LANDLORDING: FEWER RULES AND ENFORCEMENT ARE KEY
Many small mom and pop type investors give up the opportunity to make a ton of money and have a wonderful free come and-go” lifestyle simply because they never see the importance of learning to be a skilled landlord. You don’t become a skilled landlord when you acquire houses. You become the owner-that’s all! Skilled landlording will take some education.
Basically there’s just two ways to learn landlording. You can learn from people like me or you can learn from the tenants. If you pay me 10 times more than I charge to teach you, it’s cheaper than learning this job from your tenants.
” … there are unscrupulous landlords as well as naughty tenants.”
The Pitfalls of Management
Every landlord should know and understand landlord-tenant laws in his own area. Once you know the laws, your fear of renters or of being intimidated will vanish. An overwhelming number of property owners incorrectly assume these laws favor deadbeat tenants. I can assure you this is not the case, although sometimes it appears that way. Laws are mostly about equity. Remember, there are unscrupulous landlords as well as naughty tenants.
Landlords often find themselves in serious hot water with tenants because they try to inject too much logic and common sense into tenant management. Logic and common sense have their place, but they seldom count for much where legal issues are concerned. For example, it is nearly impossible to effectively force your personal living standards and ideals on your tenants. To do so could seriously affect your sanity. What earthly good would it do to make a million dollars from your rental properties if your tenants drive you crazy?
Professional property managers rarely act mostly they react.
The Keys to Good Management
Enforcement of the rules, whether civil code laws or your own house rules is the best way you develop a smooth running management operation. Preventative techniques are as important to managing tenants as they are for the doctor who manages your personal health. One of my main criticisms about professional property managers is that they rarely act-mostly they react. They’re always ready and willing to fix the busted door, but only after the horse is outta the barn.
Rent monies are life blood to apartment owners. Yet, I know many property managers and owners alike who participate with their tenants each month in a silly little “rent collection ritual.” The tenant starts the game by saying the checks in the mail. Then the landlord begins calling every day or driving out to the property to inform the tenant he hasn’t received it yet. This can go on for weeks.
Don’t allow yourself to be part of this game. Use the rules already on the books: the state landlord-tenant civil laws and your rental contract terms agreed to by your tenant.
Action Keeps landlords One Jump Ahead
Landlords who learn to act before small problems become big will control most tenants. This strategy works very well for collecting rents and also for enforcing your tenant rules. Many landlords have too many rules. It’s better to keep your list of rules short and enforceable.
Would you rather be popular or profitable? You don’t have to be greedy to be a wealthy landlord. What you must be is a fair-minded business person. Fair-minded means that rents are collected in a timely manner and that your houses are maintained properly by the tenants who lease them. See how simple this stuff is.
You won’t be hated when you demand timely rents. Landlords that insist on timely rents are no different than cashiers in the supermarket.
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