A landlord/tenant relationship can have a significant impact on your life. I would go so far as to equate this relationship to a marriage. It demands effective communication, understanding and empathy on both sides, and can have harmful ramifications if left unattended or under-appreciated.
Perhaps this analogy is somewhat crude and excessive! However, it emphasises my point that landlord/tenant relationships are important. While it may require more work and effort on your end, fostering a healthy and sustainable landlord/tenant relationship can only bring you benefits and peace of mind.
I’ve been a landlord since the mid-2000s. In that time, I’ve had my share of positive and negative experiences. More importantly, I’ve identified the key traits and behaviours that are required to build strong landlord/tenant relationships, which I will share with you all below.
Tips for building a strong landlord/tenant relationship
Empathy is key
Transactional landlords are not successful landlords. Understand your tenant’s current position and circumstances, and be receptive to their changing needs.
Be prepared and comfortable for this empathetic approach to be to your detriment. For instance, due to COVID-19 restrictions, I was anticipating rent abatement requests and potential vacancies at most of our rental properties. Instead of worrying, I contacted each of my tenants to understand their position and offer any required support.
To-date, I’ve not lost a tenant from COVID restrictions, nor have I received a rent reduction abatement request. However, the frequent check-ins were necessary for strengthening the landlord/tenant relationships.
This should not be difficult to achieve if you have an open and healthy dynamic with your tenant, and you treat your tenants as more than just an income stream.
When owning a rental property, unfortunate things can and will happen. Water pipes burst. The HVAC system stops working in the middle of winter. A seasonal storm causes damage to the property.
As a landlord, I’ve found it is more important to respond quickly to these issues, than it is to resolve it. Most tenants will understand that some problems cannot be resolved quickly. However, they appreciate a quick response from the landlord that something will be done to fix the issue.
A Landlord/Tenant Relationship Requires healthy rapport
As mentioned above, I’ve sought to introduce myself and get to know my tenants, regardless of whether there is a property manager interposed in the relationship. I think this is necessary to avoid the impression of callousness and disregard for the tenant.
Property managers can certainly be used to assume that role on your behalf. However, I’ve found that tenants do not feel comfortable enough to raise concerns or requests. Some are OK with this dynamic, but I personally don’t believe that it is conducive to a long-lasting landlord/tenant relationship.
Flexibility goes a long way in a landlord/Tenant Relationship
To-date (touch wood!), I have not had an instance of a late rental payment or delinquency. At the same time, I have communicated to my tenants that I appreciate some months may be trickier and others. In those instances, I have no issue with you making a rental payment a few days late if it helps. None of my tenants have needed to take me up on my offer, but they have appreciated it nonetheless.
Oftentimes, tenants may also want to make changes or additions to the property, to make it feel more like their own. You should remember that not all requests can be honoured. However, you should endeavour to have an open dialogue with the tenant and understand why they wish to make changes. In my experience, I’ve found these requests to be completely reasonable and have been happy to allow them.
I’ve been a landlord for nearly 15 years. I credit this longevity to the established relationships I have with my tenants. What started off as an experiment has blossomed into a reliable source of income for me and family, as well as a key contributor to the overall value of my investment portfolio.
If you’re interested in a more relaxed arrangement, such as Airbnb hosting, check out my earlier post on how I became an Airbnb host!
The content outlined above was written, edited and published by the Lost Realtor. The author has over 20 years or real estate sales and investing experience in the Australian property market. He has held senior positions in Australian building companies, including being the General Manager of the residential sales division of Collier Homes. His qualifications include a Bachelor of Commerce degree and a Graduate Diploma in Building and Construction Law.