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CategoriesLong Term Rentals Real Estate Investing

Screening Criteria: The Best Line of Defense

By brioproperties,

Screening criteria is always important.  You should always be following your screening criteria every time you process an application or talk to a prospect. But nowadays I find myself pontificating more and more about screening criteria on investor forums. Why? Because in the midst of these eviction moratoriums and other restrictions, our screening criteria now is our most important line of defense.

One of the things that has fundamentally changed for us is how much weight and significance we place on our screening process.  In a way we have tightened our screening criteria. Now this isn’t to say it was loose and wild before, because it certainly wasn’t.  We’ve made small tweaks that have made the difference in what applications are accepted and what ones are not.

I’m not going to go into specifics in our screening criteria because what is permissible for us here in Wisconsin can be vastly different than what you can do in other states.  Even your county or city can have a say in what is legal for screening criteria.  This is more to get you thinking about your own screening criteria and pondering how you can make it more ironclad to get the tenant you want for you unit. 

I should stop and say that of course with a more stringent screening criteria you may face a slightly longer vacancy BUT would you rather have it sit an extra 3 weeks for a highly vetted tenant versus roll the dice and possibly get stuck with a tenant who can’t pay in a city where judges aren’t giving evictions of any form the light of day?

#1 Consider Adjusting Your Credit Score Parameters

Our screening criteria uses credit score as one of the main determining factors.  One of the ways you can help reinforce your first line of defense right now is shore up your credit score requirements.   Increase your minimum score requirement. What class of property you are renting out will play into how much you might want to adjust the bottom score.   Consider a tiered credit score system where a credit score in this range is X% of deposit more.  Tier systems usually have the denial score, 2 middle tiers with additional deposit, and the top tier which is standard accept.

#2 Collect First, Last, and Security Deposit

This is something I have personally never done yet it is a practice that is used a lot by large complexes or bigger rental owners sometimes.  You may have heard the term “first and last month’s rent” from a renter when they are inquiring about  move-in terms.  That is different.  (I also could go on a separate rant about why this turn of phrase is horrible.)  In this equation we are collecting the first month, the last month as well as the standard deposit.  (CAUTION: Check your state statutes on how you are permitted to record this.  Some states won’t allow you hold future rent payments so you may have to refer to it as a security deposit in your records and possibly your ad as well.)

Now if you think this is crazy because “the economy is rough and people don’t have savings”.  Numerous banks are pointing to a record high of savings in their bank accounts. Also, when the economy is rough that is when you want to protect your investment the most. 

#3 Get Those Employer References

I prefer employer references over rental verifications any day of the week.  A landlord or management company may have a vested interest in embellishing the facts to get rid of their not so great tenant. Employer references rarely have anything at stake in their report on an employee in a screening process. Throw in a question like “Is there any reason this person may not be employed by the company in ____ months?”  Place more weight on the employer’s reference than a stellar rental verification.  

#4 Stick Your Criteria Like Glue

Now is not the time to make exceptions to your screening criteria.  You set those parameters for a reason. They are meant to help you locate the ideal tenant for your property. Why during uncertain times would you suddenly view the document as guidelines?  During tough times is when you should look at your screening criteria as iron clad.  It’s what you created to bring you the tenant you wanted to rent to in the first place.  Don’t get desperate and lessen that criteria.  (Not to mention getting flexible with your criteria may cause Fair Housing issues.)

CategoriesLong Term Rentals Real Estate Investing

COVID-19 & Tenants: We’re Not Done Yet

By brioproperties,

Tenant Communications during Covid-19

By Kim Schmitt

Operations are still changing by the minute. Landlords and Property Managers have had to make quick business decisions and establish a clear plan for communication with tenants.

First and foremost, Landlords and Property Managers need to collect and properly disseminate all available contact information for your staff and tenants. Have alternative communication methods established (website, app, text), in case physical contact gets disrupted again as Covid-19 mandates change. 

