1. Set clear expectations in your lease agreementCreating a strong tenant-landlord relationship starts with a clear and fair lease agreement.
This document not only ensures compliance with local real estate laws around security deposits, rent increases, insurance requirements and more — but also serves as a way for landlords to communicate their expectations to renters.
- Lease agreements should include a landlord’s policies and preferences around all aspects of their rental property, including basic details like rent amount and due dates as well as house rules around subletting, pets, smoking and repainting.
- Landlords should also outline who is responsible for utilities and landscaping and note any areas of the property that are not accessible to tenants, such as a basement or shed.
- Additionally, landlords should update a lease agreement at the time of renewal or whenever a new tenant moves in to ensure it reflects your most up-to-date standards for tenants. And of course, these documents must comply with local real estate laws, which vary from state to state.
2. Promptly address tenant concernsA big part of keeping good tenants is being responsive to their requests.
Tenants need to know they can rely on their landlords to listen and take action when an issue arises.
- establish preferred communication channels for emergencies, non-urgent requests and maintenance issues.
- Maintain an open dialogue with tenants and encourage them to report issues early
- Quickly responding and following through on their requests
- Timely repairs also maintain your property value
- Lastly, when you need to access the property, respect your tenants’ privacy by giving them notice about 24 hours before your arrival.
3. Provide flexible payment options
Your tenants, like everyone, are dealing with all sorts of stressors that can cause financial strain.
Everyday struggles, such as losing a paycheck in the mail, dealing with a health issue or not receiving enough tips at work that weekend can determine whether tenants make rent that month.
- landlords can help by being empathetic to their tenants, especially during times of financial distress.
- Offering flexible rent payment options
Here are a few ideas to consider: - Accept partial rent payments or perhaps you adjust that month’s rent deadline so tenants pay 50 percent on the first of the month and the remaining 50 percent on the 15th. If you don’t want to set a bad precedent, be clear that this exception just applies to the current month.
- Consider adjusting the rent due date: Ask your tenant if changing the rent deadline would help them pay rent on time.
- Offer multiple payment methods: Tenants are more likely to pay rent on time if their preferred payment method is accepted.
4. Bring value to tenants through rent reporting
Rent reporting is a relatively new service that enables tenants to build their credit and improve their credit score by reporting on-time rent payments to the credit bureaus. Providing this benefit to tenants not only encourages timely payments but strengthens a landlord’s relationship with their renters.
5. Offer incentives for lease renewals
If you have great tenants and want to hold onto them, reach out at least three months before the lease renewal to get an understanding of their wants and needs.
While tenants may ask for lower rent — or at least no increase — there are other creative ways to incentivize them to renew. You could set a longer lease period to lock in their current rent price or even a discounted rate.
Can you upgrade the appliances? Allow tenants to lease the unit to approved subletters? Give them free parking or storage?
And if you do have to raise the rent on good tenants, soften the blow by providing ample notice and explaining the reason for the increase (e.g., market conditions, rising property insurance premiums, etc.).
Whenever possible, raise the rent by a more palatable 2-3 percent, instead of a sudden 10 percent increase.
These strategies help landlords create a positive experience for their tenants, which in turn keeps them happy and minimizes turnover.
Call us at (480)205 2234 to get more information on current mortgage rates whether you are considering a primary or investment property.
