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Communication Lessons for the Landlord Tenant Relationship

Steven Taylor Landlord Tenant Relationship

Whether you are renting out your home, running a small duplex, or are the landlord of a large multi-family investment, one thing remains the same – your property is your business. As with any business, your success is reliant on customers. In this case, your customers just happen to be tenants. If your tenants don’t feel respected, you may lose them, and when you lose tenants, your business can fail.

Communication, respect, and clear expectations can keep tenants happy and in place. This can save you from spending time and energy dealing with a high-rate of tenant turnover. Less turnover means more profits. As a landlord, it is essential that you take time to foster a relationship with tenants that is built on consideration and effective communication.

This clear communication and respect must carry through the entire timeline of the landlord tenant relationship, from application to move-out. It can be difficult to continue to function from this point of view during moments of frustration or conflict. It is vital to consider potential tenants ability to communicate in this way before move in. Will they show you the same respect in return? Adding this question to your mental checklist before accepting a new tenant will make your life as a landlord easier.

I believe that with strong communication and mutual respect, a landlord can choose tenants that will happily stay under their roof for long durations of time. These tips can help you develop healthy landlord tenant relationships and consequently improve your business.

Communicate with Transparency

A landlord tenant relationship must be built on transparency. Both parties must communicate honestly in order to avoid conflict and misunderstandings. You can not expect your tenants to meet your expectations if you have not first made them clear. On the other hand, tenants cannot expect you to take action if they do not make their needs known. Explain your expectations to your tenants from the beginning. Answer any of their questions up front to the best of your ability. By maintaining effective communication, you can properly handle problems as they arise, before they become a major conflict.

Hold up Your End of the Bargain

Regardless of the dynamic, relationships are built on trust. The landlord tenant relationship is no different. If you make a promise, keep your word. If you have a policy in place, follow through. You can’t always control the actions of your tenants, but you can control your own. Be available, be responsive, and communicate. If you expect your tenants to hold up their end of the deal, you must also hold up yours. When you follow through on your responsibilities, you set an example and a standard for your tenants. In moments of conflict, it can be hard to “be the bigger person” – as a landlord, it is your job.

Understand Boundaries

Checking on tenants can be part of a landlord’s responsibility. But while you may have valid reasons or good intentions, a surprise drop-in is not only rude, but often illegal. Most states have laws that require due notice before entering a unit. Regardless of the regulations, a landlord should understand basic boundaries. Many matters can be handled by phone or email instead of in person. While you want to have a strong landlord tenant relationship, it should always stay more professional than friendly. When it comes to boundaries, the same rule applies as in most relationships – when you respect them, they will respect you. – Steven Taylor

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What Makes Rental Properties a Good Investment

Rental Properties are good investments for landlords

If you’re looking at investment opportunities, you have a lot of options. You’re probably looking for an investment that will provide you with return as well as security. Real estate is one of the oldest and most popular classes of assets. Most people know that real estate can create passive income and be a great long-term investment when the value increases. But there are many other less commonly considered factors that make rental properties a solid investment.

1. You can shop around for a great deal.

If you’re similar to me, and love a good deal, you will likely enjoy property investing. As a buyer, you can shop around, you can haggle, and you can wait for the right moment to purchase below market value. Not only does finding a property that you can attain below value set you up for a good investment, it is also exciting. Getting a great deal can mean building wealth and building it quickly.

2.  You can purchase rental properties with leverage.

One bonus to buying a rental property is that you can borrow from the bank, or someone else, for the purchase. You therefore increase your potential for return. This principle is often referred to as leverage. Basically, even if you don’t have the entire purchase price for the property at your disposal, you may still be able to buy it. In comparison to stocks or other investments, you can purchase a larger investment for much less cash up front.

3. You can manage your rental property investment personally.

If you like to be in control and have a hands-on approach with your investments, you’ll enjoy running a rental property. As a property owner, you can be directly responsible for the success of your investment. If you are dedicated, and do your research properly, you can personally analyze before buying, ensure good renting conditions, and keep the place running efficiently. There will always be some risk, but unlike other investment types, you can manage everything hands on with less external conflicts and outside opinions. Unless you want those opinions – again, it’s your call.

