The Balancing Act Of Being A Landlord

It is often said, as a landlord, you are not managing property, you are managing people. When you are in the business of managing people, you need to be equipped with the necessary tools for doing a good job of people management.

From landlords who hate conflict and wind up walked all over to landlords who cannot keep good tenants because they upset their tenants at every turn, there is a pendulum swing of bad landlord/tenant relationships. Where do you find yourself falling on the pendulum swing?

By identifying which side you struggle with

• Being the pushover
  OR
• Being the hard ass

you can improve upon creating a balance. Here are four quick tips for being a balanced landlord.

1. It Starts With Your Inner Balance

It might sound too much like a yoga class for your taste but the reality is that, in order to be a balanced landlord that can handle tenant relationships, you must first find your inner balance. For example, if you have zero confidence in yourself and are scared of hurting anyone’s feelings, you will be destroyed by tenants who take advantage of your weakness. Conversely, if you are a hot head that treats tenants like they are all out to get you, you’ll ruin the chance at building a strong relationship with excellent tenants.

Find your inner balance and recognize that to run this business (because landlording is a business) you need to find your strength and peace. If you need to take a kickboxing class to dissipate your anger or you need to join a Toastmasters club to help you build confidence, do what it takes. You have to be centered and ready to handle every storm before you take on the daunting task of landlording.

2. It Starts Right Away

Another important thing to note is that the landlord/tenant relationship starts from the very first encounter a tenant has with you. The moment they read your property listing, the relationship starts. The language you use in your property listing matters. How you interact during the property showing impacts the relationship. The way you handle the application process matters. Every moment contributes to the type of relationship you will have.

Start off on the right foot. Be professional, courteous, and in charge of the situation. For example, if you are prone toward being a pushover, be careful you don’t start making exceptions right away. When you are showing the property and an applicant is interested, they might ask you about upgrades and changes they want to the property. If you are renting it as is, now is the time to create the boundaries that will set the tone for the rest of your relationship. If you start negotiating and agreeing to changes this early-on, you will likely face a slew of other similar requests from the applicants when they become tenants.

Conversely, if you know you can be a bit of a hard ass, coach yourself on being more inviting. You don’t want to scare away responsible and respectful tenants by being unpleasant. You might even consider bringing in some extra help. For example, maybe your spouse is more personable than you. Invite them along to showings to help create a warmer environment.

3. It Requires Discernment

Ultimately, creating a beneficial landlord/tenant relationship will require discernment. Some of this will be learned via valuable lessons. Some of it requires you establishing rules and boundaries for yourself. Some of it requires listening to your gut when you absolutely know you are right.

For example, if you have had the same responsible tenant in your unit who has paid rent on time every month for five years, and they suddenly have a family emergency and pay rent a week late, you might discern that it is worth waiving the late rent fee for them. In this scenario, you might evaluate the value of keeping an amicable landlord/tenant relationship as being worth more than the late fee.

Conversely, if a new tenant moves in and they are late on rent the first two months in a row and they ask for you to waive the fee while telling you a sob story, you might discern that in this situation you need to stick to your policy.

There is no hard and fast rule for the scenarios you will encounter. You will need to learn how to discern and how to establish a relationship that is fair and respectful to both parties.

4. It Is Made Better Through Proper Screening

Establishing a balanced and fair landlord/tenant relationship will be impossible if you don’t screen tenants properly. If you fill your rental properties with problem tenants, you won’t be able to fix the situation through a professional and respectful relationship. You will never be afforded the chance to build a rewarding relationship because your tenants will not be contributing. Tenant screening will save you from dealing with tenants who constantly require you to police them and play the role of enforcer. No one wants to spend their life filing evictions, issuing warnings, and other unpleasant tasks. Avoid the necessity for these hard tactics by creating solid criteria for tenants.

Where do you find yourself falling on this scale? What has helped you find balance?