ABC Class Landlords
What Type of Landlord Are You?
Personality assessments are all the rage right now, so we’ve joined in the fun!
Did you know that there are 3 types of landlords? These are the unofficial, and often unspoken, classifications used in the property management industry to better understand the reasoning behind the diverse approaches landlords take with their investment properties.
Which one resonates with you?
For fun, we’ve started each description with a shooting sports analogy.
Class "A" Landlord:
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Class "A" Landlord:- In any competition, these landlords come prepared to Win, with quality equipment, and a professional coach by their side.
- They recognize the value property managers bring to the table and happily pay for their services.
- Appreciating the systems, tools, and buffer property managers provide between them and tenants, they acknowledge the complexities property managers face.
- They grant the flexibility to make critical decisions, even if it means exceeding spending limits on occasion.
- Quick to respond and easily reachable, they understand the value of leveraging their most valuable resource, their time.
- They respect the property manager’s expertise and experience, and will adjust lease pricing as needed.
- They have prepared for emergencies with both insurance and funds set aside, and don’t stress when one occurs.
- When an issue arises, they address it promptly and professionally with the property manager, and as a result, it gets resolved quickly.
- They are in it for the appreciation and tax breaks, and often have a plan in place to add to their property portfolio.
Class "B" Landlord:
Class "B" Landlord:- These landlords show up at the competition with some equipment they’ve used a few times, perhaps found on sale recently. They’ve put in a little effort to practice, and yet are hoping to win big in their new hobby. After a few fumbles, they’ll look around a bit for a coach, then hire the cheapest one they’ve run across.
- Often these folks weren’t even sure they wanted to compete, but found themselves on the field, and are trying to figure it out as they go along.
- They question and challenge every charge, and bemoan not having the money for unexpected repairs.
- They second-guess every decision, especially lease pricing, or insist that the property manager “just get it rented” to the next applicant, qualified or not. Does not understand that “no tenant is better than a bad tenant”.
- Wants two bids for every repair, wasting their manager’s time, and frustrating their tenants.
- They are often difficult to reach, making every repair take longer to resolve. In the meantime, some of the problems get worse, and cost more as a result.
- When they have an issue, they often put off addressing it, and just feel frustrated. As a result, issues remain unresolved, and may get worse till someone speaks up.
- These landlords may not last long, nor do many of them plan to, as they either move back in or sell in just a few years.
Class "C" Landlord:
Class "C" Landlord:- These competitors show up with the cheapest equipment they’ve found, often after a thorough search through the classifieds. They will only grudgingly hire a coach after several losses. They may even be under threat of being fined by the competition organizers for not following the rules.
- With a focus on the deal, these landlords will ask for a volume discount because their two properties make them a professional “investor”.
- They are demanding, pushy, require constant communication, and sometimes even verbally abusive to get their way. Or, they are too soft, and insist the manager give in on every issue a tenant may have, out of fear of losing a tenant.
- They go behind the property manager’s back, talking directly to the tenant, making the lines of communication unclear. They may either demand from, or promise things to the tenant, leaving the property manager scrambling.
- Want THREE bids for every repair, wasting the property manager’s time, frustrating the tenants, and damaging valuable vendor relationships. Or, they want to DIY the repairs, taking longer and disrupting the tenant’s lives more than necessary.
- They will not reduce the lease pricing, regardless of the market statistics, insisting that the manager “isn’t doing enough marketing”, and lose thousands while trying to save hundreds.
- They blame the property manager for uncontrollable issues, such as weather, market shifts, tenant job loss, etc.
- Want to sue everyone for everything that may go wrong.
- Leave negative reviews online when they have an issue, or threaten to do so in order to get their way.
- These landlords are often first-time investors, emotionally attached to “their home”, ordinary know-it-alls, or just plain slum-lords. They may or may not last as landlords, but will certainly have a stressful time of it if they do.
Reflect on which category best describes your approach to property management and consider how it aligns with your goals and expectations. Ask yourself – which type of Landlord are you?
Let’s talk about getting you to where you want to be!