4. It’s a business that isn’t going anywhere.

While the real estate market in general has its ups and downs, rental properties will always be in demand. People will always need to live somewhere, and there will always be individuals and families that choose to rent instead of own. As the economy changes and mortgages become increasingly difficult to qualify for, the demand for rentals will only increase., so being a landlord is something that will always be needed.

5. Knowledge is power.

In many industries “insider trading” or using secret information to know when to make a deal, is looked down upon or downright illegal. But when you invest in rental properties, you can leverage any insider information to your advantage, and not only is it legal, it’s considered strategy. Do your research, always pay attention to what’s happening in your region, and listen closely to the market. Is better transportation improving in an area? Is there a new school opening up? Businesses shutting down? In the rental property industry, you can take matters into your own hands. Not only can you buy at a good time, you can choose to exit in the face of a market decline – if you know early enough.

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What a First Time Landlord Needs to Know

What a First Time Landlord Needs to Know - Steven Taylor

Being a landlord can be a profitable and rewarding experience. As a landlord, you can build your wealth, utilize second properties you may already own, and run your own business. But, managing a property also requires extensive time and effort. Regardless if you are just leasing an extra property to a friend or family member, or running an entire apartment complex on your own, you need to be prepared. If you’re a first time landlord, take the time to thoroughly research the industry and you will be set up for success.

Here are five tips that first time landlords should keep in mind before renting out a property.

1. Examine your rental price range.

If you’re like most first time landlords, you’ve likely invested substantially into your property. You are also likely going to be dependent on the income the rent generates monthly in order to keep up with the mortgage. While your instinct may be to raise rents to increase your profits, you must first consider the rental market of your region. If you live in a popular area, you may be facing strong competition. As a first time landlord, you’ll want to ensure that your building is enticing to potential renters, while also keeping your expenses in mind.

2. Set clear expectations with tenants.

This may sound obvious, but you must make collecting rent on time a priority. Your property is your business, and without your primary source of revenue – rent – it will fail.  Be clear about your expectations when your tenants move in so there isn’t any confusion on policy. Let your residents know the rental due date, as well as how many days the grace period is for payments that are late. If rent is paid beyond the grace period, it is important to enforce penalty payments. Be sure to screen all potential tenants before they move in. By checking their rental history, asking for references from past landlords, and running their credit, you can help ensure that you rent your units to responsible residents.

3. Prepare yourself for vacancies.

If you have loss-of-income insurance, you may be protected from vacancies during a disaster or other external damage to your property.  But if you have vacant units simply due to low demand or high rents, you’ll be out of luck. Always have money saved that can be used to pay the mortgage on your property during times without tenants. If this is a frequent issue, it may be time to consider lowering the rent.

4. Become a master at record-keeping.

Owning a rental property can be helpful when tax season comes around. But to enjoy the tax benefits that come with being a landlord, you will need to have detailed expense records in order to defend your write-offs. These records will benefit you in other arenas as well – when you know where your money is going, you can accurately assess how your business is doing. Keeping detailed records of the conditions of your property, including damages, alterations, and other changing wear and tear, will help you in the long run. The key is to create good record-keeping systems, whether you track expenses and notes on your own, or use and online tracking program.

5. As a First Time Landlord, get help when you need it.

If you are overwhelmed by the work required to be a landlord, you may want to consider hiring a property manager. A property manager can take many responsibilities off your plate. Many first time landlords hire a property manager as they grow their portfolio and begin renting multiple properties. You should consider the cut to your profits, but also consider the time and energy you will save. If you can afford a property manager, you may be able to focus your time on other streams of income or expanding. – Steven Taylor, Landlord in Los Angeles

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Having a Work Life Balance Increases Productivity

Steven-Taylor-landlord-with-his-family-at-the-walk-to-end-alzheimers

Importance of Work-Life Balance

In modern western society, driven individuals wear productivity as a badge of honor. Have you ever caught yourself humbly bragging about how little you’ve slept, how many hours you’ve worked, or how packed your calendars is? As the value we put on performance continues to rise, employees are spending increasing amounts of time in the office. While you may think you are plunging toward your goals, studies show that overworked employees are less efficient. Longer working hours reflect increased stress levels and distractions. Neglecting to nurture a healthy work-life balance can actually be detrimental to your success.

