13 Key Tips for Being a Successful Landlord

Being a landlord is more than just investing in property, giving the tenants the key, and collecting the rent every month. If you want to be successful, then you must ensure your tenants are satisfied. Otherwise, you'll end up driving the tenants away, leading to high vacancy rates and turnover costs.

Learning how to be a good landlord takes some practice and a good plan, but it can be done. Attentiveness fosters a good relationship between tenants and landlords, so you'll have to go the extra mile. Here are 13 practical tips that will make it more likely to retain good tenants.

1. Understand and Comply with Rental Laws

One of the main landlord responsibilities that you can't just skip is to understand the rental laws that protect tenants. These regulations will cover things such as security deposits, privacy rights, eviction processes, and more. If you don't respect that, it could end with fines and a bad image.

For instance, many landlords in areas such as New York try to hide their rent-stabilized apartments so they can charge a higher rent price. If the tenant catches on, they can sue for overcharging, because that's illegal.

2. Set Competitive and Fair Rental Prices

You may want to gain high profits by setting up a high price, but that will only work to your disadvantage. Most people can't afford to pay high rent amounts, and even if they rent from you, they'll move out at the first chance they get for a better-priced one. At the same time, you can't underprice it. This could mean loss of profits for you.

A good idea would be to use a market analysis tool such as the one provided by REI Lense. This will help you adjust the rent price based on the rent and mortgage rate trends of the neighborhood. Once you find a proper balance, it could lead to lower vacancy periods and better tenant satisfaction.

3. Screen Tenants Effectively

Tenant screening is important because it keeps you from giving the keys to someone who's going to scam you. Rental scams are on the rise, so make sure to check things such as credit, employment, and background. You may want to use some reputable screening services to speed up the process.

A good idea is to look out for the red flags for rental scams and take them off the acceptance list entirely. It might take a bit longer to find a tenant that fits your bill, but in the long run, it helps you financially. A reliable tenant is more likely to pay you on time, take care of your property, and stay with you in the long term.

4. Communicate Clearly and Regularly with Your Tenants

You don't have to be attached to the hip to your tenant, but it pays in the long run to communicate with them. Once you establish clear lines of communication, it makes it easier to set expectations and address concerns.

For example, you can exchange phone numbers and emails. After that, you can send monthly newsletters or updates on the policy.

This can be beneficial for you because it builds trust and creates retention. Tenants are more likely to stay if you know you won't ghost them the moment there's an issue. It also prevents misunderstandings on both sides and offers peace of mind.

5. Respond to Property Maintenance Requests Promptly

Each property comes with different amenities, but if tenants pay for something, they'll at least want it in working condition. For example, if the heating system breaks down in the middle of a cold month, the last thing they want is a landlord who takes days to send someone over. Plus, the longer you wait, the greater the damage can be in the long run.

Part of your landlord responsibilities include keeping track of maintenance requests and ensuring they are handled properly. If you get a frequent complaint, you might want to implement more than a temporary fix. This keeps tenants happy because they'll feel listened to and cared for.

6. Keep the Property Well-Maintained

As a landlord, you don't have to wait for a tenant to call you when something is broken. Sometimes, they might not even realize if there's a problem (eg, damage to the roof or leaky pipes in concealed areas). If these issues escalate, not only are they difficult to fix, but they can also lower the value of the property.

Some good property management tips include setting up annual or biennial inspections of roofs, gas systems, piping, or electrical components. This is also a good opportunity for you to make sure the property is in good condition and that they didn't do more damage than they disclosed. On the plus side, this keeps the property in mint condition, which makes it more likely for the tenant to continue renting from you.

7. Respect the Privacy of Your Tenants

When you respect the privacy of your tenants, you aren't just abiding by the law. You show that you respect the tenant as well. With time, this helps build a better relationship with your renters and keeps you from experiencing legal conundrums.

Always give notice when you come over and never enter the leased-out property unless the tenant explicitly tells you to (in writing). Also, keep visits within a reasonable hour, unless it's an emergency. For example, if you use your spare key to enter the apartment unannounced, it can lead to penalties and even a lawsuit. Stick to privacy laws to keep this from happening.

8. Set Clear Lease Terms

Conflict rarely appears or drags out if the contract is clear to begin with. Make sure to include everything of importance, such as how many people are allowed to stay, when they'll have to move in or out, whether or not they can have pets, and when the rent is due. Clearly outline the tenant's rights and responsibilities, as well as yours, when you draw the contract.

These terms can take you out of a tough loophole that a tenant could take advantage of.

For example, a landlord in Ontario, Canada, once leased out his three-bedroom apartment to what he believed were three tenants. The contract didn't specify exactly that they couldn't bring more, so within a year, seven extra people moved in. Tension rose because the tenants refused to move out. They refused to pay the rent entirely, and it took 13 months of legal action to get them to move out.

9. Foster a Positive Tenant Relationship

Tenants are more likely to stick with you if they don't feel like they have to walk around on eggshells each time you're around. For this reason, you may want to create a friendly yet professional relationship with them. Be approachable and handle disputes fairly.

A simple holiday card or a prompt repair does a lot in the long run. It makes them feel like they can actually reach out if there's an issue. In the long term, this leads to longer leases.

10. Rely on Technology for Efficient Management

Technology can be your best friend, especially when you have a job or multiple properties. Some of the most useful landlord tips you can get are to automate rent collection and set up a management system for the platform.

Tools such as REI Lense can set you up for strategic growth but consider automated banking options. This spares you from having to go to them every month for rent collection while preventing delays. Chatting apps keep communication open and prevent long-term issues.

11. Understand the Importance of Renters' Insurance

As a landlord, you're not obligated to cover renters' insurance, nor can you force them to do it. That said, this doesn't mean you can't encourage them to obtain it anyway. This can protect belongings they keep in the house while protecting your assets as a landlord.

For example, if the tenant accidentally floods the property or causes a fire, said policy can help cover some of the damage. Insurance helps them because they won't have to pay for repairs themselves. This benefits you too because you won't have to wait for them to scrounge up the money.

12. Create a Clear Move-in and Move-Out Process

A successful landlord always has a good plan, and this means a clear move-in and move-out process. This keeps misunderstandings at a minimum and streamlines the process. For example, during the move-in stage, you can create a checklist of things they have to do, when they can move in, and other relevant things. Document the condition of the unit so you know what you're leaving them with.

During the move-out, use that checklist to make sure you get the house back in the same condition. Explain when you'll return the deposit if the house and the belongings are intact. Transparency keeps things smooth.

13. Stay updated on Market Trends

The market never stops changing. Tenants can have different expectations, laws might change, and the value of the property could change as well.

Keep your eye on the news to stay ahead of market trends. Perhaps even join a landlord forum to gain some insight from your peers. This keeps your investments from falling behind.

The Bottom Line

Being a successful landlord comes with responsibilities, like it does with any other business. You need to show professionalism and consistency while being willing to adapt. Use tools such as REI Lense to keep your investment relevant so it keeps bringing you profit!