Is a happy tenant more important or is a happy landlord more important?

Well, your answer probably depends on whether you rent your home or own your home. But, most would agree that a great tenant-landlord relationship is mutually beneficial while a bad one could mean hell.

Although I do not yet own my own home, I do play a small managerial role when it comes to dealing with the tenants in my parents’ house. Having been on both sides of the spectrum, I can say that it isn’t easy for either side.

As I currently play a partial landlord role, the responsibility of dealing with less-than-perfect tenants becomes an occasional inconvenience. That’s why landlords appreciate the tenant who gives them no trouble – what seems to be one of the rarest type of people around. It’s difficult to understand how much of a hassle it can be until one is put in this position.

What Makes the Landlord Smile

Landlords just want to collect your rent with as little trouble and frustration as possible. Yes, it feels like there are just way too many rules. But, you are living on someone else’s property, which will have rules in place to protect it. These are the things you should be doing no matter where you are living.

• Pay your rent on time. Money is #1 here. This is the only reason any property owner would rent out their home. Landlords have the right to impose a late fee!
• Keep a low noise level. Not only does noise bother everyone else in the building, it could keep the neighbors up as well. I don’t want to have to wake up at 2AM to tell you to be quiet as much as you don’t want to see me ruin your party.
• Keep it tidy. Nobody wants to come home to mold-riddled walls, roach-infested cabinets, and a scummy bathroom. Unsanitary conditions can spread and affect the health of everyone in the building.
• Don’t break anything that isn’t yours. As a tenant, it is your responsibility to take care of anything that was there when you moved in. Sure, the security deposit might cover some of the costs of the damage but landlords don’t want to deal with it if they don’t have to.
• Proper garbage disposal. Recycle. Put the right type of garbage in the right garbage container. No spills please!
• Good communication. The landlord may not know everything that is going on so it is up to you to let them know if you have questions or concerns. It’s nice to know that tenants are looking out for the residence as much as the landlords do.

Landlords Aren’t All Mean

It is also of great interest for tenants to make their landlords happy because some landlords are very nice people. If you are a great tenant, they are more inclined to be a great landlord as well and return the favor. In the long run, it could save money and a bunch of heartache.

• Wards off rent increases. Something that many tenants dread is the annual rent increase. How much the landlord likes you can drastically affect the decision of a rent increase. The more you piss off a landlord, the higher your rent increase. If you were an excellent tenant, I would consider not raising you rent at all.
• Quicker fixes to problems. You pay to live in place with acceptable living conditions. It is the landlord’s legal duty to maintain a habitable environment. Some landlords are quick to repair problems with the rental property and some just don’t give a crap. Establish that guilty conscience in a landlord if they don’t fix your problems immediately because you are such an awesome tenant.
• Perks here and there. Sometimes, you might need little favors from the landlord. If you are not home to receive a package, ask the landlord. If you are going on vacation and need someone to check up on pets and belongings, ask the landlord.

The Best Tenants We’ve Had Yet

Two female NYU college students occupied an apartment on the second floor. They were nice, soft-spoken ladies who took care of their living areas. They were quiet and, even with a few guests over, they kept the noise down. And, most importantly of all, they were never late with the rent payments.

My parents never raised their rent. During the summer, they happened to not have an air conditioner. We just so happened to have an extra one so we lent it to them and helped them set it up. From time to time, my mom would offer them some home-cooked Chinese food. One of the tenants worked at a frozen yogurt shop and would bring back some for us.

Sadly, they left after graduation…

To other landlords out there: share some stories of your superb tenants. As a landlord what makes you smile? Renters, how’s your relationship with your landlords?

(Photo credit: ellie)

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This guest post was provided by Kyle Chezum, a content specialist at Lender411 – a firm that helps homebuyers compare mortgage rates, find local lenders, and locate the best mortgage packages available.

I’m 22 years old – and I’m buying a house. This may come as a surprising feat to some of you. According to a study released by the National Association of Home Builders, the average first-time home buyer is roughly 33 years old. When I buy my house, I will be the exception in that study.

The “Debt-bed”
As part of a company that specializes in matching homebuyers with mortgages, I see deals made around me every day. We’re able to do a stellar job pairing borrowers with lenders but I find myself concernedly hoping that I don’t spend the next 30 to 40 years of my life burdened with a mortgage.

Debt isn’t just a financial impediment – it carries a strong psychological aspect as well. It can brood over you and contribute to your fears of what lies in the future. It can kill passion and excitement.

• If you’re stuck in debt, you’re stuck in a job – you have to keep making those payments every month.
• If you’re stuck in a job, you’re most likely stuck wherever you live – you can’t quite and move across the nation, or relocate to Europe, or drop everything to make a wild attempt at becoming a rockstar.
• If you’re stuck wherever you live, that’s where you’ll wither away. Simple as that.

