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A Well Respected Landlord

Category: Landlords

A new client asked me recently how they could go beyond the realms of standard practice and become a well-respected landlord.

It makes sense that if you're perceived as a pro-active landlord, you're more likely to attract better tenants for longer and, in turn, improve the performance of your asset.

Having read much on the subject over the years, it's fair to say that adopting a business mindset with your rental property is the most logical step.

Besides removing emotion from the equation - particularly if the property was once your family home - the focus shifts from anxiety to maximising returns and creating better cash flow.

Just as we recently spoke about long-term landlords using the equity from capital gains to explore new investment opportunities, I'd recommend that you consult your property manager and financial advisers about how to optimise your bottom line, and then make informed decisions in all your property dealings.

But for continued success, never forget the most basic requirement is keeping your customer happy. At its simplest, this means promptly and properly attending to any issues to maintain trust and loyalty.

Try sleeping with the noise of a dripping tap in the background, dealing with a recurring electrical problem, or going online with a dial-up connection. With any of these scenarios you soon realise that frustrations can mount faster than the data in an NBN connection.

In essence, don't allow any doubts to linger and fester about your property's long-term appeal. After all, fostering a sense of stability and satisfaction will mutually benefit the customer and business.

There will always be the balancing act of staying in line with market expectations and the rising cost of living. Exemplifying the saying that 'A bird in the hand is worth two in the bush', it's more important to receive $5 or $10 below market value than losing an entire week's rent or worse.

Likewise with rent increases in more prosperous times, it's more feasible for tenants to absorb small changes regularly rather than sending them into a state of shock with a one-off massive hike.

Everyone in life wants to be treated fairly, so by extending that philosophy to your property portfolio, you'll be well on your way to being a good landlord, and delivering peace of mind for all.