Five Ways to Avoid Being Called and Greedy and Selfish Landlord

Real Estate is a fantastic way to make money and build your personal wealth. It is also an easy way to find yourself being called greedy, lazy or unkind. Landlords often are quickly judged, and seen as the villain in any landlord tenant dispute. I just read an article from the Edmonton Journal, by Jamie Hall, Callous Landlords Face Record Fine of $70,000 (Tuesday, September 09, 2008).

From the article:

"In November 2005, Capital Health inspectors noted that work needed to be done to bring one building, which was constructed in 1969, up to public health standards. The railings on the balconies in the front suites of both buildings were too low, and gaps between the spindles were too wide, posing hazards. Inspectors found similar problems with two interior staircases and discovered a bedbug infestation in one suite in the building at 13117 83rd St. In the same building they saw what appeared to be significant deterioration of the concrete balconies. The were advised to fix the deficiencies and hire a structural engineer to examine the stability of the balconies. Over the ensuing months, inspectors returned to the buildings several times, noting each time that none of the work had been done."

It sure sounds bad, but I wonder what the real story is. I know how one sided the news can be. And, I know how easy it is to find yourself in court with fines as beginner landlord. It happened to my husband and I early on in our real estate investing career. And to us, it happened so swiftly, and we never saw it coming.

If you are a landlord, or think you want to be one, and these stories have you shaking in your boots - take heart, there are lots of things you can do to avoid fines and court appearances as a landlord. Here are 5 ways you can reduce the risk of finding yourself faced with work orders, court fines and unhappy tenants:

1. Hire competent and quality property managers,

2. Address tenant complaints quickly, even if it is just an explanation as to why work will not be done right now. Make sure tenants understand what you will do and what you won't do, and why,

3. Ensure your property is ALWAYS up to the latest codes,

4. Keep your neighbours happy. If your tenant isn't issuing a complaint that triggers an inspection, it will be an unhappy neighbour. Ensure your property is well maintained and your tenants are not too noisy or too intrusive on your neighbours, as much as you can,

5. Consistently do everything by the law. Act quickly, but make sure you take the steps and jump through the hoops required by the landlord tenant law in your area and keep a paper trail. If you ever do have to stand up in court and defend yourself a history of all of the above will be an enormous asset.

And don't worry! This story is an extreme one - and maybe these landlords really are greedy, selfish and lazy and are paying for it. But I know the fines we faced (which were MUCH smaller than in the above story) were preventable. We didn't address a tenant complaint, they were mad and called the City, and the next thing we knew we were slapped with a bunch of work orders we didn't get done quick enough to avoid court. It wasn't because we were greedy, selfish or lazy. It was because we were inexperienced and in over our heads on a property we never should have bought. Ahhh the real estate investing lessons we've learned!!