Think about how you make money as a real estate investor who has a portfolio of rental properties.
You spend a lot of time strategizing what you buy and where you buy. There are improvements you make to ensure your property increases in value.
When it comes to profitability, however, what you’re really talking about is tenants.
You cannot earn a lot of money in the short term or the long term unless you manage to keep your investment property occupied with tenants.
Once you see your tenants as valuable customers who contribute to your earnings, you begin to understand the importance of your relationship with those tenants.
As a landlord, maintaining positive relationships with your tenants should be one of your top priorities.
Strong landlord-tenant relationships help create a win-win situation where tenants are happy and don’t want to move out, and you avoid vacant units and the costs of frequent turnover. Vacancy eats into your earnings almost immediately. Turnovers can cost thousands of dollars, and if you have to do them every year, there’s a good chance you’re losing money.
You want to do everything you can to retain your tenants. In order to retain those tenants, you have to deliver a good rental experience. You need to establish and nurture positive and professional landlord/tenant relationships.
However, building trust and goodwill with tenants takes effort. It requires consistently demonstrating that you care about their needs and are approachable when issues do arise.
At Real Estate Gladiators, we’ve been managing rental properties in Monroe, Issaquah, and other communities throughout King and Snohomish counties for years. We have come to understand the importance of tenant relationships and how to encourage retention. So, we’re covering some of the most important practices landlords can adopt to foster strong landlord-tenant relationships from the get-go and keep them healthy throughout a tenant’s stay.
From clear communication and timely repairs to fair treatment and a respect for your tenant’s privacy, following these relationship-building strategies can help you work well with your tenants and keep them in place for the long term.
Why Does the Landlord/Tenant Relationship Matter?
The perception that landlord and tenant relationships are adversarial and unpleasant is extremely outdated and unfair to both parties. Good tenant relationships can save you money and even help you earn more on your rental property in the long term. You need a great relationship with your residents because…
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- Happy tenants pay rent on time. No chasing down late rent! No eviction threats!
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- Happy tenants follow the terms of your lease agreement. No unauthorized Pit Bull puppies! No painting the walls electric blue!
- Happy tenants help you maintain your property. No deferred or unreported maintenance! No extra damage or wear and tear at the end of your lease term!
One of the most important benefits to a good tenant relationship is something we’ve already mentioned: lower tenant turnover. You want to keep your good tenants in place. You want to continue collecting that rent on time and you don’t want to deal with turnover, vacancy, and finding another tenant.
Make sure your tenants know that. Show them that you want them to renew their lease agreement.
Tenants are likely to stay in place when their maintenance needs are taken care of, their landlords are responsive, and their rent doesn’t jump too dramatically. When you invest the time and effort in establishing and maintaining a good relationship, you get higher retention.
That translates to more money.
Establishing Expectations and Building Trust
A positive relationship between tenants and landlords starts even before the move-in date.
Give your prospective tenants the attention they need during the showing, application, and leasing processes. Be responsive when they’ve seen your listing and they call with questions. Make it easy for them to see the property. Check in after they’ve seen the home and find out what they liked, what they didn’t like, and whether they want to fill out an application.
When those tenants do apply, keep in touch as the information is received and the screening is complete. Don’t wait for them to come to you with questions. Offer your support and assistance early on in the process. They’ll appreciate your help.
Be open about your expectations. This will establish trust between you and your tenants.
At the beginning of the lease period, talk to your tenants about what you expect. Discuss the lease before it’s signed, and encourage them to ask questions. Your residents need to know how they should pay rent and what they’re responsible for in terms of maintenance and landscaping. They need to understand any HOA rules that may apply to them if your property is located in such a community.
Make sure tenants completely understand their responsibilities around pets, parking, and reporting repair needs. All that information should be in the lease, but if you talk about it, you can reinforce those things and demonstrate your willingness to communicate.
Tip: Make the Move-In Process Easy
Moving isn’t always fun, and a great way to establish a good relationship with your new tenants is to make sure that you’re not adding to their stress as they move in. In fact, see what you can do about making things as easy and convenient as possible.