Remember that Covid-19, social distancing, and isolation will affect everyone differently.  You will have tenants that lose jobs, that get sick, that may lose loved ones, are forced to homeschool their kids, or become extremely depressed.  With this said, it is important to realize that these are not “normal” times and understanding this will make you a better Landlord or PM.

Your tenants will continue to have many concerns, so sending reminders via email can help ensure that scheduled appointments are kept and rent payments are under control. Do not look at this as “babysitting”.  Look at this as protecting your interests, being proactive and showing that you have a good understanding of where we are today as a whole. 

As you communicate with your tenants, think about the following questions:

Have you communicated changes in operating hours, available services, scheduling maintenance repairs, communication channels to the Property Manager, and safety protocols to tenants?

Have you communicated protocols for when maintenance goes into your tenant’s homes and during workorder scheduling? Are you asking if anyone has been sick or are currently sick in the home? Are you asking outside contractors what their protocols are during Covid-19 so that you can relay this to the tenant during scheduling?

If a Tenant or Staff Member Gets Sick

If tenants or staff members are diagnosed with COVID-19, your obligation to notify tenants will vary according to lease terms, public health mandates, state regulations and industry standards. 

Rent Payments

Your online services are a keystone of keeping up with rent payments as the world reacts to the coronavirus. Instruct tenants to use web-based services, apps, and portals to make rent payments whenever possible. 

Rental owners and managers are STILL facing the reality that many residents will not be able to make their rent payments – likely through no fault of their own as businesses are closing once again across the nation. Your tenant communications plan should include instructions for tenants with economic hardships to contact you to discuss options.

Effective September 4, 2020 through December 31, 2020, there was a federal moratorium on residential evictions due to failure to pay rent put into place because of the impacts COVID-19 for tenants that meet certain criteria.  I would not be surprised if this gets extended well into 2021. 

The federal moratorium order offers five reasons evictions can move forward: criminal activity, threats to other residents, damage to property, violation of building codes or violation of any other aspect of a lease.  With this said, use caution and pick your battles wisely. Make sure that you fully understand what this moratorium means as a Landlord or Property Manager.

As a side note, have you reviewed your property insurance coverage so that you understand specifically what types of incidents are covered? (What will happen, for example, if a tenant receives a positive COVID-19 test and the virus spreads? Could you be held liable and if so, how can you prevent it?)

CategoriesLong Term Rentals Real Estate Investing

Reasons Why You’re Tenants Are Moving

By brioproperties,

Reasons Tenants Move Out of Their Apartments

By Kim Schmitt, Managing Broker

As a Landlord or Property Manager our goal is to minimize unit turnover rates to insure a steady passive income. Unfortunately, turnovers happen, and they occur due to a multitude of reasons. Let us look at the most common reasons that tenants move out.

  1. The Tenant Cannot Afford the Rent
  2. Apartment Size
  3. Job or Relationship Status Change
  4. Neighbor Issues
  5. Maintenance Issues

Throughout my years in this industry I have found the above reasons for tenants moving out to be the most common. As a Property Manager when I received a notice that a tenant was vacating, I would not just mark it on a calendar and call it a day.  I would follow up with the tenant to get a good idea of the reason why they want to leave as they do not always disclose that information in the letter. More times than not I have been able to keep the tenant by offering an alternative idea. With this said, there are instances where both the tenant and manager have no choices and the tenant ends up moving out.  However, it is always worth the time to look at the big picture and see what can be done to keep a good tenant. 

What can we do to keep these Tenants?

The Tenant Cannot Afford the Rent

Reasons that cause tenants to no longer be able to afford rent are usually completely out of our control and often out of the tenant’s control. So, what can we do if we really want to keep the tenant? We have two choices; both may be worthy of consideration. The first is that we could offer to relocate the tenants to one of our lower priced vacancies if one is available. The second would be that we could reduce the rent in order to keep them. If you choose this option, you will want to compare the rent decrease to the cost of preparing a turnover and the time the unit could sit vacant. Say you can keep the tenant by reducing the rent by $50 per month, this comes to a loss of $600 over a 12-month lease. I guarantee that the preparation for the turnover usually costs more than that, plus the loss goes up if the unit sits vacant over an extended period. 

