How To Be A Good Landlord

If you’ve ever rented, you’ll understand the difference between a bad landlord and a good landlord. But, if you own an investment property, making sure you avoid the bad landlord mistakes is key to enjoying a sustainable investment, without the stress. Make sure you get the best possible insurance to protect your property investment, and try these tips on how to be a good landlord. Your tenants will thank you for it.

Real Estate Institute of Australia statistics show there are around two million landlords and three million rental properties in Australia. Approximately one-third of these rental properties are self-managed, without the support of a real estate agency and dedicated property manager.

Whether you choose to be a hands-on landlord or leave it to the professionals, though, you can still take steps to manage your property investment in a way that helps create a home for happy tenants who will, hopefully, look after the property as if it was their own.

8 tips for being a good landlord

1. Clear communication

A good landlord communicates clearly – and efficiently. This means that when you get the call or email from your tenant (or property manager) to alert you to an issue, you will deal with it quickly and give clear instructions.

2. Careful documentation

As a good landlord, documentation is critical.

By having everything in writing, including a professional lease between yourself and your tenant, everyone involved understands their rights and responsibilities.

3. Manage maintenance quickly

Tenants put this as one of their biggest concerns. No matter what the maintenance issue is, you need to imagine you’re the one living there. Would you want to wait to get a hot water service working, a dishwasher repaired, or a faulty door lock fixed?

Helping your tenants feel at home is about doing what you can to provide a safe, comfortable place to live. So if it’s broken, just fix it – fast! (And look into the appropriate insurance, including landlord insurance and building insurance, that might help offset some of these maintenance issues.)

4. Deliver quality customer service

If you’re a landlord, you’re a service provider and your tenant is your customer.

Instead of letting emotions rule your decision-making, remember that the property lease between your tenant and yourself is a business transaction. Yes, you want to generate profit but you’re less likely to do that sustainably if you create disgruntled tenants who feel like you’re not looking after their needs – despite the hefty rent they pay you – things can go wrong very quickly and leave you out of pocket.

5. Be reasonable

A good landlord is reasonable. That means understanding the difference between normal wear and tear and actual damage. When it’s time to do final inspections and approve the return of bond payments, be fair – not petty.

6. Be prepared to be flexible (within reason)

We’re not advocating for tenants who treat you poorly and don’t pay on time, but, sometimes, a little human kindness is a good thing. If your tenants are going through a tough time and communicate this properly with you, consider a bit of leeway, rather than immediately seek eviction.

Yes, you have your own financial pressures and, yes, renting is a business agreement from their end too … but by listening to their story and seeing if you can make an occasional exception, you can avoid expensive re-letting fees and wasted time.

7. Inspect your investment

Conducting a regular inspection of your property isn’t just for your own peace of mind to know that your tenant is looking after it – it also lets you know what little maintenance jobs might need prioritising before they lead to bigger repair bills.

8. Consider hiring a property manager to look after your property

Check online reviews to find a property manager who actually seems to care about your investment. Be clear on what they offer (regular inspections/communication with the tenant), so you can feel satisfied that what you pay them is helping you prospect your investment.

The bottom line

Investing in property is a big deal and having a tenant can create a fantastic rental income (and pay your mortgage down faster). But managing a rental property can also be stressful and leave you facing unwanted out-of-pocket expenses. Being a good landlord can’t guarantee your tenants will always do the right thing by you, but it’s a positive start.

By treating your tenants well and dealing with maintenance issues quickly and respectfully, you can help create a positive landlord/tenant relationship that could help you enjoy loyal tenants who take the headache out of property management.

Go deeper: Understanding landlord insurance

Financial disclaimer The information contained on this web page is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. You should check with a financial professional before making any decisions. Any opinions expressed within an article are those of the author and do not specifically reflect the views of Compare Club Australia Pty Ltd.