You can help eliminate some of that stress for your new residents by providing a move-in process that’s transparent, easy, and effortless. This will create a great foundation for a positive relationship moving forward.
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Answer all their questions about the lease and their responsibilities ahead of time. |
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Make sure the home is move-in ready. It should be clean, functional, and ready for them. |
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Provide an introduction to how things work – show them how to turn the appliances on and where to find the air filters. |
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Introduce them to the area, especially if it’s a new neighborhood for them. Share suggestions on where to get coffee and groceries. |
These things will make a big difference during the early part of the tenancy and in your relationship.
Clear Communication Between Landlords and Tenants
Good communication always helps relationships. So, commit to open and transparent communication from the very beginning.
Do you know that 85% of tenant complaints stem from poor communication and disagreements regarding lease agreements?
Good communication is a vital tool that landlords must leverage if they want to manage their rental properties effectively and keep their tenants satisfied.
Here’s what we’re really talking about when we talk about good communication:
- Active Listening. Sometimes, tenants just want to be heard. If they come to you with a complaint that you have no power to fix, don’t brush them off. Listen and commiserate. This will build trust, and they’ll appreciate your compassion and empathy.
- Timely Response to Tenant Requests. Good communication requires participation from you and your tenants. It is equally important that tenants can communicate with their landlords, and they receive timely responses to their inquiries, complaints, and repair requests. Quickly addressing tenant requests can earn their trust and improve their satisfaction, which might, in turn, lead to referrals of new potential tenants.
- Keeping Communication Respectful and Professional. Respectful communication is essential. This not only means using professional language but also includes giving the tenant’s opinions and concerns due attention. By being open to suggestions, you can build a rapport with tenants, making it easier to resolve disputes should they arise.
- Check In Once in a While (but not too much). It is always beneficial to check-in with tenants, even when everything regarding the property is going well. Scheduling regular checkups can help you identify any potential problems before they escalate into significant issues. These checkups also provide opportunities for you to receive feedback and suggestions from tenants on what areas of the property they think might need improvement. Remember that you don’t need to be overbearing. There’s no need to call your tenants daily.
Effective communication is a vital component of building, nurturing, and maintaining a healthy landlord-tenant relationship. When both parties communicate clearly, respectfully, and transparently, it reduces the likelihood of disputes which can lead to escalated conflicts and hard feelings. It also promotes trust, making it easier for the landlord to address tenant requests and concerns satisfactorily.
Respecting the Privacy of Your Residents
As we mentioned already, tenants don’t want to hear from you every day. They want to know you’re available and accessible, but they also want to live their lives and enjoy their home without fearing that you’re right there, looking over their shoulder.
Respecting your tenant’s privacy shows that you value them not only as tenants but as individuals. It is crucial to understand the importance of privacy in a rental home and how it contributes to a positive relationship between tenants and landlords.
| Respecting Privacy Establishes Trust between Landlords and Tenants
Respecting tenant’s privacy promotes a trusting relationship. Tenants entrust landlords with confidential information related to their lease, personal affairs, and even family members. When the landlord respects their privacy, the tenant is assured that their confidences remain secure and that the landlord is reliable. This trust promotes a healthy environment with better communication and facilitates the resolution of any problems that may arise. |
Tenants are More Comfortable When They Have Privacy at Home
A tenant’s home is their sanctuary, their safe space, and should be respected as such. When a landlord ignores a tenant’s right to privacy, it impacts that comfort level. They feel violated, exposed, and the sanctity of their home is eroded. As a result, the tenant may become disgruntled, leading to poor communication and hostility. By respecting their privacy, the landlord creates an environment of warmth, comfort, and security. |
| Protecting the Property of Your Tenants by Leaving Them to Enjoy Their Home
Another reason landlords must respect tenant privacy is to protect their personal property. When landlords or property managers enter their rental home without permission, it could disrupt the tenant’s life. It may lead to accidental damage, theft, or even loss of property. Intrusive landlords can also lead to tenant displacement and potentially lose their accommodations. To prevent such occurrences, landlords must give a reasonable notice period to access rental homes. |
Better Property Management and Better Tenant Retention
By respecting a tenant’s privacy, you simply have better results with your relationship and your rental home. By encouraging privacy, landlords can build respect. When tenants feel respected, they are more likely to care for the property, make timely rental payments, and reduce instances of property damage. By cultivating a respectful tenant-landlord relationship, landlords can also mitigate disputes that could lead to litigation or tarnishing their reputation. |
Respecting tenant privacy is crucial in maintaining a positive relationship between you and your tenant.
