On the surface, owning rental properties looks like an easy way to make money to people who are not aware of all the work and planning involved. The truth is that it can quickly defeat and bankrupt novice investors. However, for the right people, it is the best way to build and maintain wealth. It is still a tough business that requires a lot of long hours and hard work, but it can be quite lucrative for people with the following five traits. If you do not possess these traits, you should carefully consider if it is possible for you to develop them. They are vital for becoming a successful rental property manager or owner. So what are the common characteristics found in successful Landlords?
When asked about their success, many people will cite an unrelenting commitment to their vision. The market fluctuates. The local economy may change. Successful landlords know enough to weather changes in the market without throwing up their hands and selling for a devastating loss, allowing someone else to make a killing off of their hard work and investment. This same commitment applies to knowing what rules are best for your rental properties and not backing down when confronted by difficult tenants.
All properties are going to need repairs and upkeep. Properties are subject to wear and tear from tenants and the unrelenting sun, rain, and winter weather. Property owners must be able to recognize minor problems before they become major expenses. Even if you do not make needed repairs yourself, you need to be knowledgeable enough to see that the job is done right and that whoever you contract to do the work does not take advantage of you.
Landlords face ongoing problems with their properties and their tenants. These can include zoning issues, garbage collection, and worrisome tenants who violate your rules – and possibly local laws. Good property managers have the ability to analyze situations quickly and determine the best course of action. This skill is difficult to develop, but it is perhaps one of the most important ones for being a successful landlord.
Another skill that is difficult to acquire but essential for managing rental properties is being able to read people and effectively screen tenants. All landlords must comply with Fair Housing Laws, but you do no want to blindly accept every tenant who comes along. Trusting your judgment when interviewing tenants can save you a great deal of problems down the road.
Regardless of planning and preparedness, there are going to be difficult times. Good landlords recognize what led to the problem and make sure it does not happen again. They don’t wallow in self-pity and beat themselves up over it. Nobody is perfect. The one common denominator for success is persistence.