A happy tenant is a longstanding tenant…

and a longstanding tenant can mean peace of mind, financial stability, and a well-maintained property for you! Your tenants are an important part of your path to an income-producing, passive investment. There’s a formula to making sure your tenants are happy and it starts with making sure they are safe, well-cared for, and heard.

Go above and beyond with communication

Whether you are self-managing or are in business with a property management company, you want to make sure that the lines of communication are always open with your tenants. If a tenant is making a request, it is reasonable for them to expect a short turnaround time before they are responded to. I believe a 24-hour response time is acceptable, barring any major issues — like a fire or serious water leak. Now I certainly don’t suggest that the repair is handled in that time frame, I am just noting that you need to acknowledge that you received their request.

Regardless if it’s a serious maintenance issue or a question regarding their lease — you have a responsibility to let your tenants know that their concerns are heard. Aside from this being good customer service, it could make financial sense for you, too. If your tenant feels you are responsive to their requests or concerns, they will be more apt to contact you when something serious does arise — which could save you time, money, and frustration. This is also a proven reason why a tenant would renew their lease - year after year.

Maintenance requests should be fixed in a timely manner — this makes sense financially and it keeps your building safe from additional damages. Deferring maintenance or not responding to requests will send a clear message to your tenants: you don’t care about your property, so why should they? I have seen time and time again if you give a tenant a beautiful, well kept property- they will also keep it nice. If you give a tenant a dump to live in- they treat it as the same.

Work with them during hard times

If you have a long-standing, good tenant, work with them if they are going through a hardship. Even tenants that have been consistently in good standing can experience a hardship; in those circumstances, try to work with the tenant, especially if they have been long term tenants with a proven history of excellent tenancy.

If the pandemic taught us anything, it’s that things can change at a moment’s notice. Losing a job or falling ill could happen to any of one us, so if you know this tenant to be honest, work with them by setting up payment plans or a system that works for you. Financially, it might not make sense to kick a tenant out over non-payment if you know their circumstances will eventually change and they will make the back payments. The cost of turnover for a tenant that’s been there a long time — even if they do keep the property nice — is going to be expensive. Think about all the financial factors before making a decision.

Educate your tenants

Educating tenants on the terms of their lease from the beginning can save a lot of confusion in the future. Make sure that all sections of the lease are reviewed by the tenant and encourage them to ask any questions. By doing this, you are setting expectations early and your tenant will have a a clear understanding of the rules that apply.

For example, in my leases I always draft a section about the potential results of the property being sold. The lease states, first, that the owner has the right to sell the property at any time, regardless of the occupancy status. Additionally, should an owner-occupant want to occupy the unit after purchasing the property, the tenant’s lease is terminated and the tenant will be provided a 30-day notice to move. It’s really important that our tenants understand that this could happen at anytime. By educating them from the start, it’s prevents tenants from feeling blindsided when a new buyer wants to move in. If a tenant feels misinformed, or duped, they could act out and damage the property, so clear lease terms from the beginning will be beneficial to both parties.

don’t ignore long-term tenants requests

If a longstanding tenant comes to you asking for unit upgrades, please take the time to consider. Fresh paint, an appliance swap, and small cosmetic improvements can absolutely make your tenant happier. Most times, good tenants who want to alter the property actually improve the property; sometimes, it does not even cost you, because they opt to do the work themselves if you pay for the materials. Allowing your tenants to spruce up the yard or make minor, reversible, alterations is a win-win for you and them. It keeps the relationship positive, and they feel good about the home they live in. Tenants that take pride in where they live are golden- don’t forget that!

Pets produce happiness!

As we’ve talked about in other Advisor Guide articles, there’s a number of pros and cons to allowing pets. Potential pet-caused damage may deter you, while the extra monthly income associated with the fee should encourage you. All those points aside, our pets literally make us happier. They bring us joy and love and allowing these furry family members to be by your tenant’s side will definitely help keep them happy.

Respect goes a long way

Being communicative with tenants is part of the broader picture: respect. Whether it’s keeping them up-to-date with their requests or answering them in a timely manner, it shows them that you respect them and your business relationship. Additionally, even though you own the property and you reserve the right to enter whenever, respect their space. Giving tenants at least 24-hour notice is more than fair on both sides.

Owning and managing a rental property is, in fact, a business…remember that within this business, you are dealing with people and their homes. Consider this fact when communicating with them about their requests. This is the space where they sleep at night, spend their holidays with their families, and watch their children grow up.

I have spent the last 12 years gathering data and facts on tenancy and improving the overall relationship between Landlords and Tenants. These analytics help us educate and guide our landlords toward successful long term occupancy which is the #1 factor in profitability. I hope you can take something useful from this article to improve your rental business and your tenant relations!

This information may not be used as a substitute for legal advice and you should consult your attorney for legal advice if you have any questions relating to this advisor guide.