Have you got that portion of landlords that will never spend money on repairs, always want above-market rates for rent and want a discount on fees? Over many years of working with and assisting offices to get better fees, and also from my own 15 years’ experience as a property manager, I have determined there are three key reasons why your landlords can be like this.
Reason 1- 'Culture'
We cannot argue the fact that culture shapes our thinking and who we are, and there are certain cultures in the world that place more importance on money (and the accumulation and keeping of it) than others.
Landlords that have been raised in and have had their thinking shaped by these cultures, will place more focus on money when it comes to rent, getting repairs done and other decisions that may involve getting more income/rent, and the spending of their money.
It pays to be aware of these factors and what cultures they are influenced by when dealing with landlords!
Reason 2 - Upbringing and values
Another reason (the first being culture) landlords can be focused on being 'money-tight' is simply because they were ‘brought up that way’.
You know, the 'turn the heater off and put on a jumper', and raised by parents who perhaps shopped the 'home brand' and 'no-frills' products, used shopping coupons a lot and were very tight on spending.
It pays to be aware of what makes people think a certain way!
Reason 3 - 'Coming into money'
The final reason landlords can be money tight is that once they used to be poor and have not much money, but now they are wealthy, can tend to result in not wanting to part with it!
Once they might have been studying at university, living on two-minute noodles and working nights at a cafe just to get by, or their parents were poor and so there was always a feeling of 'poverty' at home, but now they have come into money through being a doctor, lawyer or real estate developer or some other well paying profession.
This has resulted in them being tight with 'the purse strings' and watching spending very carefully, since their wealth accumulation gives them a sense of peace and security.
Again, it pays to be aware of the factors that make people think the way they do.
My final point is that in all cases it is likely this type of landlord’s personal self-worth is determined by how much money they have, and by how much they ‘don’t part with’.
It takes all kinds to make this world, and you have to determine whether this type of client is commercially viable or not.
But at the end of the day, you must make sure you make the right decision, and not unprofitable decisions for your real estate company. All the best!
Trainer – LPMA
Darren Hunter is a national and international property management trainer, speaker, consultant and authority on property management fees, and income maximisation strategies all designed to grow your rent roll profit, without extra rent roll growth required.
A consultant and trainer now for over seven years, Darren has previously worked as the state property manager with one of Australia’s most respected real estate brands recruiting, training, implementing policies and procedures and managing 28 property managers in 18 regional offices over South Australia and the Northern Territory. Darren has presented for the Real Estate Institutes in WA, SA, NT and TAS and has presented at the Leading Property Managers of Australia Forums(LPMA) in 2007, 2008, 2009, 2010, 2011 and 2012