Apartment Size

This reason comes up when the size of the family changes which causes the tenant to need either a larger or smaller living space. Empty nesters, having babies, new couples or a tenant is becoming single tend to move due to apartment size. Here is what we can do in this scenario to keep the tenant. Offer the tenant a smaller or larger unit if one is available. This would be our first and best option. If this is not possible, offer an incentive such as upgrading their apartment by repainting or new carpet, give them a garage at a discounted rent or for free for one year, or lastly offering a reduction in rent to keep them.  This is where we can get creative to keep the tenant!

Job or Relationship Status Change

This is a tough one but not impossible. There is little we can do if a tenant needs to relocate for a job but what if the job change is only financial? Say they are going to have a decrease or increase in salary. In both cases, once again our choice would be to offer them another available unit that would fall within their new price range. This works for increases in salary as well. Maybe they want something bigger and newer. If we have a vacancy that fits their desire, we should offer it to them at this time. Relationships changes such as separation, divorce or marriage could be the reason. If this is the case, then offer any available rentals you may have so that the tenant has the option of staying. 

Neighbor Issues

While we cannot always control the next-door neighbors, we can control the type of tenant we move onto the property by utilizing good tenant screening procedures. It is so important to put quality tenants in your rentals. One bad tenant could quickly cause good tenants to move out of your property. In issues such as this it is always a good idea to try and get the tenants to talk out their issues, if they cannot do it on their own then you may need to mediate the situation. If this fails, you can offer a unit transfer to one of the tenants.

Maintenance Issues

Maintenance issues can cause a tenant to move. Tenant’s can quickly become tired of dealing with ongoing maintenance issues such as leaky roofs, pest problems, mold, clogged drains, etc. This is the one issue that we have complete control over by providing an easy way for tenants to report maintenance issues, quick response time and doing periodic maintenance upkeep.  

Summary

The takeaway from this post is to follow up on notices to vacate, you may be surprised at how your turnover rate drops if you think outside the box of ways to keep your tenants. We at Brio Properties are always looking at the big picture! Visit us often for more tips and tricks of the trade to ensure the success of your rental property investments. 

CategoriesLong Term Rentals

Bringing Back The Human Element

By brioproperties,

“Sometimes I show apartments. Sometimes I’m the enforcer. Most of the time though I’m a psychologist who provides housing to people.”

In a moment of bold zaniness I described my profession this way at a networking event last week. It got some good laughs. On the way home it reminded me of how much this business is about personal connections. Not just with our vendors or colleagues but also with our tenants. It’s easy to get caught up in the robot mode of the business. Where in a way we forget we are dealing with people.

I’ve talked with tenants over cheating spouses, divorces, life traumas, milestone events, promotions, demotions, and more. I’ve learned so much about thought patterns and societal norms from these conversations. The conversations that I’ve been privileged to have with my tenants, when they have confided their worst life stories in me has made me a better person…and better investor.

I’m not changing my mantra. Our industry is still a business and we need to run it as such. Yet there are times when the human element is applicable. We are different than big corporations like Chase, CitiBank, or any other big name vendors people use on a daily basis. Why? Because we as property owners interact with our tenants on a consistent basis. Emails and texts are exchanged. Property visits are made where we cross paths. Their lives play out in a building we own. All of this creates an environment where we find ourselves as the sounding block, consoler, and therapist.

How does one walk the line between business robot and business with people skills? Well there are obvious ways we can do this. When we hear a tenant has lost a loved one (and it’s not a story…) send a condolence card in the mail. Go the extra mile and google “sympathy messages” to include a handwritten sentiment of your own. Some owners send birthday cards, congratulations on your baby or promotion cards as well. These are easy every-day ways to remind your tenants that you know they are more than your mortgage payment.

