. It’s would not be far from the truth if we say small landlording is a self-learning process. One may get a cue from the blog like the one you are reading. Or you may have a successful landlord as your mentor. But implementation is all part of self-learning.
As a part of this learning curve, I am going to catch your attention on the importance of 3 self-learning and crucial jobs which are mentioned above. These 3 tasks overwhelmingly affect the landlord’s success or failure. This blog post is not a how-to article. Rather, it emphasizes the importance of these 3 tasks on the overall performance of your landlording business. There are several other tasks which are the pieces of the puzzle called the landlord success. But these 3 tasks, if performed correctly, would make a whole lot of difference.
Choosing the Right Tenant, No Compromise
When a tenant gives the notice to end the tenancy, the landlord immediately starts looking for the new tenant. It’s desirable to find the tenant possibly by the time the old tenant moves out. Once the unit is vacant, it is a net rent loss for the landlord. However, it’s not the magic. It has been observed that many times, this anxiety of finding the new tenant as quickly as possible, pushes the landlord to make the wrong decision and choose not the best tenant. The worst possibility is when the landlord skip some of the crucial screening procedural steps if the prospective tenant appears to be a good person.
Starting from the first contact of the prospective tenant, till signing of the lease, the landlord has to keep a check on the emotions. Keep thinking about the hindsight of choosing the wrong tenant and keep following the right procedure of screening, no compromise. I have seen the most experienced landlords making mistakes at this stage. As specially when you have a couple of rejections of the prospects, you get tired or frustrated and that’s when there is a possibility of making a wrong decision.
Don’t let those failed instances deter you from your resolve of finding the best tenant. You have to make a conscious effort not to fizzle out from your best effort to avoid potentially dire consequences.
Collecting the Rent in Absolutely Timely Manner
Often you come across the situation where your good tenants fail to pay the rent on time. At that point, you realize that you made a mistake in developing personal relations with your tenants. Because the tenants pay the rent in time and are taking good care of the properties, more often than not, the landlord starts talking casually with the tenants, and that leads to friendlier conversations and friendlier relations. So when the good tenants fail to pay rent, the landlord feels trapped into the situation. Often times, the problem tenants use this as a perfect strategy not to pay the rent or pay late.
From the very start of the tenancy, you have to ensure that your tenant gets the stern message, you are not going to compromise with your rent collection policy which is agreed and initialled in the lease. The rent collection policy may include relevant conditions like the remainder of upcoming rent, grace period, what is considered late rent, what action will be taken in case of non-payment of rent etc.
In short, from the collection of the first rent, you’d follow the same procedure without fail, no compromise. It has been observed that having a casual approach toward rent collection would always result in some kind of negative impact on the landlord-tenant relationship in the long run. The landlord’s approach should be absolute professional towards rent collection.
Always remember, the rent is the fuel your landlord business. Experienced and successful landlords advise an aggressive approach to the rent collection, which is not for nothing.
Giving the Written Notice of Any Violation, Don’t Hesitate
The new landlords are hesitant in issuing the notice of offence. This behaviour is the cause of the thinking that it may annoy the tenant which may lead to something else. That approach is not good for the long-term health of your business. If there is any kind of violation you should give the written notice. In fact, while giving notice, you can have a softer and professional verbal explaining with your tenant.
I’ll give you an example.
Let’s say your new tenant fails to pay rent on the rent day. He is into the 4th month of his tenancy. You should wait a reasonable period of time, usually 24 hours and then serve the written notice of late payment of rent. While serving the notice, you should tell them that there is a grace period written in the notice. If they pay the rent within the grace period, the notice would be considered null and void, which is mentioned in the notice.
The benefit of serving written notice is that the tenant can actually read the consequences of not paying the rent on time. Additionally, this written notice creates proof of violation. Which you may use later on in case of repeated violation.
In case of the violations like playing loud music, inviting long-term guests, or decorating without prior approval, you should immediately serve written notices. This approach would keep you out of trouble with your tenants in the long-term.
Conclusion: I can’t stress enough how important these 3 tasks are for the successful landlording. The conscious effort to perform these 3 tasks perfectly would definitely keep you out of trouble and eventually affect the success of your landlord business in a positive manner.
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