Key traits of a successful landlord
26 September 2019
When it comes to building your investment portfolio, choosing the right property is only part of the equation. Managing your property is where the smarts come into play
You can’t be a ‘set and forget’ landlord! You would know that as a landlord, you will need to invest time and money into maintaining your property. You need to stay up-to-date with the real estate market, in general, to minimise vacancies and keep your portfolio progressing forward. However, this alone, may not make you successful.
Here are critical traits of what a successful landlord looks like.
- Know your strengths and weaknesses
Your strengths are things you can leverage on, things you can use to push yourself further. On the other hand, your shortcomings are not your downfall. These are areas you need to improve on. It is not something you lack. It is something you need to develop and build.
For your weaknesses, leave these type of jobs for the professionals, such as property managers. There is a lot more work involved in managing a property than you may expect, including regulatory compliance.
- Build Relationships
The key to being a successful investor lies in the ability to develop strong relationships with your property manager. A good property manager will do more than just collect the rent from your tenants. A great property manager will provide regular reviews and will advise you about the rental market and when to increase/decrease your rent to maximise your rental income.
A property manager isn’t the only relationship that a successful landlord has; their relationship with their tenants is also significant. Being on good terms with your tenants goes a long way, and relies on open communication.
If you have a favourable relationship with your tenants, chances are they will take care of your property, increase in rent will be more palatable and tenants may even conduct low maintenance tasks themselves. Mutual respect between landlord and tenants may lead to more lease renewals.
- Do your research
It is imperative to stay abreast of real estate trends as well as the specific market conditions in the location of each investment property. At the end of the day, you are the only one in a position to make the big decisions. Be sure to stay ahead of regulatory changes that can affect landlord responsibilities and obligations, each Australian state and territory has its own specific requirements, so do your research.
In summary, it is about getting the right team around you, dealing with people fairly, backing yourself with the best information available and keeping the big picture in mind. Keep these priorities in check, and you will slowly but surely march towards financial independence.
Who is FutureRent?
FutureRent gives landlords flexibility, with early access to their rental income. Find out more about FutureRent here.