Tenant Training

[Renee R.]

I’ve seen many posts here on BP that mention training your tenants. Although I seen tips here and there, I haven’t seen any training doc or lists. Since I just closed on my first unit (yay!), with inherited tenants, I’m hoping I’m on the right path. Here’s what I’ve done so far:

• Sent a certified letter summarizing key points in the lease, particularly around rent (when due, where to send, acceptable forms of payment, late payments), security deposit, appliance ownership.

• Visited tenants to meet them and inspect the unit. Positioned the visit as to their benefit so they won’t be held accountable for any damage in place when they moved in. Took photos of a few dings to document unit’s condition.

• Asked if they have any concerns—and arranged to have a drain issue fixed.

• Brought cleaner, microcloths and care instructions for granite counter tops that the prior owner had (unfortunately) just installed. Yes, they look fantastic, but granite is not a good choice for rentals.

• Gave a $25 bank gift card as a welcome gift.

• Brought key docs that I had spiral bound to give the impression of important docs (which, of course, they are). This included the lease, association rule and regs, and contact info, including who to call when and things the tenant should not call about because they are responsible.

Going forward, I will follow up immediately if rent is ever late. And, I intend to be responsive to any issues that might come up. Any other suggestions for what I should do are welcome!

[Renee R.]

I find it puzzling that some read into my post that I am trying to develop a personal relationship. That’s quite a leap. I am clear that business is business. To clarify, here’s why I did what I did:

• My first point is a legal requirement in New Hampshire.

• My second point was to complete the post-purchase inspection and make sure the tenants know what to do going forward.

• My third point was to take care of any issues; the tenants had moved in just the month before. The drain was a mechanical issue, not a clog. In my book, any tenant paying $1,300/month should not have to live with an annoyance that is an easy fix.

• My fourth point was to ensure they had the right tools to clean the granite properly so it doesn’t get damaged.

• My fifth point was a token gift to show my appreciation for them being good tenants—banking goodwill.

• My sixth point was to make sure they know I’m aware of the terms of the lease and the rules.

Although I do use a PO Box, a simple Google search would turn up my physical address in a second. An LLC doesn’t hide your ID either.

Lying to my tenants about who I am will NEVER be a part of my REI policy. Dishonesty breeds dishonesty. I want them to be aware that if they don’t pay their rent or trash the apartment, it’s ME they’re screwing—a regular person. Besides, I got into REI knowing you have to have the balls to be upfront with your tenant about what you will/will not do, not hide behind some Oz-behind-the-curtain.

Someone mentioned the ‘class’ of tenants. Pardon my gagging, but, FWIW, in my experience in the financial services industry, it’s usually the so-called ‘higher class’ clients that have a misguided sense of entitlement and need to have their expectations realigned.

I’m sure I have a lot to learn, and my real test will come if I ever inherit a lousy tenant. Still, I believe honesty and clear, firm communications will be the approach that works for me.