Yet, at times you may be forced into a situation that requires more than a sympathy card. About 6 years ago I got a call at 11:35pm from the police that my tenant a 24 year old with a 3 year old son had been killed in a drunk driving accident. (I know exactly where I was and what time it was because you don’t forget things like that.) I went over to the unit to be sure it was secure and wait for the police who needed locate her son yet. With the police presence, neighbor’s slowly started to congregate outside the building near her apartment. Then a police transmission gave away what I hadn’t said yet. “…Be advised decedent’s son is at her mother’s currently. Officers just verified location.” At that moment to the crowd gathered around with me I became the therapist. I kept that role for months. When they came in to pay rent (just a few days after her death) they were all still in shock. I’d be at the property and I’d stop and chat about Jessica for a bit as part of their healing process. Listen to their stories, tell one or two of mine. When one tenant moved out because she couldn’t handle the daily memories 4 months later, I hugged her and consoled her one last time as I took the keys from her.

I’m a counselor. Therapist. Life coach. Cheerleader. Property owner. I don’t mind being these things and I don’t let what I know interfere with it being a business. If I show sympathy it doesn’t prevent me from being the enforcer who still needs the rent paid. If I congratulate them on a birth it doesn’t mean I can’t critique them when their children leave toys in the hallway. If I show empathy and sympathy I am creating a bond which ultimately creates a sense of loyalty. Those that I’ve been there for have not been the ones that “screw me over” by skipping or getting behind or damaging the property. They end up being my most respectful tenants and sometimes long lasting ones.

CategoriesLong Term Rentals

It’s Okay To Let A Good Tenant Go

By brioproperties,

A very good long-standing tenant of mine recently gave notice to move.  Of courses I’m not thrilled at the prospect of having to find another renter but I’m accepting it and a little excited about it.  Why on earth am I excited about having a long-time good tenant leave? Market rent.

For starters, this tenant has been in the property for 8-9 years. A good tenant. Quiet. Very few work orders.  Does random acts of kindness for me as the owner. Great guy. I’ve been in this guy’s shoes before. I remember when I was renting I got a version of the seven-year itch.  I started to dislike going home. I started spending more and more time away from home (much to the displeasure of my disabled husband). I was actually depressed by my environment I’d been there so long.  When I got my tenant’s notice, a little of my personal experience played into my reaction. But even more was the realization that I could now more easily get the unit up to market rent.

The market I invest in is changing.  Big time. In a good way. Rents are going up almost exponentially.  For those of use operating middle class rentals, it’s great news. But it’s “appreciated” so much that it’s difficult to keep up when the units are occupied. Very few people will stick around when you get a $25 or more rent increase.  They will instinctively move-on.

Part of the logic is “well if I’m going to be paying more…I may as well move somewhere else because I want to be closer to Target…[or on the other side of town, etc]”.  Basically they will rationalize their reason for moving with anything that could possibly be out of your control. They just don’t like spending more money on the same thing. It’s like when you get a notice from your cable company that your bill is going up.  Your getting the same services, but your bill is going up.

I know I will have to put money into the unit.  I will have to get carpet and vinyl but in my mind it’s for the better of the portfolio.  I’d rather spend $1200 getting the unit ready, bring the unit rent up by $100 and be at market rate sooner.  Even if the tenant only lasts one year I will have the unit revamped and have paid off the turnover. If the market goes up again, I can tack another $10 on if the tenant stays.

Plus, I won’t lie.  I’m a little excited by the creativity and possibilities that come with a unit rehab.

CategoriesLong Term Rentals

Tenant Proofing Your Units: Is There Such A Thing?

By brioproperties,

Most landlords would agree that the most aggravating aspect of being a real estate investor is tenant damage.  It is also one of the reasons most of us fear turnovers (preparing the unit for the next tenant).  Especially we have a gut feeling about the the unit condition.

I was listening to a real estate podcast a few months ago and the investor being interviewed mentioned he was attempting to develop a formula for “tenant-proofing” his rentals.  The idea is of intriguing.  He was quick to clarify that “tenant-proofing” did not mean making the unit (or an aspect of it) invulnerable to tenant damage. It was more about making a unit tenant-resistant as a more achievable goal.  My brain started going a flutter with the possibilities.  

