There are lots of side hustles out there today for young professionals, and getting into real estate is a pretty common one. I won’t say it’s easy to do, but it is doable, and it’s a great way to build passive income that isn’t tied to the daily ups and downs of the stock market. Mrs. Money and I have been a landlord for a few years now, and although it’s had it’s ups and downs, it’s on the whole been a positive experience.

Depending on your previous living situations, you might have strong thoughts on landlords, perhaps you had a great experience and loved it, or perhaps your landlord was terrible and was a pain to work with. On the other side of the coin, as a landlord, a good or bad tenant can really make or break your experience. As a landlord, there thankfully are ways that you can provide a good experience for your tenants, and set yourself up for more success for more money and less headaches!

Here are five ways you can be a good landlord who’ll leave a good impression on your tenants and other landlords:

1. Act like it’s a business

This is honestly some of the best advice Mrs. Money and I got early on, and I’m so glad we followed it. As a business, your tenants pay for your services, which is to shelter them and keep that shelter livable. They also rely on you to fix any problem they encounter with your property, including leaky pipes to noisy neighbors.

Businesses run better when there’s good communication, clear expectations, and good organization. All of these apply to being a landlord. Firstly, do a thorough job of screening your tenants. Require background checks that include a credit and criminal history. Secondly, have a strong lease. Spell everything out and be very clear about expectations. Review this with the prospective tenants to ensure they’re crystal clear. Thirdly, ensure both parties uphold their responsibilities. It may feel awkward to remind the tenant to cut the grass or pay their rent or even charge a late fee, bu always be professional and always be firm. On your side, maintain the house and be prompt to response and address issues that will come up.

Finally, you must be organized. Keep all documentation clearly organized and stored somewhere you can quickly access it. Keep a good spreadsheet of all income and expenses – this is critical for when tax time comes around!

2. Don’t take in bad tenants

Like you wouldn’t serve rude customers who can ruin the service other customers are receiving, you should avoid letting tenants with bad records. Your property is not a charity, it’s a business, and the key to running a business is to have good income. Bad tenants can make your life as a landlord pretty miserable, and also hurt you financially.

As a landlord, it’s your responsibility and right to screen potential tenants to keep yourself, your property, and the people currently renting your property safe. The last thing you want is to chase after unpaid dues and clean up after bad tenants’ messy ways.

Not only do you risk the experience of your current tenants, but you also risk the whole business itself. The bad tenant can push your current tenants out of a lease and look for a new place.

Run a good and solid background check on ALL potential candidates. Of course don’t discriminate based on any protected classes and be gracious to all applicants!

3. Comply with safety standards

Anywhere you choose to build and put your property up for rent, there are always several established safety standards to be met. It’s your obligation as a landlord and someone running a business.

Adhering to safety standards such as an electrical installation condition inspection, Housing Health and Safety Rating System inspection, and many more. Compliance with safety standards will let you run your business without having brush-ups with the law, or worse, having accidents that can lead to injuries. Those accidents can turn into expensive lawsuits.

Take some time to review any local rules or regulations, and also do an inspection of your own to make sure your property is safe! Catching something now can save you headaches and money later if it gets worse. Also take pride in your business by providing a quality product for your renters.

4. Make yourself approachable

Besides keeping your property safe and comfortable, another thing that can make you a good landlord is to be approachable. Tenants will run to you to fix problems with their living spaces, mainly because it’s your responsibility to fix those problems.

Take things a step further by checking in on them as much as possible without making them feel uncomfortable. Including a few efforts to ensure your tenants’ satisfaction will go a long way, along with longer lease contracts.

It’d also pay off to be a landlord who gets things done when their tenants need assistance. They can’t touch something on your property without your permission. Be easy to talk to and be nice.

5. Keep your distance

They may be living in a property you own, but that doesn’t mean you can pop in for a visit any time you feel like doing so. That makes people uncomfortable, and your tenants are not your relatives. If you need to come by for important matters, make sure you tell them when you’re coming and the reason behind you showing up.

This prevents problems that can get you involved with law enforcement. You wouldn’t want to be tagged as a landlord who takes advantage of their role. This will keep new tenants away and will be bad for the business.

Summary

Being a landlord doesn’t have to be a hard or difficult experience! Being kind, organized and business savvy will go a long way for both you as the landlord and your tenants!

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