4 Ways Landlords Can Improve Their Relationships With Their Tenants
Investing in a rental property can offer many benefits. Not only can it help provide a steady monthly income, but it can help build your net worth. However, by investing your time with rental properties, as a landlord, you will have to maintain it, and make it attractive for tenants, and find renters who can be trusted.
Often the relationship between landlord and tenant is poor and strained. Talk to any landlord and they are bound to share a tenant horror story or two about an unruly renter. By establishing a more professional and positive relationship with your tenant, you’ll find that you will have less tenant horror stories to share. The following are four ways that landlords can improve their relationships with their tenants.
Often, tenants are afraid to contact their landlord about issues they are experiencing. Sometimes tenants don’t tell their landlords about repairs until the problem worsens or is out of control. Tenants are afraid of asking for help because they don’t want to bother the landlord or are afraid. Landlords should be both supportive and approachable to ensure that their tenants feel comfortable calling in their time of need.
Be An Effective Communicator
A good line of communication is essential to solving many rental problems. Tenants should have an understanding of why something is happening and be given proper notice for anything that may be disruptive. By landlords providing the most up-to-date information, the tenant will be more willing to work with the landlord rather than against.
Be Hands On
When you lease your property, you must be hands on. Often landlords will want to have rent out their property but make little repairs to the home. You should help your tenant feel important by going out of the way to make improvements. Not only will this make your tenants happy, but it will keep your resale value high.
One of the most important things that any landlord can remember is that tenants are people too. Sometimes it can be easy to forget that your tenants are people with feelings and not just a monthly profit. As a landlord, you have a direct impact on the social and emotional environment for other people. That being said, treat your tenants with the same support and respect that you would want.
Riding the heels of an especially strong housing market, investors are turning more and more toward real estate as a viable and profitable business venture. One of the hottest segments of the real estate market is the multifamily housing sector. Despite being a longer process when it comes to generating income and profit than its single-family property investment counterparts, the multifamily market can be extremely profitable when executed properly.
Although it seems counter-intuitive, securing financing for a multifamily property can often be easier than getting the money for a single-family property. The reason for this is because there is a much smaller risk of not generating enough cash flow when there are multiple properties involved. What can often be confusing is calculating the value of a multifamily property because of the myriad of complexities involved. In order to calculate an accurate value, the following considerations must all be examined:
OPERATING EXPENSES: This list of expenses can be varied and long. Examples include snow removal, landscaping, pool maintenance, and pest control.
CAPITAL EXPENDITURES: Also known as CapEx, these funds are used by the property management or investor to acquire new assets or upgrade existing facilities with the intention of improving or increasing the breadth of the operation. Examples of capital expenditures in multifamily properties include new air conditioning units, roofing replacements, playground additions, water heaters, and more. Property managers will want to set aside larger amounts for annual capital expenditures if the property is older since repairs and upgrades will be more likely. Newer properties will not require as much capital expenditure investment, which will make these more attractive to investors.
NET OPERATING INCOME: This definition is self-explanatory. Net operating income is simply the total income generated from the multifamily property after the total operating expenses have been subtracted.
CAP RATE: This calculation is a little more specific. It refers to the exact rate of return from the property after income is considered. These rates are distinct to a certain market and drawn by the kind of property class of the investment. To calculate multifamily value, the net operating income of the property is divided by the cap rate. This is why knowing the cap rate is imperative to understanding the overall value.
If working with a real estate appraiser feels like a frustrating and complicated matter, you’re not alone. There’s a reason it feels as though your appraiser is keeping something from you and that’s because he or she is keeping secrets. Here are a few things you probably didn’t know about your appraiser.
- Appraisers are Under Pressure
When the housing bubble burst a few years ago and created the Great Recession, mortgage lenders weren’t the only ones that took the heat. Appraisers also came under fire and the Dodd-Frank Wall Street Reform and Protection Act of 2010 now requires the government to keep a closer eye on all real estate appraisers. This is why the process is so much more complex and takes more time.
- Appraisers are No Longer Local
Those same reforms have created a situation in which appraisers are often sent to regions with which they have no familiarity. Since they don’t know the markets that are local to the properties they’re appraising, their estimates may be either too low or too high. This can keep a homeowner from getting the true value for their home and, conversely, can prevent a buyer from affording a home that should be within their range.
- Who Does the Appraiser Really Work For?
In a normal home-buying scenario, the buyer pays the fee for the appraiser, which can fall anywhere within the $350 to $500 range. Even so, the appraiser doesn’t work for you and his reports go directly to the lender. This means that neither the buyer nor the seller will likely see the appraisal firsthand. According to federal law, you have to be given a copy of the appraisal, if you submit a written request for it. However, most people aren’t aware of the law, so they never see the appraisal for which they paid.