After a few months of research and now implementation into my last vacancy I believe there are ways we can make our units tenant-resistant.  Part of it is due to better technology for flooring, blinds, etc.  Others are going back to the way things were “back in the good ole” days.  Yet some are simply thinking outside of the box for rentals.

Hollow Core Doors v. Other Doors

As landlords we do look at the price tags of items we buy for our rentals. It’s how we keep within a budget that makes our units cash flow.  Doors are not inexpensive especially when we may have to include staining or painting them in addition to simply buying it.  There are typically 3 kinds of interior doors to choose: hollow (least expensive), foam core (moderate price tag), and solid core door (most expensive).  The difference between a hollow door and the foam core door is like the difference between an spoiled apple and and ripe apple. The spoiled apple (hollow core door) easily gets dinged and punctured where as the ripe apple (the foam core door) can withstand a more pressure.  A solid core door would be the most durable option but I’ve been told the difference between foam core and solid core is not enough to justify the price tag.  There is usually a $15-$20 price difference between hollow to foam, then a $30-$50 jump from foam to solid.

Backsplash The Kitchen

One of my favorite things to do is to add a backsplash that runs the entire height of the wall space between kitchen counter and the bottom of the upper cabinets.  Its add dimension to the kitchen and also prevents wear and tear on a very tricky area to paint.  (It is the most annoying part to paint in my opinion.)  A backsplash can be individual tile and grout, a premade sheet of smaller tiles, or decorative tin or metal pieces.   The great part is that with the exception of tile and grout, the other options can easily be DIY.  

Get Rid Of Carpet

If you are still putting carpet in your rentals it is also one of the biggest ways you are inviting tenant damage and wear and tear.   Laminate flooring technology has increased greatly in the past 5 years so if you haven’t evaluated it lately at trip to your home improvement store is in order.  Now this isn’t to say laminate is foolproof.  You will want to be sure installation is done properly to avoid gaps.  It needs to be snug and tight.  If you rip up your carpet and find old hardwood flooring.  It may be salvageable.  You can rent an industrial floor sander for fairly inexpensive and cut your time and backbreaking work in half.  Best part is if you are a fan of golden tones you may not have to stain the floor. Poly brings out a warm golden hue in most wood floors.  Be sure lay down at least 3 coats poly.  After All, this is a tenant who will be living there and not you.  

Hinge Doorstops

For starters, if you aren’t making sure every door has door stop then that is an easy way to make your rental slightly more tenant resistant.  Yet baseboard door stops can easily get damaged.  Pets love to play with the baseboard door stops. Funny Fidos make it their mission in life to remove the nub (because its an awesome toy!).  Once the nub is gone your door stop is just a metal rod.   I like using hinge door stops lately.  I find that in combination with my foam core doors I barely have any door or wall damage from the opening of the door.  The nubs are also way to high for Fido turn into a toy.  

Heavy Duty Chair Rail Paint

As avid blog readers would know, all of my rentals that I own are old homes…I mean OLD.  So many of my units have items like chair rails, half wall paneling, and other wood details and accents not found in more modern rentals.  Needless to say these chair rails and paneling can take a beating.  I  took a suggestion from my handywoman and painted the chair rail and wall paneling with the epoxy shield-coating meant for basement floors.  Three months in it’s held up well where as with normal paint I would have had at least a half a dozen chips by now.  I won’t pretend it was easy to apply but the extra durability is proven to be worth it.

 

 

CategoriesLong Term Rentals

Setting the Tone For A Tenancy (Pt. 3)

By brioproperties,

As Written for the Wisconsin Apartments Association

by: Corina Eufinger

In this final look at “Setting The Tone For A Tenancy”, we look at move in day and the successive first 60 days of the tenancy.  This article will put all the puzzle pieces together on how the pre-tenancy phase sets the standards for the tenancy. We will look at situations that often arise when a tenant has been able to assert dominance in the relationship and how difficult it can be to get it back.

