Owning rental properties is a tough job. Even more difficult is being a good landlord. It takes a certain skill and business savvy in order to run rental properties. Keeping tenants happy while keeping your own business running smoothly can be a tough achievement. Rarely are there tenants who do not have complaints or who do not try to manipulate the lease agreement. Oftentimes landlords are faced with tenant's lease agreement, presented by the future renter's attorneys. Sometimes you have to perform eviction actions against disagreeable tenants, sacrificing their monthly rental payments, and plunge into a frantic search for new tenants to occupy the emptying space so that you do not lose income. Fortunately, many landlords have been willing to share their experiences and offer advice. Most tips and tricks offered by seasoned landlords actually work to your advantage, and can be of tremendous help in managing your rental properties.
It is not advisable to rent out space to friends or to become friends with current tenants. This will put you at a great disadvantage. Suppose you need to raise the rent when your renter-friend comes in for a lease renewal. How do you think this will play out? It is probable that there will be problems such as, but not limited to, argumentative and disagreeable negotiations, receiving a guilt trip, and losing a renter AND a friend. The grand old saying of "Do not mix business with pleasure..." applies here. In other words, never become close to a renter or rent out a property to friends. This will save you a lot of headache in the near future and protect you from the inevitable - losing a renter and the income it generated for you. However, if you do feel compelled to offer a place to a friend, do lay out the terms up front and be firm about it. Tell your friend that under no circumstances is the future renter allowed to change the agreement in his favor and make sure your friend reads the lease agreement very carefully and signs everything. You need to ensure that there are no loopholes which your friend can use against you and that he completely understands the agreement and that it is set in stone. This way, you can avoid potential issues in the near future.
In order to have your tenants on friendly terms with you (as in paying rent on time, giving you little trouble with lease violations, or having no unauthorized person and/or pet in your rental property), you must also respect their feelings, somewhat. For example, if you are a wealthy person, or at the very least, on the upper end of being prosperous, do not flaunt it. Your tenants most likely have to scrape together every last penny in order to make rent month by month, and seeing their own landlord living well is a discouragement for renters. Do not drive your high-priced car to the property areas (borrow or rent a common car if you only have that one car). Try not to dress to impress. Instead, dress casually yet business-like. You want your tenants to see you as the friendly and approachable landlord. Sensitivity is an important factor in this area.
The most sensitive subject is rent increase when it is time to renew a lease. Most tenants are never pleased to hear that their rent will increase when they renew their lease. In most cases, this is the reason for losing renters. This must be approached gently in order to ensure a smooth negotiation process. But do keep in mind that there are certain, special circumstances that may help you reconsider increasing the rent and can sometimes work to your advantage. If the renter has been a loyal tenant, paying on time and giving you no special trouble, you can negotiate increasing the rental lease by six extra months in lieu of raising the rent. Suppose you carry a one-year lease term at a fixed price, offer a term of 18 months at the same rental rate. Usually, tenants are more than happy to take this offer because they are given yet another year plus six months of the same rent they have always paid and a longer term of residency. This also benefits you in that you have just gotten another six months' worth of rent which means you actually got your initial rent increase payment! If you would rather stick with the rent increase, have papers and documents ready to show them exactly why the increase is necessary, such as cost of living expenses, inflation, taxes, utilities, and so on. Because tenants are aware of the fact that prices do indeed go up every year, they are more than likely to be agreeable to your terms. You can also use a small mental trick - reason with them by telling them that finding a new place to live, including the moving costs, security deposit, and so on, will cost them a lot more than for them to just pay the comparable small increase.
If you follow the above-mentioned simple steps, you are on your way to a better tenant-landlord relationship. Keep a firm yet delicate hand in this. You can also find more tips and tricks, and advice by asking other landlords, preferably ones who have been in the business for a long time. Never let your renters take advantage of you - remember, you are the one running the business, not them!
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