SS101: Managing Tenant Expectations

Successful rental experiences for both, the tenant and the landlord, depend on good communication and established expectations. In this episode, Charles discusses what expectations you should set with your tenants prior to move-in to ensure a positive rental relationship.

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Transcript:

Charles:
Welcome to Strategy Saturday; I’m Charles Carillo and today we’re going to be discussing managing tenant expectations.

Charles:
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Charles:
After many years of the landlord, both self-managing properties and hiring third party managers, I have found that a successful rental experience for both the tenant and the landlord depend on both good communication and established expectations.

Charles:
If you’ve heard prior episodes of the show, you know, I’m a proponent of cover letters on leases. The simple reason being most tenants do not read the lease. The cover letter spells out the important parts of the lease that you can easily review with a tenant when they’re signing the lease. This is also a great place to list expectations Before tenancy, I would literally go through the two page cover sheet with tenants and make markings with a highlighter of, of important points. Now, expectations you should be setting prior to move in would include expectations in terms of rent collection, when it is due, how it should be paid, and what the consequences are of late rent. A late fee and the eviction process starts X number of days after rent is due. This is gonna make it much harder for tenants to try and negotiate with you since you already have set terms expectations in terms of maintenance.

Charles:
So regular maintenance and after hours emergencies, who should they call and what are the examples of each tenant responsibilities? For example, trashes collected on a Wednesday. So bring your trash out Tuesday night, parking rules, utility responsibilities, pets, additional roommates, et cetera. Explain what normal wear and tear is and what is not normal. Wear and tear set. Move out expectations at the time of tendency. And when someone notifies you, they’ll be moving out How they will need to leave the unit when their security deposit will be returned. And know we will not use a security deposit toward your last month of rent. I cannot stress how important it is to make expectations prior to move in. And with some tenants, you’re gonna need to remind them of the expectations throughout the lease. Uh, someone’s window blinds breaks on a Saturday, we’ll go there on a Monday.

Charles:
It’s not an emergency. Someone has water leaking to their apartment. We’ll be there within 30 minutes. And keeping open lines of communication is the best policy. Always have a number that tenants can contact you or your firm with. Usually, uh, it’ll be like a nine to five number and then maybe an after hours number for emergencies. And then possibly this number goes to an answering service that will email or text you and your handyman. The the best way. If there is an issue and these aren’t that expensive, you can get an answering service pretty inexpensively, and they’ll send you an email. They can send you text, they’ll send it to anybody you want. They’ll take the message and send it out, and then you get it. Your handyman would also get that or your team, and then the person, whoever’s responsible or on call will go and do it.

Charles:
But you’ll have an idea. You should also be on that as the owner and you have an idea of what’s going on, and that’s a very inexpensive, easy thing to set up. Larger operations might have an online portal, but if there’s an emergency, I really want to have the, the tenants should have a phone number and I wanna be alerted as soon as possible what is going on. Especially like if there’s some sort of issue with water because it can like damage to your property and it’s probably one of the most damaging substances that can enter your property. So handle tenant problems swiftly. Do not delay a response or action. Issues begin when landlords or tenants avoid the other party handle issues immediately, and this will help you keep good tenants. So if a good tenant or any tenant has a problem, you know, tell them immediately that you’ve received it, you’re gonna start working on it.

Charles:
And, um, and then let them know as soon as that you have a resolution to it, let them know. And that open lines of communication is gonna allow you to keep the good tenants. And you can then sift down any tenants that are less than ideal. Let’s say being a landlord is a two-way street. You wanna let your tenants know that if they pay their rent on time and respect their neighbors and the property, you’ll make sure to make repairs and maintain the property throughout their tendency. And you need to be firm and fair. The longer you keep tenants in your units, uh, it’s gonna be the more money you’re gonna make. And that is really what it all comes down to. You’re never gonna maximize the profitability of your property. If you have tenants leave every 12 months or less. Landlords start maximizing the profitability when tenants are staying for 24 plus months. Quality service will lead to quality tenants. So I hope you enjoyed, please remember, great review, subscribe, submit comments and potential show [email protected] Look forward to two more episodes next week. See then,

Announcer:
Nothing in this episode should be considered specific, personal or professional advice. Any investment opportunities mentioned on this podcast are limited to accredited investors. Any investments will only be made with proper disclosure, subscription documentation, and are subject to all applicable laws. Please consult an appropriate tax legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of Syndication Superstar, LLC, exclusively.

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