Posted by Teresa on October 12, 2010 under Landlord Tips | 
Landlords who have been at the business for a while know that relationships with tenants can be smooth and easy, or rough and rocky, depending on a number of factors. Often, it’s the tenants themselves—they can be trying! But sometimes, one of the factors is the landlord.
Rental property investing and management is a tough business, and being a pushover is quick path to disaster. Many landlords we talk to say it’s a fact that tenants can be “trained” to follow the rules and requirements of their leases. This is not to say that tenants are like puppies, or aren’t people who deserve respect—of course they do! It’s more of way of encouraging good behavior and enforcing consequences for breaking the terms of a lease. When landlords fail at this, they are in for a rough and rocky tenant relationship.
How to Train Tenants in 3 Easy Steps
- Communicate clearly—and often. It’s not enough to sign a lease with a new tenant and then go away. Need a question answered? Ask it. Is the rent late? Call, text or email the tenant. Concerned about the number of cars they’re parking on your property? Knock on the door and talk to them. Ignoring a problem will not make it go away. Establishing communication is the first step to developing a good relationship with your tenants.
- Clarify expectations. Most tenants are not mind readers. If you are not clear on your expectations, don’t blame your tenants for not fulfilling them. If rent is due on the 1st and considered late on the 5th, spell out what that means on the lease. Will the eviction notice go up on the 5th? Or will you just charge a late fee? If so, how much? And by “due on the first,” do you mean in your hand? In your bank account? Or postmarked on the first? If a unit is “non-smoking,” does that mean no smoking inside? What about outside on the deck? Or in the hallway or lobby? If residents are expected to smoke in certain areas only, then clarify it on a layout of the property.
- Be firm. For many landlords, this is a problem. For many others, being firm comes naturally. Remember, this is not just to keep tenants following your rules. It’s a matter of fairness. For example, if you allow the single mothers, but not male tenants, to move in without a security deposit, you risk a discrimination charge based on gender. If you ignore one tenant’s yappy dog, but don’t allow her neighbor to have a cat, you’re going to have problems. Know your rules, apply them to every tenant equally, and don’t back down when a tenant asks for leniency.
Training your tenants simply means that you require certain behavior from all who lease your property. When you allow tenants to bend or break your rules and requirements, they are training you on how it’s going to be. And that’s no way to run a rental property business!
Posted by Teresa on October 8, 2010 under Landlord Tenant Lawsuits, Landlord Tips |
Surprise! You Must Return the Tenant’s Security Deposit: When a tenant moves out and leaves significant damage to the rental unit, why wouldn’t you be able to just keep the entire security deposit to clean up and make repairs? Isn’t that the purpose of a security deposit? Yes, as long as the landlord or property management company follows the letter of the law. When they do not, the tenant can keep every penny of the deposit and walk away, leaving the property owner or manager to deal with stained carpet, water damage, wall gouges and broken cabinet doors.
While tenant screening helps reduce liabilities like renting to tenants who trash properties, anything can happen. Remember, if the law in your state requires landlords and property management companies to return security deposits or provide an itemized list of damages within 15 or 30 days (most do) and you fail to provide it, the tenant may seek recourse, including return of the security deposit, no matter how much damage he or she has left behind.
Surprise! Your Tenant is the Proud Owner of a Pit Bull Puppy: Whether your rental property is a pet-friendly one or not, most insurance companies will not cover a property where certain dog breeds live—and most include pit bulls on the list of prohibited breeds. Of course, your lease should state clearly the policy on pets. When a tenant sneaks in two cats above the one you approved, blatantly ignores your “no snakes” rule, or thinks your “no pit bulls” rule applies to another tenant, then you are within your rights and responsibility to give notice to remove the animal(s) or face eviction.
Remember, tenants don’t always read their leases. When signing a lease with a new tenant, read over each and every paragraph and make sure they understand the consequences of breaking any of the provisions of the lease. If you review a “no pets” policy with a new tenant, inform them that they will be evicted if they bring a pet into the rental unit, then moving forward with eviction is the only recourse. Other tenants will see you enforce the rules.
Surprise! Tenants are Your Customers: Keep your tenants happy by respecting their right to live quietly and enjoy a home where everything functions properly. Keep your tenants safe by installing adequate lighting and locks. Keep your tenants satisfied by giving plenty of notice when you need access to their rental unit. Help them carry the couch in on moving day. Be proactive when making routine repairs and keep everything well-maintained. You’ll be surprised how many more referrals you’ll receive when your tenants are happy.
Remember, you’re in a business where you have a product (your rental property) and a service (your management of said property) to sell, and a customer who needs them. Your tenants are your customers, and good customer service will go a long way to making the landlord/tenant relationship a more successful one.
Posted by Teresa on October 6, 2010 under Landlord Paperwork and Forms, Landlord Tips |
Common gripes between landlords and tenants can often be prevented through clear communication. And by “clear,” we mean “absolutely, crystal clear.” Murky, misunderstood or meaningless agreements almost never work in the rental property business.
Four simple steps to clear communication:
- Say exactly what you mean.
- Put it in writing.
- Make sure the tenant understands.
- Get the tenant’s buy-in.
Say exactly what you mean: If you require pet deposits for the privilege of housing a pet in your rental property, specify if they are refundable with no damages or non-refundable and not intended to cover damages. The vague term “pet deposit” could be interpreted to mean “refundable if my pet does no damage.” The day a pet-owning tenant moves out and expects that deposit back is not the time to explain that you really meant it’s non-refundable, damage or no damage.
Put it in writing: We’re not lawyers, and of course you should always consult with yours before proceeding along the path to any agreement, but do remember that when it comes to landlords and tenants, the “he said, she said” argument rarely wins over a signed, dated agreement. When it comes to the landlord business, the more signatures, lists, photos and pieces of paper you have, the better.
Make sure the tenant understands: Never assume a tenant knows what you’re talking about. This doesn’t mean you should patronize or talk down to a tenant—or treat them like they’re in kindergarten. It does mean to take the time to explain every detail of the lease agreement, tenant rules, pet policy, causes for eviction, quiet hours and even appliance operation. Whatever it takes to establish a respectful, mutually agreeable relationship in the beginning will pay off through the time of the lease. It takes time and effort to look a tenant in the eye, ask if they understand, explain if they don’t, and obtain a signature saying they do. But it can save a lot of hassle down the road.
Get the tenant’s buy-in: Don’t dictate to your tenants. Help them understand that every rule, every procedure, and every effort on your part is to make their rental home a place they and their neighbors want to live. Ask for their cooperation in making it so.
Sounds simple, right? As with anything that’s worth doing, establishing clear communication with tenants may take time and practice. But it can’t hurt to try and see if it makes the landlord/tenant relationship a little smoother and more pleasant!
Landlords who have been at the business for a while know that relationships with tenants can be smooth and easy, or rough and rocky, depending on a number of factors. Often, it’s the tenants themselves—they can be trying! But sometimes, one of the factors is the landlord.