Chances are most of us have had a tenant call us before the 1st to see if they can move in early. Sometimes they are looking for just a day or two so that the 31st they can turn over their previous unit to the landlord with time to clean it (or so we hope is the case).  Other times they are looking to move in more like 4 or 5 days early. I have no problem appeasing these phone calls if 3 circumstances are met: 1) the unit is ready at the time of their call (no exceptions); 2) I haven’t already set their move in appointment with them (one of my personal pet peeves is rescheduled appointments for move-ins because the beginning/end of the month is always jam packed); 3) I can reasonably fit their request into the schedule. Also, no matter how many days they move in early, I always charge a daily rate. The only day I don’t charge for is when they take keys on the last day of the month.

I cannot stress this next point enough: NEVER LET A TENANT MOVE IN WITHOUT FULL SECURITY DEPOSIT AND FIRST MONTH’S RENT PAID (in a non-bounceable form).  Even if you followed all the other pointers that I’ve laid out in this series, if you throw this one  by the wayside you have lost control, and control over the most important part of the tenancy for a landlord. Money.

Under most circumstances a move-in goes fairly smooth. In theory there shouldn’t be a long list of repairs because everything is already done. But s*&$# happens. One of the ceiling fan bulbs decided to burn out as you turned it on, the batteries on the hardwired thermostat aren’t working even though you just replaced them, etc.  I have been there and most tenants are extremely accommodating when it’s small stuff like that. So there is no reason to rush a maintenance guy over or quick grab your batteries.  It can be handled the next day. Responding like it’s an emergency to a standard repair on move-in day says to the tenant you react quickly to all maintenance repairs, all the time.  

If you find yourself with a tenancy where the tenant has seemingly taken control of the relationship Is it possible to regain authority in this relationship?  You can, but it is a painful and annoying process. You will need to be firm and use that backbone you hopefully have.  The tenant will complain you aren’t accommodating them anymore and accuse you of treating them differently. In reality you are treating them….more normally.  You’re not available at the drop of a hat anymore, you don’t respond to maintenance as soon as they call (emergencies excepted).  Other than how annoying this process is given the “lip” you will likely get, what is worse is that by changing your over-accommodating behavior after move-in you have also proven the idea that once you are a customer no-one really cares.  

If you have to regain control financially, it gets a little more sticky and…expensive. When you issue a 5-day notice they are shocked you would do such a thing. You likely got a less than pleasant phone call from the tenant telling you that you are a horrible person and why does it suddenly matter because it didn’t before.  If they don’t pay up during that period, they are trying to call your bluff.  You cannot back down from this.  You must file the 5-day.  File, get a process server, etc.  If you don’t follow through at this crucial stage you will never be able to regain control.  Your eviction threats will be hollow and meaningless. Don’t get caught in a trap where you chicken out of filing because it’s only one month.  If you have lost monetary control of the situation, you have lost control over the most important aspect of how successful your rentals are.  It doesn’t matter how safe and clean your housing is if you aren’t getting paid for it.   

Do yourself a favor and maintain control. Follow your rules and make your needs the priority (but not the need to fill the unit ASAP).  Be polite, but firm and accommodating when it fits your schedule.  Don’t place yourself in a rush or bind to appease the applicant or future tenant.  If you follow these rules, your future self may just build a time machine to come back and thank you for keeping their landlord life a little simpler.  

CategoriesLong Term Rentals

Setting the Tone For A Tenancy Part 2

By brioproperties,

Setting The Tone For A Tenancy

We prefaced last week that our actions from the start of contact with a prospective tenant, it can set a tone for the tenancy. In this blog we are going to focus on the pre-tenancy activities and how they can affect how successful a residency is for landlord and tenant.

It’s Sales 101 to always be pleasant and happy when someone calls that wants to rent your place.  After the prospect has decided that they would like a showing, your instinct it likely to tell them you can show it now and grab your keys. After all, you don’t want to miss out on renting it right?   people’s instinct is to jump and grab your keys.