Maintenance and Your Relationship with Tenants
For a lot of reasons, but also when we’re talking about relationships.
The way maintenance is handled at your rental property will always impact your tenant relationship. Ask any tenant why they left the home they were renting, and there’s a good chance they will tell you that the repairs they reported were not fixed on time. Or, at all.
Repairs are a concern for both landlords and tenants. And, nothing is more important to your tenant relationship than the way you handle these repairs and requests. Responding to repair needs with a sense of urgency protects the condition of your property and shows your tenants that you care about their comfort and safety. It builds up, rather than detracts from, your relationship.
Respond to maintenance issues right away, especially if there’s an emergency. Make sure your tenants understand what constitutes a maintenance emergency (this is part of the expectations we talked about earlier). Give them an idea of how quickly a problem will be fixed. If they report something minor or cosmetic that you don’t plan to address right now, explain why.
Availability is key. Your tenant is going to get very frustrated if there’s a major issue like toilets that aren’t flushing or air conditioning that isn’t working and you are impossible to get in touch with. Be ready to respond, and make sure your residents understand that you can be counted on to take care of both emergency and routine repair issues.
Make the Rental Process as Convenient as Possible
If you want to establish and maintain a good relationship with your tenants, don’t make their lives more difficult.
Instead, make their lives a little easier, especially when it comes to things like parking, pets, and rental payments.
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- Allow for online rental payments. This will make it so much easier for tenants to pay on time. Very few people are writing paper checks anymore. If you’re requiring your tenants to do this, expect some frustration on their end. Why not make it easy for them to pay rent? If you’re not sure you have the technology or the capacity to accept digital payments, talk to us. We may have some ideas.
- Be pet-friendly. This doesn’t mean that you have to accept a litter of puppies or a cat colony, but if you indicate that you’re open to pets, you’ll find your existing tenants are happier and your prospective tenants are more likely to rent from you.
- Provide the amenities and accommodations that tenants are looking for. This might be free parking, landscaping services included in the rent, or valet trash removal. When there are perks to living in your property, tenants are happier and feeling better about their relationship with you.
Technology is pretty huge right now, too. If you’re able to provide even a little bit of tech to your tenants, you’ll find your relationship improves dramatically. They’ll be thrilled.
Technology is quickly becoming one of the most sought-after amenities in the rental market. Tenants will always be looking for convenience and options, and right now they’re looking for smart home technology. It can be expensive, so we’re not suggesting that you provide an entire smart home. But, you can install a smart thermostat that keeps the home comfortable and the energy bills reasonable. You can also install a video doorbell so tenants can see who is at the front door before they open it. They can also track package delivery and feel safer at home.
Allow them to make suggestions for what they want, and be willing to consider them.
When you allow your tenants to make their rental property feel like a home, it’s going to work well for your relationship. If they want to activate a security system, help them get it installed. A lot more tenants are working and studying from home now than they were before. Make it easy for them to access reliable internet services. You likely do not include internet services in the rent, but make sure you’re providing the resources they need. Recommend local internet providers before tenants move in.
These are some of the ways we recommend you strengthen your tenant relationship. We’re very good at this, and we’d love to share more suggestions with you. Please contact us at Real Estate Gladiators. We serve owners and investors in Monroe, Issaquah, Bellevue, Everett, Lake Stevens, Kirkland and other cities in and around King and Snohomish counties in Washington State.
