Strictly business: managing your investments
Are you considering befriending your tenants? It might be a decision you come to regret if you decide to mix business with pleasure.
It may seem like a great idea to introduce yourself to your tenants because you’d presume they’d have a greater respect for your belongings than a complete stranger.
However, forming relationships with tenants can backfire, in some instances, as the lines become blurred between friend and landlord.
For example, a tenant you’ve become good friends with may start stretching the terms of the rental agreement by:
- Failing to pay rent on time
- Not maintaining the property adequately
- Bringing pets into the house
If you’re a self-managing landlord and you’ve become good friends with the tenant, these types of scenarios can become tricky to handle, particularly if it gets to the stage where the tenant needs to be evicted.
As a landlord you may also become amenable to their requests or situation.
This is not to say that you can’t be courteous or sympathetic to your tenants, but the relationship should be maintained at arm’s length – being friendly is different from being friends.
The key to being a good property manager is that you need to treat your investment property like a business.
That’s a primary reason why you should utilise a professional property manager who will act as an intermediary and help remove the emotional decision making process when significant issues arise.
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