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Building a Good Landlord/Tenant Relationship

Kevin Perk
3 min read

The landlord tenant relationship can be one filled with conflict, where the landlord is always fighting to collect the rent and the tenants are always fighting to get things repaired or trashing the property.  Or, it can be a relationship that is professional, where standards are spelled out, procedures are detailed and rules are followed.  The choice of which one you have is up to you.

As a landlord, you set the bar for your rental properties.  You can either run them by the seat of your pants, or you can run things in a professional, business like manner.  Each method will yield you wildly different results.

The First Method

Let’s take a look at the first method.  Joe Landlord decided he wanted to get into real estate some time back because he heard he could make some good money.  Without researching anything, he went and bought several rental properties.  He got his lease from the local office superstore.  He bought a “For Rent” sign from Home Depot and inked in his phone number.  He took the first decent looking person that come along and moved them right into his property.  He thought that all he would have to do now is collect checks.

He never figured that things break, so he had little money for repairs and not the slightest idea who he could call to get something fixed.  He never figured his lack of making repairs would lead to resentment on the part of his tenant.   He never thought someone would not pay the rent.  Now he has a broken down property, an angry tenant who is not paying.  Will his lease help?  Not likely.  Leases should be state and local specific.  Will he get the tenant out?  Eventually he will.  Will he collect on the damages done?  Unlikely since there few if any move in procedures or documentation made of what existed before the tenant moved in.

Joe set himself up to fail and set himself up for a number of conflicts.  All of which could likely have been avoided had he treated his rentals a bit more like a business.  I once heard a guru say that tenants are very much like employees.  That has stuck with me for years because I believe it to be a very accurate description of the landlord/tenant relationship.  Most employee/employer relationships have policies and procedures in place to guide that relationship.  Your landlord/tenant relationship should also have policies and procedures in place to guide your relationship and reduce the chances for conflict and headaches.

The Second Method

Remember, you as a landlord set the bar for the relationship.  Set it high.  Think about what you are getting into and seek competent advice from other landlords.  Develop a lease that is specific to your area.  Have it reviewed by a competent attorney.  Develop and set of tenant screening criteria.  Develop a move in and move out procedure that ensures you get your property back in good order.

Develop policies and state them upfront as to what happens if:

  • The rent is late or not paid
  • Utility payments are not made
  • House rules are not followed
  • Damages are caused by the tenant and/or their guests.

Determine in advance what your policy is if a tenant wants to:

  • Have a pet
  • Switch roommates
  • Break the lease and move out early
  • Hold an apartment for a couple of months
  • Make partial payments due to income problems.

Having all of the above developed and discussed on the front end will make both yours and your tenant’s life much easier.  Everyone will be clear as to what is expected.

I am sure that this seems like a lot.  But it is important if you want to be successful as a landlord.  One of the biggest complaints I hear about being a landlord is dealing with the tenants.  Well, having a clear set of rules, guidelines and policies can really cut down on the conflict and provide a much smoother ride.
Photo Credit: dhendrix73

Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.