Management Tips for the "Hands-on" Landlord

Management Tips For The "Hands-on" Landlord

John thought he had done his homework before purchasing his first investment property, a six-unit brownstone in an older, well kept neighborhood. Because of his good credit rating he had gotten a low interest rate on his mortgage. Even better, the building was 100% occupied and the tenants were great, according to the seller.

The day after closing, he went to the property to meet his new tenants. The news that they had a new landlord took them by surprise, but he was pleased at how he handled the situation. Before he left, he took a moment to walk around the lot and reflect on all the great possibilities his future held. At 27, he was hardworking and ambitious. He would save a ton of money by doing his own repairs and management. Life was good.

An older gentleman saw him strolling and walked up, introducing himself as the owner of a similar building across the street. “So you bought this place, eh?” he asked, scratching the stubble on his chin.

“Yes sir,” John said proudly.

“Well, congratulations, son. Now the fun can begin.”

At the time John thought the comment a bit odd and shrugged it off. But three months later he knew exactly what the old man had meant. Being a landlord was not an easy job, and when he found himself flooded with problems resulting from his lack of management savvy he decided he had better quickly educate himself before he drowned. He took note of each negative experience, learned from it, and vowed never to make the same mistake twice. Because landlording is a business in which tenacity and willingness to learn are rewarded with tangible results, John was able to get back on track and went on to purchase many more properties, increasing his net worth all the way.

If you are a do-it-yourself type who is new to landlording,  the learning curve need not be fraught with trial and error. By following these basic tips, your journey on the road to success will be much easier to navigate.

Tip #1: Landlording is a business; treat it like one.