If you’re ready to make the leap into real estate investing and become a landlord, consider living on-site. There are many benefits to living on the property that you own, including the fact that it can save money and help you form a good relationship with your tenants. Living on-site also allows you to stay on top of any maintenance issues and problems your tenants might be having.
Table of Contents - Ready to Become a Landlord? Living On-Site Is the Way to Go
The best thing about living on-site is that you’ll be able to fully immerse yourself in your real estate investment. You’ll quickly develop the skills needed to be a good landlord after getting constant face-to-face time with your tenants and workers.
All that said, there are some disadvantages to living on-site as well. Learn all you can about the pros and cons of living on-site and decide if it can work for you.
Living on-site saves money
One reason many landlords decide to live on-site is that it helps save money. When living on-site you won’t have to worry about paying a monthly rent or mortgage on another piece of property. The only costs you’ll have to worry about will be the ones to your investment property. Living on-site also saves you from paying any commuting expenses, like gas money or taxi fees.
Buying and maintaining a real estate investment costs a lot of money, so you’ll want to save some whenever you can. Those just starting out will especially want to save plenty of cash.
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Maintenance problems will be taken care of quickly
A lot of hard work goes into maintaining a real estate investment property. If there’s a problem with your building in the middle of the night, you don’t want the added annoyance of having to drive a long distance to get there. You’ll also have to drive all the way back home and try to get some sleep before the next morning after said the problem had been taken care of. It’ll be much easier to take care of these issues when you live on-site.
Potential problems with your building, like water leaks, should be taken care of right away to avoid expensive repairs. When you live off-site, some of these issues could go unnoticed for an entire weekend or longer. You could be saving yourself from a big headache by living on-site and taking care of certain maintenance issues as soon as possible.
Showing the property will be easier
Living on-site will give you a vast knowledge of the property. You’ll know how to find all the rooms and the best ways of travelling from point A to point B. This knowledge will help you immensely when it’s time to show the property to potential tenants. Most tenants want to know everything they can about a property before committing to a rental. You could also ask what the potential tenants are looking for in a property and recommend a room that fits all their needs.
Having this knowledge of the property also helps when it’s time to do routine maintenance or have any repairs done.
You’ll form a better relationship with tenants
It’s usually best to have your current tenants renew their lease after each term. Current tenants are aware of all the property’s rules, which is sometimes a problem with new tenants. You’ll especially want to keep tenants that follow the rules and always pay their rent on time. Forming a good relationship with your tenants could be what convinces them to stay in the future.
It’s much easier to form a good relationship with your tenants when you’re seeing them almost every day. You’ll likely see your tenants every time they pay rent or put in a maintenance request. Being able to put a face or voice to their landlord helps some tenants feel more comfortable. Some tenants also like to know that their landlord is nearby to take care of any issues.
Some disadvantages of living on-site
While the advantages to living on-site usually outweigh the disadvantages, it’s important to know about both. One big disadvantage is that tenants will always know you’re nearby to take care of any issues. This is a good thing in most cases…but some tenants might take advantage of the situation and call you for every little thing. After a full day of work, you probably won’t be in the mood to take care of a small squabble between neighbours.
There are ways to remedy these situations, however. You could send out a message saying that tenants shouldn’t contact you after a certain time. Instead, set up a 24-hour maintenance line that tenants can call in case of emergencies. This will allow you to relax after hours and give your tenants a way to have most of their issues taken care of.
Being a good landlord
No matter if you live on-site or off-site, there are several things you can do to ensure that your tenants are happy. It’s always a good idea to give your tenants a warm welcome, for example. This could be done by sending them a welcome letter or offering them coupons for nearby businesses. Let them know that you’re available when they are having issues with their apartment. It’s also good to respond to any tenant complaints and concerns as soon as possible.
While you want your tenants to like you, it’s just as important that you’re firm. Be sure to have a consequence for tenants that don’t pay on time, which could include extra fees for every day that the payment is late. If a tenant is playing music loudly or hosting frequent parties, don’t avoid sending them an email to address the situation. Loud noises could upset other tenants, making them decide to not renew their lease.
Living on-site is the best way of being a good landlord. You’ll quickly gain valuable knowledge about your property and will have plenty of face-to-face time with tenants. The knowledge you gain from being an on-site landlord will also help you in all your future investments.
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