Most of us equate ambition and hard work with productivity. Many entrepreneurs feel shame for taking time off to rest. But one of the key components to a productive mindset is allowing the body to refuel. You achieve more during work hours when you take effective time off to connect with family, relax the mind, and handle personal matters away from the office.

Stop Always Being Available

Somewhere along the line, entrepreneurs became associated with always being on the clock. This expectation that we must always be available is counteracting genuine productivity. It is necessary to explore methods and create schedules that allow us to have focused time during business hours, and truly disconnect from the job when we leave the office. As someone who runs your own business, it can feel impossible. But finding solutions that balance our lives at home and at work can pay back in dividends. 

“People who feel they have good work-life balance work 21% harder than those who don’t,” according to a survey from the Corporate Executive Board, representing 80% of Fortune 500 companies. So how do you create a schedule that increases your happiness, and therefore your productivity?

Clock Out When You Clock Out

Most of us no longer function on a typical 9-5 schedule. Nearly half of full-time American workers log more than 50 hours per week, and 20% work more than 60 hours, according to a Gallup poll. While you may not have an actual time clock, it is essential to set boundaries and specify working hours.

When we don’t create a separation between our working and personal lives, we multitask. When we multitask, our work is never truly getting our undivided attention, and our personal lives aren’t either. If you don’t give yourselves hours off the clock to handle personal matters, those tasks ultimately will need to be completed when you should be focused on work.

Create Space for Personal Matters

According to 2017 Office Pulse study, professionals are increasingly conducting personal activities at the office. “88% go online for personal needs, 78% go shopping, 72% run errands, and 57% of Americans use part of their workday to plan their next vacation.” Yet most of those people are still answering emails and taking work calls at home. Make a conscious effort to disconnect from work at a specific time of day. This will allow you to handle personal errands tasks, spend time with family, and maintain a social life, without hindering the productivity of your business.

If you’re like me, the amount of quality time I spend with my family is congruent to my happiness. Studies show that happier employees are more productive. If we want to live lives that are equally fulfilled as they are efficient, we must put as much focus on keeping personal and family time sacred as we put on achieving our next goal.

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3 Uncertain Conditions that Impact a Landlord and Apartment Building Investments

Landlord Steven Taylor, Taylor Equities Apartment Photo
Landlord Steven Taylor, Taylor Equities Apartment Photo

Multi-family properties can be a great investment. But, if you’re considering being a landlord and investing in an apartment building, it is essential to first evaluate the local market. Some influences are fixed, but multi-family real estate is affected by many changing circumstances. These factors can evolve over time. Responsible investors need to be aware of the changing conditions that can impact their properties. Before buying an apartment building, build and understanding of the uncertain factors that can affect your investments.

Shifting Demographics

A changing population can significantly affect your investment. If you are a landlord, depending on income from renters, an increase or decrease in a population can easily influence your success. Age, income level, race, and gender can all be relevant factors to the profit of your investment. If an area is growing, the demand will grow as well and you are likely to see higher occupancy rates. If a circumstance or trend causes the population to migrate away from your building’s area, your property could sit vacantly. It is notably important to consider the factors that affect an area’s demographics before investing in a property.

Fluctuating Job Markets

The economic conditions of an area play a large role in decision making for multifamily investing. The health of the economy in an area will impact the demand for rental properties. If new jobs are created in a region, people will consequentially move to the area to fill those positions. Many new employees would often rather rent from a convenient and local multi-family property than buy their own home and commute to work.

A downturn in the economy can also affect a landlord’s apartment housing investment. When unemployment rises, homeowners often look for more affordable places to live, and many switch to renting an apartment. When the job market fluctuates, your investment could as well.

