There are many rental property owners who consider themselves to be landlords. Other people own and rent out a home, but they don’t think of themselves as landlords because they’re not paying attention to the day-to-day details the way a landlord needs to.
When you buy or acquire a rental property that you’ll lease to tenants, you need to decide whether you’re going to be a hands-on landlord or a hands-off owner.
We’re exploring the difference in those two personalities.
Owner vs. Landlord: Mindset
Consider your mindset when it comes to owning and operating your property. If you are renting out a home in order to earn short-term rental income and long-term returns, you’re probably more interested in the investor mindset. You aren’t thinking too much about your property and the people living in it. However, if you’re a landlord, your mindset might be that this is still a home that belongs to you. It’s possible you’ll be too emotionally attached to the property. Maybe you grew up in that home or maybe you just really love it. You’re going to feel more involved in everything that happens there.
Scaling and Decision-Making: Owner vs. Landlord
An owner will think beyond a single rental property. Owners want to grow their investment portfolios and think about ways to earn more on their rental property. They’re more likely to outsource property management and maintenance activities, and they’ll want to make decisions based on what’s good for the bottom line. Owners will think of their rental property as a business.
Landlords tend not to think beyond their current property and their current tenants. Maybe they’re only interested in renting out a single home, or they don’t care so much about ROI as long as their tenants are paying rent and taking care of the home. They might run into problems when it comes to decision-making because they’ll make choices based on their emotions. They could try to do too much themselves, including maintenance and repairs, or they’ll hire inexperienced workers in an effort to save money.
Professional Arizona Property Management Solutions
Both owners and landlords can benefit from professional property management. Rental property owners who do not think of themselves as landlords are often very willing to hire professional property managers to keep their investments occupied, maintain the condition of the home, and provide other services like accounting and investment advice. Landlords, on the other hand, are often more interested in managing the property themselves.
If you think of yourself as an owner, we suggest you spend some time looking for the best possible property management company for your needs. If you think of yourself as a landlord, you can set up your own property management company and automate as much of the process as possible so you’re managing your home consistently and effectively. We recommend you hire good partners who can help with maintenance, insurance, legal issues, and accounting. Or, you can hire a full time property management company to help you switch your thinking to more of an investor or owner model.
Whether you think of yourself as an owner or a landlord, we’re here to provide you with resources and advice. Contact us at Rosenbaum Realty Group for more information.