7 Ways to Build Good Tenant Relationships

1. Keep screening fees reasonable

It is critical to screen every tenant for evictions, criminal background, and credit scores.  These things will require small fees and that is expected in the industry.  Tenants will not be surprised they have to pay a fee.  Indeed, they are typically happy to do so if they like the unit and want to move in.  However, creating additional income through screening fees is not appropriate and will not start the relationship out on the right foot.  Keeping screening fees reasonable is always a good idea so that tenants do not feel burdened with a high fee.   

2. Charge more than one month’s security only when there is a legitimate reason

In Maine, the maximum security-deposit allowable is two months’ rent.  Most states have some limit, and some states do not have a limit at all.  Regardless of which state you own property, charging the maximum allowable deposit is a good way to get a tenant relationship off to a less than positive start.  To build trust, follow a fair standard which is usually one-month security.  Keep in mind that covering all the expenses involved in moving can really add up for tenants.  There are some situations where requiring more than one month’s security deposit is perfectly okay and expected.  

3. Consider including yard maintenance in the rent

Including lawn mowing in the rent has a few advantages.  First, your tenants will be thrilled that they don’t have to spend valuable time mowing the lawn on their time off.  Many tenants have never handled a lawn mower and cannot afford a licensed landscaping company.  No one wants tenants getting injured operating heavy machinery.  In addition, if the tenant hires a mediocre company they might not be doing right by your lawn and might also skip visits.  The quality of your grass and landscape helps retain the value of the property.  As the property manager, hiring a professional landscape company will assure your grass in well maintained, irrigated, weeded, and fertilized.  This also helps preserve the reputation of property owners and managers, because neighbors will notice a poorly kept lawn even more than they will notice a nice one. 

4. Consider offering tenants a background check

We have all experienced a less than stellar tenant in the past.  However, some tenants have also experienced not so stellar landlords as well.  Some landlords have experienced bad luck or made bad decisions in the past.  Property owners have been known to be unable to pay the mortgage on a rental property, or sometimes hold security deposits too long or don’t keep solid records of damages.  Should tenants be aware of this kind of history?  Yes, tenants should do their own research, but if you offer a background check or references of your own, they don’t have to.  This has the potential of being very impressive for a prospective tenant and gets the relationship off on the right track.   

Some tenants have been forced to move because the landlord couldn’t pay the mortgage on the home they were renting. These tenants are aware that it could happen again. Unfortunately, not every security deposit gets returned by owners or managers for various reasons.  As a property owner or landlord, if you send your prospective tenant 3 references from previous renters, it is an impressive way to build trust early on.  It’s honest, transparent and demonstrates a reciprocal relationship.

5. Find opportunities to assist tenants

There are a lot of requests that you may not be contractually obligated to perform for your tenants.  However, there are also some requests that will not take a lot of time out of your day.  Tenants will really appreciate it when you go out of your way for them.  It is likely property managers will have requests of their tenants as well somewhere down the line. Tenants can make life easy on property managers but can also make projects more difficult as well.  Investing in these relationships early on can go a long way towards creating a two-way street.  It can be beneficial to treat tenants not just as another source of income, but as human beings and partners in successful property management.  This is one many reasons property owners hire property managers and appreciate the expertise that they can bring. 

6. Consider including electricity in the rent

Depending on the type of unit and how many people are living there, sometimes it makes sense to include utilities in the rent.  This can make things easier for the tenant by reducing the number of bills they need to set up during a busy move in period.  Many tenants want to be able to control their budget by having a set amount to pay each month without a lot of fluctuation.  Having one less bill to worry about can be a big plus and take away uncertainty.  Of course, there are disadvantages to this strategy.  Decisions like this can have pros and cons, so consider these first. 

7. Do not always charge a late fee

It is a good idea to consider the impact of late fees on your tenants.  While some tenants certainly need an incentive to pay on time, this is not always the case.  Keeping in mind the benefits of satisfied tenants, remember late fees need to be reasonable.  There is a good reason that policies must be in place but overcharging late fees will not necessarily lead to the best relationship.  There are also circumstances where late fees don’t need to be charged.  For example, if the rent is one day late and the tenants contacts you to let you know, this might be a situation where a late fee does not need to be charged. 

Are you an overwhelmed landlord, property owner, or investor?

Do you want a professional company to manage these decisions for you?  Being a landlord is a lot harder than some expect, and amateur landlords can get overwhelmed easily and make costly mistakes.  Big property management companies often overlook details and don’t give owners or tenants the attention they need to have a positive experience.  Consider contacting Honest Property Management so that we can send you a proposal.  Our team of experts can handle everything for the overwhelmed landlord, from rent collection and tenant screening to repairs and maintenance.  Please call us at Honest Property Management today so we can talk about making your experience as an investor or property owner worry-free and more profitable. 

Perhaps the best way to build good tenant relationships is to find quality tenants.  Look for our next blogs on topics like effective tenant screening, and which questions are legal and appropriate to ask tenants.