Are you guilty of being friends with your tenants? As a landlord, you are running a business and if you want to succeed in it, you will need to handle it as one. Although it is important to maintain a healthy professional relationship with your tenants as with any other business, being over friendly however, can be quite unprofessional.
Let’s look at the good and bad points of being too friendly with your tenants:
- Your renters may tend to get too at ease with you and feel obliged to ask for favors.
- It’s not hard to get worked up emotionally during disagreements and disputes instead of being strictly business.
- It will be difficult to evict them without the drama.
- You tend to act more leniently which you may not necessarily be on other tenants under the same circumstances.
- You can trust your tenants to look after your property and pay their rent on time
- The better your relationship with tenants, the more likely they are to stay.
- Being friends with your tenants create a smoother communication and will make your net operating income higher without the turn-over.
It is important to be open and friendly with your tenants but there’s a fine line to be drawn between business and friendship. The best situations are where you as a landlord and your tenant respect each other and have good rapport.
You can be friendly but never friends. Know your boundaries. A little social distance will allow you to make wise decisions with your investment. Strike the balance between being personable while still enforcing the law. That way, if issues arise, they can be addressed relatively objectively and in a straightforward fashion.