Striking the balance between profitability with social responsibility can be a delicate dance. Naturally, you’ll want to make a profit from your properties in order to sustain your rental business and build your investment portfolio. However, you can’t forget that you also have a responsibility to your tenants (e.g. to provide them with a habitable home, fair opportunities to rent, etc.) and a duty to contribute positively to the community in which your property is situated, and to the environment as a whole.
It may be a delicate dance, but it isn’t impossible. You can continue making money while committing to your moral obligations by practicing many strategies, such as staying on top of maintenance and property improvements, taking tenant concerns seriously, embracing sustainability, and more.
Wondering how to manage multiple properties while contributing to the greater good? This article will examine the best practices that will allow you to balance profitability with social responsibility as a multi-property owner. This way, you can create a sustainable and socially responsible property management strategy that benefits yourself, your tenants, and your community.
What is social responsibility?
Social responsibility is a term often used in the business world, but what does it mean in terms of multi-property management? Social responsibility, in its most basic sense, is all about doing the right thing while doing business. It means taking actions that contribute to the greater good, rather than solely pursuing profit or self-interest. This means understanding how your actions (including your policies and procedures) affect your tenants, and how your decisions impact the local community and environment, all while making sure to turn a profit.
How to manage multiple properties while practicing social responsibility
Here’s how to manage multiple properties and make money while being socially responsible:
Support the community
Participating in activities in the area where your rental property is located will allow you to build good relations with the community and give back. For example, if you own a rental property in a small town, you could participate in a local charity event or donate to the local food bank. Or, if you have the budget, why not invest in developments, such as contributing to the construction of a community center or school?
Invest in energy-efficient upgrades
Social responsibility and sustainability come hand-in-hand. This is because following eco-friendly practices allows you to do good by nature. As a landlord, you can reduce your carbon footprint by implementing “green” property improvements such as energy-efficient appliances. You could also use sustainable materials such as blended cement, recycled metal, and precast concrete slabs to build or repair your property.
Screen tenants equally
Tenants must be screened based on objective criteria, not on discriminatory factors such as their race, gender, or religion. All tenants must submit the same requirements, and be asked the same set of questions—this means you can’t make exceptions for anyone.
By ensuring that all tenants are screened in the same way, you can promote equality, provide them with an equal opportunity to rent your property, and ultimately, be more socially responsible.
Comply with state and local laws
Abiding by the law is a critical component of being a socially responsible landlord. It shows that you’re committed to providing your tenants with a safe, comfortable, and habitable home while protecting their rights. A good example of this is making “reasonable accommodations” or “reasonable modifications” for tenants with disabilities. By doing so, you can create a positive rental community that benefits your tenants’ well-being and guards you against liability.
Set a fair rental rate
When it comes to managing multiple properties, it’s important to determine a rental rate that’s both affordable for tenants and can also provide you with a reasonable return on your investment. The ideal rental rate shouldn’t be a burden on your tenants and should promote equality, especially in areas with skyrocketing housing costs and the risk of being homeless is high.
Pro Tip: If you are a landlord in South Florida, working with a professional property management company can be the best decision you’ll ever make. They have a deep understanding of the local rental landscape and can provide up-to-date insights into rental rates in your area. With their expertise, they can help you crunch the numbers and come up with a rental rate that’s both competitive and reasonable.
How does being socially responsible benefit you?
Being a socially responsible landlord is not only the right thing to do, but it can also benefit you in more ways than one. Here’s how:
Build a good reputation
By providing your tenants with a safe, comfortable, and habitable home, and dealing with tenant concerns without delay, you can improve tenant satisfaction and in turn, retention. This can lead to positive word-of-mouth referrals and boost your reputation in the rental world.
Maintenance allows you to prevent costly repairs, while promoting sustainability can lower your bills, benefiting both you and your tenants. For example, installing low-flow fixtures—a simple way to be more sustainable—can drastically reduce your water bills.
Be legally compliant
When you’re socially responsible, you can steer clear of legal trouble, such as violating landlord-tenant laws like the Fair Housing Act (FHA), Consumer Protection Law, and other local codes.
Increase property value
When you invest in property improvements to make your tenant’s home more habitable, you’ll be able to boost your property’s value. And when your property’s value is high, that means you may be able to set a higher rental rate!
At Luxury Property Care, we’re committed to being socially responsible
Don’t worry if you haven’t infused social responsibility into your practices—it’s not too late. At Luxury Property Care, we believe social responsibility is at the core of property management. When you work with us, we’ll design a strategy that will allow you to do just that while enjoying the rewards of your investment. If you’re wondering how to manage multiple properties and profit while being socially responsible, be sure to contact (561) 944 – 2992 or complete our contact form for more information.