|A Recipe for Attracting and Keeping Good Tenants
1) CREATE AN EFFECTIVE AD CAMPAIGN
Right now there may be dozens of potential tenants out there who are looking for a place
like yours to rent. You can advertise in the newspaper, on billboards or on the Internet however,
you may be wasting your time and money advertising to people who either aren't interested in what you
have to offer or aren't qualified to meet your minimum tenant standards.
A good "ad campaign", on the other hand, lets you pinpoint and attract just
the kind of tenant you're looking for! In order to devise an ad to meet your needs, you must first
identify and understand your ideal tenant, and then strategize the best way to find them.
Step 1 - Identify and understand your ideal tenant.
An advertisement works best when it appeals to the type of tenant you are looking for.
So before you decide what information to highlight, consider for a moment the best tenants you've had
or could have. Think about what characteristics you value in an applicant.
Step 2 - Create effective advertising.
Once you've identified qualities of your best tenants, think about what they have in
common and what factors contributed to their tenancies being so successful. What did you have to
offer them? Assessing this information will help you decide how to target your rental ads. For
example, let's say you've determined that your ideal tenants have almost always had small children,
owned a small animal and worked in the nearby business district. A good strategy then would be to
advertise benefits that appeal to those types of applicants such as "Near Park", "Pets
OK" and "Close to Downtown".
Step 3 - Find "model" tenants.
Once you've identified some advertising strategies to attract your ideal tenant, you
will need to consider the best medium to reach them. One idea is to ask an ideal current or past
tenant to post an ad for you at their place of work or college bulletin board where there may be more
of the same types of people looking for housing. You may even offer a referral fee to anyone who
sends an acceptable applicant.
Step 4 - Continually expand your "model" tenant ideals.
Identifying common characteristics of good tenants is not an argument for discrimination.
As we are reminded by the federal anti-discrimination laws, don't ever judge a book by its cover.
You would be wise to remember that the more you are able to expand upon the qualities and
characteristics of good tenants, the more of them you will be able to target and attract.
In short, you want to spend some time identifying your ideal tenant, creating effective
advertisements or flyers that will attract them and then determining the best ways to get your
listing in front of people who will most likely desire the amenities you offer, want to live in your
area and who can afford your rent.
2) TELL IT LIKE IT IS
Once you have found your ideal tenant, you will need to have a plan in place to nurture
a healthy landlord-tenant relationship. First and foremost, you need establish a very clear
understanding about what you expect of the tenant and what they can expect from you. Take your time
going over the lease, explaining the most potentially problematic issues such as the rent due date,
late fee assessments, lease violations, notices and remedies, reporting repairs and maintenance,
entry and inspection situations, move-out procedures and security deposit refunds. You want to be
clear about your strict adherence to your policies and procedures but also sure to illustrate your
respect for your tenant's rights and needs as well. This sets up a friendly and professional
atmosphere in which you can both thrive.
3) PRACTICE WHAT YOU PREACH
4) MAINTAIN COURTEOUS PROFESSIONALISM
Having clear communication with your tenant is only part of the equation on keeping
good tenants. Another consideration is that you consistently practice what you preach. For instance,
if you're policy is to assess a late fee on the 6th of the month, resist the urge to waive the charge
for the first time "out of courtesy". On the contrary, being strict with your policies
will send a very important message to your tenant about taking the terms of the lease seriously and
will be a significant factor in avoiding problems in the future. The minute you demonstrate flimsy
boundaries, especially in the beginning of the relationship, the more likely a tenant will be to take
advantage of you in any and all situations they can. The time to show leniency, if ever, is after
your tenant has demonstrated responsibility and respect for the lease terms in the past.
One last suggestion that will earn you respect and loyalty from your tenants is the
ability to always be courteous and professional. This means:
- While you will want to be friendly with your tenants, do not become their "friend".
Remember: it's difficult to evict a "friend".
- Avoid getting emotionally involved or arguing with your tenants. If an uncomfortable situation
arises, make all communications in writing and stick with the facts.
- Deal with issues that arise and deal with them in a timely manner. This includes, dealing with
repair and maintenance items or returning not-so-urgent phone calls. The more you show your respect
for your tenants' time, privacy and personal needs and comfort, the more likely they will reciprocate.
- Once a tenant has demonstrated a consistent respect for you and the terms of their lease, reward
them by going out of your way to accommodate them when the need arises. Use opportunities (such as
minimizing or eliminating annual rent increases) to develop a mutual trust and appreciation that
will ever increase your tenant's happiness and desire to stay. This will make you more money in the
Being conscientious about how to attract and keep good tenants will make a significant
difference in your experience as a landlord. Pay attention to what tricks of the trade work well
for you and use them as opportunities to achieve more and more success in attracting long term, loyal
and happy tenants. This is a win-win situation for all and will significantly improve your experience
as a landlord, not to mention your pocketbook!
Copyright 2004, Waypoint Management Group, LLC. All rights reserved
About the Author
Shannyn Flory is the author of The Complete Landlord e-Guide and owner/creator of its home website
at www.landlordeguide.com. After
more than 10 years as a rental property investor, manager and owner of three property management
companies, she has recently turned her focus toward helping educate first time landlords. Her e-book
and companion website with hundreds of relevant links, were designed to teach the tricks of the
property management trade in an effort to maximize profits and minimize risks as a property manager
and investor. She also publishes a free monthly newsletter at her website with informative articles,
frequently asked questions and product and service recommendations.
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