How a good landlord can ‘play hardball’ when it’s time to increase rent

“If they're actually being open and communicating with their tenant they advise them what the market's doing.

“They're letting them know that ‘maybe the market is $30 away from where we are but you guys have been great, so how about we agree to a $15 [to $20] increase and we re-sign a new term?’ ” he added.

However, this relationship may lead to a ‘delicate situation’ once the tenant becomes unable to comply with the increase.

“Little Johnny had problems in school” and “The car broke down” are some of the most common reasons that appeal to the landlord’s pity, and it may be hard to deal with the matter without seeming heartless and inconsiderate.

Managed’s Nic Bouris said that this is one a reliable and efficient financial team can come in handy. Property managers could act as intermediaries between tenants and landlords in order for them to maintain a good relationship without having to sacrifice the asset’s growth.

“[It’s important to have] someone in the middle as a broker so that you're not the guy [hearing the issues] directly coming from the person asking it.”

“Having someone in there that can point to themselves as an intermediary and say that they're only acting on behalf of someone else is important because then you can really step back and play hardball,” the property manager added.

While most reasons for not paying rent on time are less than adequate but reasonably founded, property investors should give themselves space to step back from all of that and just put their directive forward. An effective property manager makes it easier to deal with this type of situations because, after all, it’s their business to push for the continuous growth of the investment—a task that is undeniably hard but absolutely necessary.

That’s why, for many property investors, property managers and other professionals that make up their financial team are always a welcome addition to their journey.

Nick said: “We position ourselves where [we could] influence the growth of these assets. We are often the people who are right alongside you throughout that process of owning the investment property.”

“It is really a hard job to be a good property manager, therefore, it’s worth the weight in gold." 

 Tune in to Thom Richards and Nick Bouris’ episode on The Smart Property Investment Show to know more about the best tools, tactics, and tips to manage your properties and make the most out of your investment.