How Positive Thinking Can Help You Become a Successful LandlordApril 08, 2019
Psychology has become something of a trend in the property management realm. It isn't overhyped, though. Taking into consideration psychological factors in residential property management contributes to understanding the subtleties of landlord-tenant interactions. With that in mind, landlords can easily evaluate how a resident feels about their property and hence develop effective strategies for communication.
It isn't only the attitude towards your tenants that matters, but there are also several psychological nuances you should keep in mind:
"Fake it till you make it" principle
Researchers have found that faking success and confidence helps to enhance competence. Such a strategy allows you to "pretend" as though you've already caught a wave and create an optimistic mindset that will contribute both to your career goals and personal relationships. The "fake it till you make it" principle is a powerful way to improve a landlord's performance. Imagine that you've developed a successful property management business, even if it's just a start. Analyze how you feel about it and receive reassurance from within. That will automatically make your energy move in the right direction.
If you're focused more on financial growth, establishing an income-oriented mindset should be your main priority. Sure, it's not as easy as it may sound at first. But constant practice and persistent effort shouldn't be underrated. Whether you invest in real estate or rent out properties, the money-making process affects you to a certain extent. On a global scale, money changes people and affects their behavior, but it doesn't necessarily have to come with negative implications. Knowing your self-worth is what actually matters. If you run a successful business and are responsible for a huge amount of money, you will inevitably establish effective financial strategies and personal attitudes towards finances. And it's unimportant what anyone else thinks of your solutions.
Incorporate feedback loop
It's an open secret that professional competence is a must. But how do we keep increasing our competence? What if "faking" competence is no longer a solution? Here comes a feedback loop. From the property management perspective, it refers to the process of using tenant feedback to improve the service. For instance, your tenant has recently moved out and left a negative review or, even worse, posted an angry comment on your social media account. Instead of using caps lock when responding to negative comments, try to take advantage of the situation. So how do we know that something needs to be changed? We receive satisfactory or negative feedback, analyze what led to such an outcome, develop improvement plans, set deadlines we'll stick to, etc. Then the loop is repeated. It's a great way to improve performance in accordance with your tenants' needs and reach the best possible results.
Pay attention to tenant personality type
Understanding your tenants means a lot if you aim to build a profitable property management business. I'm not encouraging you to select tenants based primarily on their temperaments, but if you consider attracting long-term renters, pay more attention to the peculiarities of each personality type. The original classification divides all people into four personality types: sanguine, phlegmatic, choleric, melancholic. Should you look for long-term tenants that guarantee monthly rental income, choose melancholic. If you are more concerned about the cleanliness and tidiness of the property, consider a phlegmatic as your potential tenant. Searching for team members? An extroverted sanguine or an analytical choleric will make a great property manager. Understanding temperament types is a bonus to the tenant screening services such property management software systems like TenantCloud offer prior to signing residential lease agreements with your tenants.
High in extroversion
To develop a competitive business, landlords and property managers should stay focused on the outside world. The ability to easily connect with other people and get along with them helps to attract more prospective tenants and build a positive landlord-tenant relationship. And ultimately, extroverts get motivation by engaging with the external world. To earn the trust of your tenants, be more talkative and easygoing, as such personalities seem to be easier to deal with. No offense to introverts!
How does positive thinking help you succeed as a landlord? Share your thoughts and ideas by leaving comments below. :)