Landlord Changes in Access

It may seem obvious, but it is essential to pay close attention to the geographic location of your investment. In an era of climate change, our world is ever-changing, and the physical location is playing a more significant role than ever in housing choices. Renters want to live in a location with good weather, safe conditions, and access to the things they need. Before becoming a landlord and investing, look at the history of properties in the area. Have they been affected by any natural disasters? Do they experience an influx of population during certain seasons? Is the area becoming more or less convenient? Locations all have their strengths and weaknesses that will affect your real estate investment. Don’t skimp on the research. When purchasing a multi-family building, consider all the factors to make sure you are in the right place.

Steven Taylor, Taylor Equities properties

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What Coaching My Kids in Sports has Taught me About Life and Business

Steven-Taylor-of-Taylor-Equities-in-LA-taking-time-out-for-charity-with-his-family
Steven-Taylor-of-Taylor-Equities-in-LA-taking-time-out-for-charity-with-his-family

As an entrepreneur, I experience many different team dynamics, leadership styles, and collaborative processes. I consider myself a life-long learner, and am always looking for opportunities to grow my management skills. Coaching my kid’s sports teams has not only helped me stay connected to my children, but has also taught me lessons about life and business. Not only have I found many parallels between these two parts of my world, but I have learned lessons from my kid’s sports teams that have helped me in my business.  Coaching children is a rewarding experience that can teach leaders about respect, expectations, support, and teamwork.

Here are 3 lessons about business I learned from coaching my kids.

1.    A well-rounded team is key.

In sports, no athlete, even the best ones, have all areas covered. Child athletes all have their strengths and weaknesses, and as a coach you must utilize all the teammates to fill in the gaps. Star players couldn’t be stars without the support of their team. It is essential to recognize the areas where players need assistance, and build a team that is well-rounded.

In business, a balanced team is equally vital. Even the most successful entrepreneurs need other talent to fill in the gaps with special skill sets. It is essential that leaders recognize the areas in which they need to let others take the spotlight. Companies driven by teams with widely varied skill sets work together brilliantly. It can be difficult for leaders to admit they need help, but a group of people working together toward a common goal is always stronger than a lone individual.

2. The process is the experience, not the win.

Kids often think that the team’s success is measured by their most recent win or loss. Teaching them otherwise has been a great reminder in my own work. Winning or losing is just a bi-product to the experience. When the players put in solid work, play well together, and give their best effort, ground is gained. Losing, but knowing that you played above your previous abilities, can be a win on its own. Often, teams are built not during the winning games, but the losing ones. These games can serve as a reminder of the areas you need to strengthen.

In the business world, of course we want to win. But coaching has been a solid reminder that it’s the journey that builds your team. Your business should have the ability to adapt as the circumstances or environment change. If you’re always winning, you won’t gain as much long term value. Focus on the process, and the wins will come.

3. Focus on fundamentals.

As a coach, I first have to focus on basics. To build skills, we must repeat them until they are part of our muscle memory. Even the most talented kids need to go back to the fundamentals regularly to keep them sharp. Regardless of the skill level, we take the time to practice from the ground up.

As a leader, it is your responsibility to check in with your team and make sure the fundamentals are in place. When working at a high level, it is easy to get caught up in the details and forget to focus on the main goal. Growing the fundamentals a business on a strong foundation. A strong foundation, means a solid team.

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How to Balance Business and Family Time as an Entrepreneur

LA Landlord Steven Taylor enjoying quality time with his family

As an entrepreneur, your business is your livelihood, and all responsibility ultimately falls on you. Entrepreneurs like Steven Taylor, share a lot of qualities, but the traits that stand above them all are drive and work ethic. When you’re your own boss, or landlord, there is no clear clock out time at 5 pm. When there is a crisis, or a deal on the line, any time can become work-mode. As a result, finding a work-life balance can be challenging for many business owners.

This dynamic is even more challenging for entrepreneurs who are married or have a family. I love my work, but my family always comes first. Finding a way to balance both and prioritize each of them at the right moment is a practice that takes time. It is important to create the space to have quality time with family, while running a business, and also taking care of your mental, physical, and emotional well-being. To successfully handle all of these aspects of life, you may need to adjust your daily routine and habits.

