When new real estate investors first start dipping their toes into the water, they experience a brand new business world unlike any they’ve ever dealt with before. For many, becoming a landlord seems straightforward, maybe even easy. The reality is that managing rental property is challenging work. It must be approached with the same respect one would treat any other business venture.
When you treat your property management like a proper business, it comes back to you in many ways. Tenants will appreciate your professionalism and word of your professionally-managed buildings will likely spread. Word of mouth is a powerful force for a business, and you want people saying good things about you. You wouldn’t want potential tenants to avoid working with you because they heard you were difficult, disorganized, or a poor manager.
There are a number of things to avoid when getting into the real estate business as a property owner and landlord. It’s incredibly important not to let things get personal with your tenants. Your relationship should be strictly business. Allowing personal feelings, anger, or pettiness encroach on your arrangement will make everyone’s life difficult, yours most of all. Any policy you apply to one tenant should be applied to all tenants, no exceptions.
Some property owners start out as landlords of their own first homes or properties. This can become complicated when you’re emotionally invested in the home. It’s very important not to allow emotional attachment to get in the way. In order for your new business to work, you’ll have to allow other tenants in your former (or current) home. A certain amount of emotional separation will likely be essential.
Keep communications brief and professional – never say more than you have to say. Additionally, it’s best to keep extensive records of all finances, contracts, and conversations you have. These records will come in handy should a dispute ever arise.
If you’re feeling overwhelmed, there are resources available for you. Contact Alliance Property Management to discuss the possibility of working with experienced property managers, real estate agents, and more.