Every relationship has phases. Some are longer than others, and occasionally, you might wish that you could bypass a step or two. Regarding the landlord-tenant relationship, there are four key phases that can lead to a successful renting experience.
Of course, each phase is subject to its own challenges and solutions, which is why we wanted to give you a quick guide as you begin to explore the world of real estate investing and cash offers for rental properties.
Importance of a Good Landlord-Tenant Relationship
As a landlord, you must establish good relationships with your tenants. Landlords and tenants should be willing to meet halfway to resolve issues and make the renting experience positive. A strong relationship will ensure tenants become long-term renters, making it easier for landlords to sustain their profits. Even if the tenant has to vacate their rental, a good relationship can mean they recommend the property to someone they know.
A good relationship can also reduce the number of issues landlords have to manage, such as collecting rent on time or handling disputes. Tenants are also more likely to report minor maintenance issues before they turn into a more expensive repair or emergency.
Tenant Benefits and Landlord Benefits
There are many benefits to fostering a landlord-tenant relationship. Both groups can benefit from a quality relationship.
Benefits for Tenants
When tenants have a good relationship with their landlord, their renting experience is more likely to be positive. Landlords are often more willing to help tenants who have built a good relationship with them, such as promptly fixing maintenance issues or forgiving late rent. If the landlord has to increase rent to account for property expenses, they may be less likely to raise the rent to the max if they know the tenants care about the property. Landlords are also more likely to be forgiving if tenants are late for a meeting due to an emergency.
Benefits for Landlords
Landlords can benefit just as much from a quality relationship with their tenants. Tenants are less likely to seek another rental property if they’re happy with their landlord. Decreasing tenant turnover rates can help landlords sustain their income and profitability. Tenants will also care more about their landlord rather than seeing them just as someone who collects their rent. Landlords are also more likely to hear about certain issues sooner, such as maintenance issues or late rent.
Phases of the Landlord-Tenant Relationship and Tips for Each
Understanding the phases of the landlord-tenant relationship will make it easier for you to foster a quality relationship with your tenants. Learn about the four phases and advice for private landlords to achieve the most successful relationship with your tenants possible.
Phase 1. The First Walk-Through
The first phase of the landlord-tenant relationship is the initial walk-through. During this stage, landlords and renters focus on making a good impression. The landlord should take the lead by opening clear communications with prospective tenants. In return, tenants will want to assess the landlord’s communication style. Is it clear, effective and open? Can the landlord be relied on to answer questions and respond quickly?
As landlords complete the first walk-through, they should also take a moment to assess how the tenant has behaved. Was the tenant professional? Did the tenant take notes? Did the tenant allude to any potential red flags on their application? By the end of the first walk-through, the landlord and the tenant should have a good idea if the relationship is off to a good start.
Phase 2. The Application
As part of the application, landlords should ask for proof of income and at least three references. The landlord should also receive permission to run a credit check and, if applicable, a background check. The tenant should take the time to fill out all aspects of the rental application carefully.
As a general rule of thumb, they should have all their documents ready before beginning phase one. Competitive markets will see multiple applications, so tenants will want to have their documents and finances prepared to make a great first impression during phase one.
Phase 3. Moving In
Landlords should take time-date-stamped photos before a tenant moves in. These photos will be used to compare the state of the property at move-in to its final state upon move-out. During the move-in process, the tenant should alert the landlord of potential damages or issues.
Communication is key to a successful move-in and subsequent landlord-tenant relationship, whether you’re dealing with a broken light bulb or a dent in a door. With this in mind, landlords should clearly communicate regarding rents, their expectations of a good tenant and their role in maintaining the property and completing repairs.
Phase 4. Moving Out
Most landlords prefer to avoid high turnover. However, in the “renting game,” it is inevitable that people will move in and out of properties. The key is, once again, communication. Tenants typically need to give between 30 – 60 days’ notice regarding their lease renewal.
Landlords should use this time to prepare the property for future tenants. In some cases, landlords might be forced to evict tenants. In the latter instance, it is essential that landlords carefully follow the rules and regulations associated with an eviction. Unfortunately, one too many bad tenants can make landlords want to sell their homes quickly for cash offers.
When Does Being a Landlord Become Too Much to Handle
It’s not uncommon for landlords to become tired of the job. Sometimes, tenants can be too much to handle, especially if they’re failing to pay their rent on time, damaging the property or choosing not to communicate maintenance problems until it’s too late. You may have to deal with evictions, a long legal process that can take away focus from your property investment and other responsibilities. When landlords have too many of these tenants, it can be challenging to justify continuing to invest in the property.
Other times, landlords struggle with complex landlord-tenant laws. These laws protect landlords and tenants, but if you violate one of these laws, your tenants can sue, even if you never knew that these laws existed. The legal process can take considerable time and effort, and you may need to pay expensive fines. Keeping up with these laws and following them can be too much for some landlords, especially since it can pull you from other duties, such as maintenance requests or expense management.
If You Have Tenant Issues, Selling Your Property Can Reduce Stress
Whether a landlord has successfully rented properties for years, has had trouble with high turnover rates or has had to evict a tenant due to property damage, most rental properties end up with a for-sale sign in their front yard.
If you are tired of jumping through hoops as a landlord and want to sell your home quickly, you should consider turning to HomeGo for a fast sale. HomeGo purchases homes in any condition, including properties damaged by trouble-making tenants. We can start the process and close the deal in just seven days, allowing you to move on to other investments as soon as possible. Contact a HomeGo representative today to sell your rental property with confidence.