Our philosophy is that there is one golden rule to dealing with your tenants – keep them happy! A happy tenant is less likely to find justifications to skipping rent, trashing the apartment, or otherwise causing trouble – or even just not renewing their lease. Let’s face it, turnover is expensive. And if you have a good tenant, you should hand on to him tooth and claw. So, how to keep your tenant happy?
- Establish a clear, unambiguous and comprehensive contract: nine times out of ten, disagreements and rancor arise from the landlord and tenant having very different ideas as to their obligations. This goes beyond paying rent and utilities – you also need to specify who is responsible for what repairs and maintenance. This is especially true for the yard, if your property has one. Many landlords seem to assume their tenants will share their passion and excitement at a well maintained yard (which obviously boosts property value) and don’t bother spelling out that maintenance is part and parcel of the lease.
- Stay friendly, but professional: you want a tenant who is responsible, conscientious, and while friendly, does not burden you with his personal problems and demands concessions on their account. So reciprocate.
- Answer the phone/email: there is nothing more irritating to a tenant than not being able to secure a prompt response when something goes wrong in their home. That is precisely my most prefer dealing with a management company – they know someone will be there to rapidly resolve any issues that may arise. If you don’t have a management company then you need to be prepared to call them back and make yourself available to resolve any issues – promptly, not when you can clear your schedule.
- Don’t procrastinate on periodic maintenance: whether it’s clearing the storm drainer, or inspecting the plumbing, don’t wait for a crisis to fix, keep ahead of the problems.
- Maintenance also means cosmetic touches for the long term tenant: If you won the lottery and secured a long-term tenant, then don’t be a cheapskate and offer him a freebie fresh paint and carpet cleaning every two or three years.
- Contain and eliminate the bad apples: Are you managing a multi-family residence? There is nothing more irritating to your tenants than an obnoxious neighbor who undermines their ability to live peacefully. Address the issues such a bad apple raises promptly – and don’t renew their contracts.
- Respect the privacy of your tenants- Do you value your privacy? So do your tenants. They rightfully don’t want you dropping in unexpectedly. In fact, they would rather pretend you don’t exist unless they have a problem. If you need access to your property, and you occasionally will, give them due notice, and do your level best not to visit more than two or three times a year.
- Don’t be too greedy – you may see no reason not to raise the rent year by year as high as the market and the law will allow, but your tenant will likely take a different view of things. If you want to keep him, stay just a bit below the market rate.
- Offer multiunit incentives to fill vacancies: this won’t just increase your chances of filling vacancies, it will also increase retention if friends are living in the same building. Think Chandler and Ross.
Show you appreciate them:
A Christmas card and a complimentary bottle of wine isn’t just a feel good gesture – it’s also a very small investment for a huge return in tenant retention.