You have subtly sent a clue that your schedule and time isn’t too important to you.  You will jump when the right keys are turned (so to speak). This is not the precedent you want to set.  You want to make sure the tenant knows that your time is of value to you and that you schedule your time carefully. Doing so will reinforce to the tenant that you have other obligations. It also avoids setting the false expectations that you will always jump to assist them.

When scheduling the showing try to do it at least 24 hours in advance (unless you have another showing already scheduled that you can piggyback). If your time is limited don’t be afraid to set an open house strategy. You can tell the prospect you are showing the property at 9am & 10am on Saturday and they are welcome to join you then.  The premise being that if the prospect is motivated enough, they will be there.

When you are at the property for the showing, it is important to remember that your time is money.  If the person doesn’t call within 5 minutes of the showing start time to say they are lost or had an emergency, don’t wait around.  Remind yourself that you have a schedule and other tasks to handle.  It is your choice if you choose to call the tenant about the missed appointment while at the property or later.   If you call while there do not allow them to monopolize your time more.  Offer to reschedule but make sure the next appointment piggy backs off an existing one.  (Just in case they don’t show again.)

If a tenant isn’t courteous of your time before they move-in, they aren’t going to value your time after.  If they don’t value your time they don’t respect you.  If they don’t respect you, they aren’t going to be inclined to pay you on time per your rules.

There is a difference between being flexible and a doormat.  If you become a doormat for the pre-tenancy phase you will notice rent due dates are fluid, rules are nice when they work for them,and your words aren’t enforceable. Your communication and actions should establish the idea that you are the one who will control the relationship. If they seize control in the pre-tenancy days you will never get it back and you will always be their second fiddle until you “man” up and kick them out.

In the next blog we’ll take a look at what happens after the prospect has seen the property.  We’ll address the subtle things you might be doing during the application and leasing process that further establishes a tone of tenant dominance.

Corina Eufinger

Owner Brio Properties & CRC Investments

CategoriesLong Term Rentals

Setting The Tone For A Tenancy

By brioproperties,

Two years ago I had a procedure altering epiphany that drastically changed how I ran my properties and those I manage.  It all started when I met a fellow investor at a networking event. After getting to know him for a few months, our conversations became more in depth and…well….useful. They transitioned from weather, etc to nitty gritty real estate.

I was expressing how I was frustrated with some of the newer tenants being demanding and flighty at the same time. I went on to explain who Iit was getting hard to get rent on time, tenants would scheduled repairs but then changed their minds one hour before appointment, and they only followed the rules that were convenient for them.  Immediately he began asking questions.

He asked me if the showings for these particular tenants were scheduled in advance or if the showings were done on demand.  He then asked if we had a security deposit and holding fee procedure.  Was the tenant late to any appointments in the beginning? At first I thought it his questions were unrelated and he had forgot what we were talking about.  Then I realized that his inquiries weren’t unrelated but were all funneling to a major point he was building up to.

After many questions he smiled and said “I know what your problem is.”

He went on to explain that from the moment my staff initially spoke to the prospective tenant we had already begun seceding power and establishing the tone of the tenancy.  My mind was blown.

When we reacted and scheduled a showing for a few hours from the time of the call I was showing them that their time was more valuable than ours. I furthered the problem by asking the leasing agent to stay 10-15 minutes later and her agreeing to show it when they eventually waltzed in. I thought we was being understanding turns out I was being a sucker.

Then the investor said the life-altering sentence “You have been setting the tone for a tenant dominated relationship from your first action.” I spent the next hour of the event going through scenarios and scribbling out notes and procedures on a stack of cocktail napkins. Yes I was that cliched person.  But those many napkins have turned into an amazing procedure and now…this blog series.

The next two blogs will take an in-depth look at some of the ways the tone of tenancy is set in the first 60 days of the relationship. Common landlord mistakes and ways to change it so you are establishing control of the relationship from the beginning.

Corina Eufinger

CEO of Brio Properties

Owner CRC Investments

Owner Brio Properties & CRC Investments

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