5 Landlording tips from an industry PRO

You have decided you are going to go ahead and give real estate investing a try. Why not, it seems to be the popular thing these days. According to Forbes the real estate industry is the 8th most common Billionaire producing industry in the U.S. So without further ado here are 5 land lording tips from an industry pro that will help you make your fortune.

5 Landlording tips from an industry PRO.

1. BUY DOOR HANDLES THAT HAVE NO LOCK.

When you change them between tenants you only need to change the deadbolt. This will save you time and money.

• No more lockouts. It is virtually impossible for tenants to lock themselves out if the only way they can lock the door is when they are outside of the home or apartment with their key in their possession.
• These are going to be your best friend. The only way to lock the door will be with the deadbolt. This is going solve multiple problems and annoyances.
• Less keys for you. Time and time again I have purchased a property that has two doors and the owner hands me a bucket or a bag of keys....Why? Too many locks throughout the years. If you have a home you need only one key for the entire house

2.TREAT YOUR TENANTS LIKE EMPLOYEES, NOT CUSTOMERS.

SIDE NOTE: Why did they cancel Boss with Kelsey Grammer after only two seasons? That was one heck of a show. Personally I think Kelsey can give Frank Underwood a run for his money.

It is human nature to think of a tenant as a customer. They are buying a product from you. You are exchanging shelter for their money thus they are a customer, right? Wrong. In reality they are more like an employee and you need to be their boss. Their job is to pay you money in exchange for the shelter you are providing them. Employees and tenants both need a strict set of rules that must be followed. Customers on the other hand are always right. Employees and tenants do not share that privilege. Good employees make their employers money just like good tenants make landlords money. If they do not do their job they cost you money just like a bad employee costs their employer money. In the event they stop paying you that money you must stop providing them the shelter as soon as possible. This means you must fire them via eviction.

3. ACES IN THEIR PLACES

Putting some elbow grease into a real estate investment can be a great money saving thing to do. It can really help out your bottom line however, you need to know when you should put in the elbow grease and when you should call in the experts. It is never a good idea to be penny wise and pound foolish. As a rule of thumb there are a few things you want to rely on your aces.

• Electrical
• HVAC
• Plumbing
• Legal
• Sales

If handled improperly electrical, HVAC and plumbing can all have serious complications that can lead to injury or even death. This of course is an extreme liability that every landlord should avoid. You can face both financial and criminal consequences.

Skimping on legal won’t necessarily cause you injury or death but it can hit you hard in the wallet. A minor misstep in a legal proceeding or a poorly written lease can put a landlord in a very vulnerable position.

When it comes time to sell your investment you want to make sure you get top dollar. Statistics show that homes sold by a real estate agent sell for considerably higher than those sold without. According to the National Association of Realtor’s 2013 Profile of Home Buyers and Sellers, the average FSBO sales price was $174,900, while the average price for a home represented by an agent was $215,000, a difference of $40,100.

Enjoying the article? Show your support by Tweeting it.

4. USE BRIGHT PAPER FOR YOUR EVICTION NOTICE.

When a tenant is behind in rent most if not all states require a landlord to post some type of paperwork on the tenant’s door giving them a certain amount of days to pay, vacate or face possible eviction. In Ohio for instance a landlord is required to post a 3 DAY NOTICE when a tenant is behind in rent. The tenant has 3 days to correct the issue before the landlord is allowed to file for an eviction. When posting these notices use bright orange, green or yellow paper instead of white. Using the bright colored notices will get the tenants attention as the documents look more official and authoritarian.

RELATED: 5 Steps to rent out your house

5. SET OFFICE HOURS.

What is the number one reason tenants call their landlords at inappropriate times of the day or week? It is because their landlords answer their phone at inappropriate times of the day or week. I am sure we have all heard of a pet friendly fellow named Pavlov. In case you have not heard of Pavlov he is the person who discovered classical conditioning.

Classical conditioning (also known as Pavlovian or respondent conditioning) is a learning process in which an innate response to a potent stimulus comes to be elicited in response to a previously neutral stimulus; this is achieved by repeated pairings of the neutral stimulus with the potent stimulus.

The same concept applies in your land lording career. Just like what was discussed in tip number 2 you need to be the boss and set the rules. If you answer your phone at 11pm on Saturday nights you are conditioning your tenants to know that it is ok to call you at that time because you are accessible. They call you and they receive satisfaction. They will continue to repeat the behavior that leads them to receive the satisfaction they seek. If they know the only time you will answer is during your office hours they will naturally only call you during that time as they know calling you outside of that time does them no good, they only receive satisfaction when they call you at appropriate times.

Enjoyed the article? Show your support by Sharing it on Facebook

About the author:

James Wise is the Broker and Owner of The Holton Wise Property Group, a real estate brokerage and property management company operating one of the largest scattered site rental property portfolios in the greater Cleveland, Ohio area. He has been a guest speaker on several real estate internet radio shows and podcasts. He regularly writes blogs and articles for multiple real estate related websites. He is an active member of the National Association of Realtors® and the Akron Cleveland Association of Realtors®.