Here are 3 tips for balancing business and family as an entrepreneur:

1. Wake up early.

Get up early. I suggest getting up and starting your day before anyone else is awake. This will give you time for a morning routine, and let you set your intentions and priorities for the day. Beginning the day with exercise, journaling, praying or meditation, and any other activities that contribute to you mental well-being will get you in a healthy mindset. This mindset will prepare you to divide or focus your attention throughout the day when needed.

2. Family time doesn’t get rescheduled.

Whether it is a family dinner, weekend hike, or evening bedtime stories, it is essential to set routine family time that is a part of your schedule. It is important to me that I spend the weekends being active with my wife and kids so that I can stay closely connected to them, no matter how busy I get. That time is in the calendar, and it does not get cancelled or rescheduled.

It is equally important to be present during these times. It’s one thing to be physically with your family, but remind yourself to really be in the moment, and listen. When your business is growing and you are under a lot of pressure, it can be difficult not to let your mind wander towards work mode. Accept the challenge to give your family your undivided attention when you make the choice to spend your time with them.

3. Delegate.

Founders often struggle to develop a balance between business and family because they are either afraid or too stubborn to give up control of their business.

To truly be able to give your family your undivided attention when you switch into “home-mode” you’ll need to let others take on some responsibility. While you should certainly be selective of who you work with, don’t let the fear of passing off tasks to someone else hold you back from living your life. You ultimately need to be able to teach someone else to handle part of the workload to run a scalable business. Otherwise, you’ll be struggling to find balance for the rest of your life.

Wise entrepreneurs are always looking for opportunities to delegate to those around them so that they can focus on the bigger picture – in their business, and in their family life.

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4 Factors to Keep in Mind When Investing in Apartment Complexes

Apartment Steven Taylor Taylor Equities
Apartment Steven Taylor Taylor Equities

When considering investing in anything, according to Steven Taylor of Taylor Equities , the question you should always ask is: Why is this a good deal? A good deal isn’t just about numbers – a good deal has a compelling story and makes sense. Is the property mismanaged? Stressed? Under foreclosure? The facts should tell a story that explains why the property has value. Developing the instinct to recognize a good deal takes time, but with research, study, and experience you can learn to find the right investments.

Here are four factors to keep in mind when investing in apartment complexes.

1. Cash Flow

The probability of cash flow is a crucial factor to consider. It is important to evaluate how the property will generate cash flow in comparison to other potential properties. To start, ask yourself these questions:

  • What is the strength of the rental market in the area?
  • What type of market you are buying into (For example, C class buildings often have higher rates of tenant turnover. They can also call for more maintenance and repairs.)
  • Financing (How much money are you putting down? What is the interest rate? What type of loan?)

2. Equity

The next thing to consider is if the apartment complex you are purchasing holds equity. If the property doesn’t have equity, can you create it?  Equity in a property can take many forms. A few to look for are:

  • Discounted listing price
  • Foreclosure
  • Upside potential (Fixer-upper)
  • Poor management
  • Opportunity for rezoning

While there are ways to create equity, you are better off buying into it. Be on the lookout for motivated sellers who want out of their property – they are often willing to give up the building’s equity for less.

3. Appreciation

Purchasing in the right location and during the right time will result in profit and appreciation. But, evaluating timing can be tricky. The real estate cycle is often very uncertain. Therefore, if you purchase an apartment complex without the certainty of cash flow or equity, with the goal of short-term appreciation, you will be taking on a risky investment.

Often, aiming for moderate or long-term appreciation will be a safer bet. Study neighborhood and city trends over the long term to choose areas that hold their value and grow at a steady rate.

4. Risk

Those investing in apartment complexes often neglect to consider risk. Regardless of the amount of research you do, risk will always be a factor. Even if you have considered all the factors, you presumptions can be incorrect.

Have a backup plan for risk. If you are buying a building for appreciation, and the apartment complex does not appreciate, can you instead gain positive cash flow through renting units? If you have vacancies in some of your units, will you be able to balance the negative cash flow?  When investing in apartment complexes, you should expect a positive outcome, but always be prepared for your plan to take a turn. Real estate investment in a risky business, and if you want to play the game, you have to be ready to pivot when things go wrong. But, when things go right, investing in apartment complexes can be an exciting and rewarding endeavor. Steven Taylor Taylor Equities