- Always Get a Second Opinion
It can be beneficial to get an appraisal of your own in advance, so you’ll have something to compare to the official appraiser’s findings. This can be fairly simple by asking your real estate agent to deliver a broker’s price opinion. While your lender may not accept the broker’s opinion in place of the appraisal, it does provide that point of reference. A difference in estimates can end up saving you as much as $20,000 on a home purchase.
Appraisers won’t tell you everything about their jobs. This is partly because they have to react to pressure from banks and that affects every appraisal. By staying alert and seeking outside advice, you may be able to better ensure your appraisal is fair and on point with the area market.
In an effort to separate themselves from the pack, businesses owners and entrepreneurs alike have turned to social media platforms to give their products and services an edge. Some companies create short viral video campaigns for YouTube, live stream their latest product launch on Facebook, or produce compelling photographs for their audience on Instagram.
One social media platform that’s sometimes overlooked by people in the business world is LinkedIn. While some entrepreneurs believe that LinkedIn is just a network for resume posting, the platform actually offers a wide range of tools for business people looking to grow their company.
To learn more about the ways that LinkedIn is a vital tool for entrepreneurs and businesses, read on below!
LinkedIn is Great for Professional Networking
While social media platforms like Facebook, Twitter, and Instagram focus on the social aspect of networking, it can be difficult to make serious inroads on these networks if you’re interested in growing your network on a more professional basis.
LinkedIn, on the other hand, makes growing your professional social network easy by allowing users to search for like-minded professionals in their particular area of expertise. LinkedIn allows users to build relationships with people on both a local level, as well as on national and international levels, too, making the social network unique in its ability to help entrepreneurs quickly find other business savants who are revolutionizing the business landscape in their cities.
LinkedIn has message boards and groups that further allow people to identify who they might want to connect with to grow their business venture. This feature can be an extremely invaluable tool for entrepreneurs who want to expand their product or service into new areas.
Using LinkedIn as a Tool for Product Launches
One innovative way that business owners are using LinkedIn as a vital tool to grow their companies is by creating product-specific LinkedIn pages. That’s right — not only is LinkedIn an excellent option for those posting up your resume, but the platform is also great if you want to showcase the benefits of a product you’ve recently launched.
On LinkedIn, entrepreneurs can create a page for their product or service that is similar to the resume-style profile pages the platform offers. These product pages are a great way to quickly highlight what makes your new product great.
LinkedIn is such an effective tool from a marketing standpoint that a new study indicates that 81% of business-to-business companies are using LinkedIn to advertise their product launches.
Various cultures have different leadership styles. Richard D. Lewis, a British linguist, charted the differences in his book “When Cultures Collide.” Besides he teaches these acumens in seminars.
Spanning from ringi-sho consensus in Japan to structured individualism in the United States of America, the charts look as if intuitively correct, if not separately accurate across a given nation.
Lewis argues that even though the countries may be facing rapid economic and political transformations, there exist some patterns which won’t change anytime soon. They have deeply rooted beliefs and attitudes which make them resist sudden changes in values when pressured to do so.
British managers, for instance, are diplomatic, helpful, casual and willing to compromise, although they can be ruthless when provoked. Regrettably, their strict adherence and conformity to tradition can lead to an inability to understand differing values in others.
On the hand, American managers are aggressive, assertive, goal oriented, optimistic, ready to change, vigorous and confident. They value working together as a team and enhancing corporate spirit. Unfortunately, they value individualism and promoting personal career.
With an incredible grasp of the various issues affecting their company, French managers are more autocratic as well as paternalistic. However, they quickly dismiss opinions of seasoned technical staff and middle managers.
A decentralized and democratic system of management among the Swedish people is incredible. The rationale enhances motivation and productivity among employees. Even so, decisions get delayed sometimes.
Managers in Germany strife to form a seamless system. They have a well-structured chain of command based on every departmental unit. Instructions, as well as information, are passed from the top down to the bottom. The drawback is that they considerably rely on consensus.
In the Netherlands, success is measured by the achievement, merit, and competence. Even though managers are decisive and dynamic, a consensus is compulsory since various players must be consulted before making any decision.
Traditional Indian companies practice nepotism. For example, members of the family hold critical positions excluding other people who may have the required skills and talent. Besides, policies get dictated by trade organizations such as jewelers, fruit merchants among others. These groups work in close unison and support one another during stressful moments.
China managers value consensus. The state-controlled companies allow leadership groups to formulate policies, while capitalist-style corporations select leaders with the necessary competence and reputation.