NUTS & BOLTS
TENANT RETENTION
properties tend to become cynical. It’s natural. Not all tenants are the right tenants for you, and you must develop thick skin in order to deal with the daily “grind” of maintaining profitable long-term investments. However, there are some simple things you can do to establish a warm relationship with a tenant with- out being taken advantage of. Think about the last time you went shopping. Will you return to the store where the sales clerk asked your name and genuinely cared about helping you or the one where you were treated like a dollar sign? Probably the former, because they treated you like a person rather than a sale. Warm, thoughtful interactions are important! When you deal with your tenants and contractors the same rules apply. Pay attention to the details: • DID YOU NOTICE ONE OF YOUR TENANTS HAS A CUBS POSTER ON MOVE IN? The next time you see them, ask them about the team this year. These things are so small. Seemingly insignificant. However, if you want to build a rental empire you need a solid team behind you, good tenant retention, and on-time rent payments. You can overlook those little things for a while and still find success, no doubt, but at the end of the day how you treat people matters. Are you a true pro or just squeaking by? I think most landlords and property managers would agree with me that dealing with rentals is kind of like running a marathon. We’re the professional athletes of real estate! Truly successful pro athletes win by working incredibly hard and demonstrating they care about their profession and their fans. Think of the very definition of star player, Michael Jordan. Everyone knows who he is. But have you heard of Joe Barry Carroll? Probably not. He was the number one draft pick for the Golden State Warriors in 1980. They traded away a great player and a future Hall of Famer draft pick to get him. Unfortunately, he demonstrated such a lack of interest in the game that he earned the nickname “Joe Barely Cares.” That wasn’t such a winning strategy for him, and now hardly any- one even knows who he is. The small things will make you an all-star landlord or property manager to your tenants. That is what will make a difference in whether you just get by or become a true all-star investor. When you’re out looking for a distressed property, don’t treat the owner like they are just part of your • DID YOUR MAINTENANCE MAN MENTION HIS BIRTHDAY COMING UP? Remember that, and wish him a happy birthday.
business. Apply this rule to tenant relations as well: If your millennial son or daughter texted you, you’d respond to let them know you’d heard from them, right? Millennial ten- ants (really, just about every tenant these days) require and deserve the same type of response. It is easy and only takes 30 seconds or so to send a quick text. Take a look at the way you treat your clients and your family. If you are not treating your tenants, colleagues, and co-workers the same way, reevaluate. You don’t have to take everyone out to dinner and drinks on Friday or let people run over you. Just do the little things and you’ll soon experience big payoffs. After all, you want to be the Michael Jordan of real estate, not the Joe Barely Cares. •
Jenna Heneghan is the director of business development at Secure Pay One MLH. She may be reached at jennaheneghan@gmail.com.
How to Keep Good Tenants Forever LITTLE THINGS MAKE A BIG DIFFERENCE FOR TENANT RETENTION.
by Jenna Heneghan
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Think you don’t have time for this “strategy” of focusing on the little things? Think it doesn’t matter because your units are in such high demand? Think again. Sure, at first you can get by on that gorgeous view or that short commute. “Shiny object syndrome” is definitely part of our culture today and a lot of tenants will not even notice your demeanor at first because they are so excited about landing in one of your beautiful properties. But what about after a few months go by? If you’re not doing what you can to show your tenant appreciation, they are far more likely to not renew their lease (or not make the effort to pay on time) and you will start to have trouble you didn’t see coming. Despite the constant distractions today, every person notices even- tually how they are treated and responds, usually in kind. But how do you get that “loving feeling” while keeping an eye on your bottom line?
eople care about the little things. In business and in life, the small, seemingly insignificant things always add up. It’s certainly true in real estate, especially when you’re talking property management! People will notice those little things, from the details on your lease to the way you open a door when showing your unit, and they will respond in kind. In a time where more people are renting than not, what are you doing to set yourself and your business apart? It all starts with what I like to think of as “the human factor,” the basic way you treat people. Some property managers and landlords overlook the human factor. Investors are encouraged not to get emotionally involved with deals, and that can make us a little distant, a little “hard.” This is a particularly big deal for landlords and property managers who will have a long-term relationship with their tenants. You will find it is easier to keep your units occupied and cash-flowing by making a few small changes to your routine when interacting not just with tenants but with everyone who works on and in your properties.
Over time, a lot of real estate investors who buy and hold
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