I know this sounds morbid, but in my opinion, this is what the future looks like under the shadow of debt. “Opinion” is the operative word here. Some people don’t mind debt. Most of the clients we work with each day do not mind it too much, or they wouldn’t be working with us. That’s fine. But I guess I’m kind of a rebel.

A Rigorous Plan
I’m buying a house. But not with a mortgage – not if I can help it. My goal is set on making a 75% down payment on the day that I purchase my home. Sounds impossible?

Here’s how I plan to save for this down payment:

1. I went to my bank a while back and set up a dedicated savings account. I told myself that as soon as any money entered that account, it was never coming back out. This savings account is my house fund.
2. I get two paychecks each month. Of those, the first goes immediately into my savings account. The second is used to pay for rent, utilities, and other significant bills.
3. I start each month with $100 in my checking account – no more than that. I make this $100 last all month. It covers groceries, gas, and other daily expenses.

And that’s it. It works for me. But, everyone has a different situation. I don’t seriously believe that the $100-per-month plan will work for everyone, though if you want to try it, go ahead – I think you’ll be astonished to find what you consider to be necessities.

The following tips are more broadly applicable:

• Budget. If you don’t have a budget, make one. There are a number of simple tools online that allow you to do this. One of the best is Mint.com. Take a few months and just keep track of your expenses – nothing more. See where your money goes. There are probably a few things you can cut out.
• Don’t use credit as income. Avoid credit cards, payday advances, auto loans, and any other short-term debt, if you can. It will always cost you more to use a credit card than it will to use cash. Avoid other extraneous debt.
• Drive a clunker. Forget about buying a brand new car. Get something older, something that runs well but doesn’t have the high price tag associated with that “new car smell”. A mid-90s Toyota sedan, for example, still has tens years of life in it and, depending on the exact car, will only run you a few thousand dollars.
• Don’t do the “luxury vacation” thing. Please don’t. Don’t go on a cruise or on a week-long adventure in Costa Rica. These kinds of trips are beyond expensive. Go on vacation every year when your home is paid off and you’re living debt free. Skip it for now, and those day will be here that much sooner.
• Start saving right now. This is the most important part. You’ll never be ready to save money – just do it.

Say It, Do It
Ultimately, your financial goals and life dreams will serve as driving propellants. Again, if you don’t mind debt, that’s fine. In order to be more financially effective in life, some of you will leverage your assets to some extent. I get that.

What bothers me most, though, is the psychological side. I don’t like debt. Plain and simple. Every month, when I deposit that paycheck into my savings, I tell myself, “I’m buying a house”. Because that’s what I’m doing.

I’m buying a house. Right here, right now – bit by bit. It’s a philosophy, in a way. A constant lifestyle. Movie tickets, dinners out and weekends at Disney World fade into the background. These things aren’t important yet. For now, I’ll work on buying that house.

Simon’s Note: Kyle’s plan is one of apparent extremes. I understand the reluctance to take on debt since interest charges are quite scary. He is doing what he feels is the correct path for him. What he can do may seem impossible to replicate but it isn’t to say that it is unachievable. This is one way to approach a goal. To each their own.

(Photo credit: bendeming)

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Soon, the tenants in one of the apartments in our house will be leaving and I’ll be given the responsibility of helping my parents find new tenants again. After seeing how my father often goes about getting new tenants, I told him that there is a better way of doing it. His typical process is just:

1. Post an advertisement in the Chinese newspaper.
2. Shows the apartment and explains the rules of the house.
3. Accept the first person who agrees with the rules and puts down a deposit.

As many homeowners of rental properties would agree, this is a very poor method of searching for tenants. The most important thing of renting out property is to protect oneself, legally. That’s why the hunt for new tenants should mimic the procedures of hiring a new employee for a business.

1. Application Process

Just like filling in a job application, potential tenants should be given a rental application to fill out. It is not considered inappropriate to ask for a resume, references, W-9 or 1099 forms, and references. Here, we are not reviewing the person’s education and ability to perform certain task but instead, we are reviewing the person’s credibility and ability to pay the rent.

2. Interview

The interview is the key step in hiring an employee and it is also the key step when taking in a new tenant. My parents often like to meet the potential tenants just to get to know their personality and character. Someone can put anything down on a piece of paper so the interview will finalize their decision.

3. Hired!

Before officially starting work, an employee would have to sign plenty of documents to make everything official. I have proposed to my parents that I write up some things on paper, such as terms of the lease and rules of the house, and have the tenants sign it. They normally do not do this because of their limited ability to communicate in English. I’ve even thought of making a mini handbook so that tenants know things such as how to contact us, recycling information, and the rules.

Taking Charge

A detailed process, once again, serves the purpose of protect oneself. Just in the case that there would be any problems with the tenant, we can say that we told you so. Because of the close resemblance that this process has with owning a business, I’ve asked to take over this entire ordeal and have my parents conduct the interview (along with making the final decision).

Photo credit: cincyproject

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