| Top 8 things to avoid in the Real Estate Agent you choose to list your home |
Good tenants are easy to ignore until they tell you they are moving out. Why are
they leaving? Well, it might be because you ignored them. And when tenants plan to
move, it's very, very difficult to get them to change their minds.
The reason you may ignore good tenants is that you spend so much time working on your
not-so-good ones; cajoling them to clean up their acts or planning to evict them. When
you are always on the phone with Average or Bad tenants A, B, and C, you quickly start
thinking of Good tenant D as simply a check that comes in the mail, on time every
month, like clockwork.
But your good tenants are much more than that. They are human beings who:
- Understand that they are paying good money, and expect good service in return
- Notice when their building seems to be going downhill
- Recognize when they are being B.S.ed or treated disrespectfully or dismissively
On the other hand, YOU may not recognize these feelings in your good tenants, simply
because they may be reluctant to share them. The complaints are more likely to come
from your poorer tenants, and you may be more likely to dismiss them as a result. The
good tenants are more likely to suffer in silence, before deciding to move on.
It's vitally important that you retain your good tenants, not only because they make
your landlording more pleasant, but because they are so hard to replace. Once that
unit is vacant, you may not re-rent it for months, and you have no idea how the next
tenant will turn out. He could be just bad enough to make your life really difficult,
or so bad that he only lasts for a month or two before eviction.
Since your good tenants are less likely to contact you, you have to stay in touch with
them. Try to get a read on their feelings by calling or emailing at least once a
month. Here's a short checklist of questions:
- Does anything need repairs in the unit?
- Are you noticing any maintenance issues in common areas?
- Do you have any suggestions for me?
- How are your neighbors?
Not only have you learned how satisfied your good tenants feel, you've made them feel
important and wanted. Now you need to follow up by addressing their concerns, if any,
sincerely and quickly. Bear in mind as you do so that you can't get into trouble for
being nicer to your good tenants than your bad ones. If a good tenant's got a
maintenance issue, generally make it your first priority the only more important
issues will relate to safety or potential for very serious problems, such as fire or
water damage hazards. If a good tenant's got a beef with a neighbor, get all the
facts and deal with it right away making sure you get the neighbor's side of the
story before making a judgment. If a good and bad tenant are having a dispute, and
neither is clearly in the right, it's okay to side with the good tenant.
While you're at it, ask your good tenants if they're thinking about moving. Yes,
that's shockingly blunt. But it's the only way you'll ever find out if a tenant is
planning to move before he or she actually signs a lease for another unit. Once they
sign that lease, they're gone and no amount of cajoling is going to get them back.
If a tenant IS planning to move, ask why and press (nicely!) until you get an answer.
Hopefully their decision will be based on a problem you can fix. The unit feels kind
of old and grimy? Offer to repaint it. It's too hot in the summer? Get them an air
conditioner. It's too small? Maybe you have a larger unit vacant, even if it's in
another building and you'll help them move for free.
Some of these fixes run into some serious money. You need to compare them to the cost
of finding a new tenant. That is a certain amount of lost income, plus the cost of
marketing the unit, plus any necessary renovations to make it re-rentable. If the unit
needs paint anyway, then painting it to motivate a good tenant to stay is much better
than painting to get a new tenant. If the money looks REALLY serious, ask them to sign
a new lease. Point out that they would have to if they moved to a different building
anyway.
You should also make sure your tenant recognizes the cost and aggravation of moving.
They'll have to rent a truck, buy or steal boxes, pack everything, arrange for new
utilities, physically transport the stuff, and change addresses for all of their mail.
Why should they do all that when you can offer them what they want with much less
hassle?
On the other hand, they might be moving for reasons you can't control, maybe because
they're getting married or taking a new job in a different city or buying a house.
Thank the tenant for being a great tenant, and ask if they know anyone else who might
be interested in renting the unit.
You have to be committed to keeping your good tenants happy. That doesn't include
letting them break rules or pay rent late. Instead, look for little things you can do
to be helpful. For example, when tenants move out, they often leave behind one or two
objects of some value; bookshelves, portable fans, and so on. I offer these to my
remaining good tenants. I also send Christmas cards each year with a gift card to a
local coffee shop in each. It's definitely worth $5 to make a good tenant happy.
While you're at it, invest in a few emergency items you can have available for tenants
if they need them. Get a couple of electric space heaters (for use if the heating
system breaks) and big coolers (if there's a power failure). Now if you get a call
about a heating problem or power failure, you can offer some quick relief until the
issue is resolved.
Brendan O'Brien Contact email: info@pcpropertymaster.com
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