Long term tenants

[Christine Swaidan]

We have a 70 unit senior building that we have owned for the last 20 years. These are all low income and about 20 have section 8 assistance. Rents are low. I would have to say we have not done a great job managing these units with regard to maintenance and keeping up with rent increases over the years but I am trying to change that fact the last 2 years.

For many, this is the last stop. They are comfortable here, the rent is low, and they are not ever going to move.

For the past year, when there is a turnover we go in and rehab and raise the rent. That means we have a few really nice units with some tenants paying more $$. The difference between existing and new tenants is $100-175. The rent is still on the low side but we are taking into account that these are low income and we want to maintain our no vacancy status. Cost of rehab is between $6-7ooo.

Besides increasing rents at turnovers, I went through and gave everyone a $20-25 rate increase who had been there at least 2 years without an increase.This was over half of the units.

Here’s my dilemma. One of the long term tenants got his first rent raise ($25) in 11 ½ years and now wants to address some issues in his apartment. He wants a new toilet which I have okayed because he had a 3 ½ GPF. There is a small wrinkle in his carpet on the far side of his bed that I will ask the carpet guy to stretch. The carpet was new when he moved in (and very cheap!) and surprisingly still looks decent.But he would like us to replace the kitchen linoleum which was peel and stick and also paint the kitchen walls.He’s a very clean person and there are just some cooking splatters that are not cleanable. Honestly, I would not have a problem doing all the work—great tenant. I’m just afraid this is opening up a can of worms. We have sixty more tenants that will probably want similar upgrades. I asked him if he would want to move to a refurbished unit (and pay the going rate) but he says he likes his location.

Just when I think we’re going to start socking away a ton of money I see the dollars flying out the window.I know we are lucky to have the long term tenants. How do I keep them happy without going broke?

[Marcia Maynard]

We love renting to seniors. We to cater to low-income and fixed-income folks. We find they can usually can handle a rent increase of $30 at a time (equates to $1 a day). Unfortunately this year social security did not even give a cost of living adjustment (COLA) and some have had their pensions go down. These are hard times for many in their golden years who have worked hard all their lives and are good people. 

Interestingly, it's easiest for us to raise rent on our Section 8 tenants because usually S8 will pick up the difference and the tenant's portion often doesn't change, or if it does, by very little. The key here is the timing of the rent raise notice so it coincides with their annual income review.

We're aware of the changing needs of our senior tenants and try to stay ahead of it. For safety, we offer a few modifications even before they ask. These include changing the toilets to "high boy" (chair height/ADA) and bathroom safety rails. We change their lightbulbs too. :-)  Many of our upgrades can be paid for by social service programs, if the tenant qualifies and we ask.

Senior Fairs occur in many cities and offer an opportunity to learn about new ways to enhance the health and well being of seniors. I like to go to these and smooze agencies that can help me help our tenants.

Not all tenants have the same needs or desires, so what you do for one tenant does not necessarily need to be done for others. As a landlord, we're required to properly maintain our units to keep them up to habitability standards. If an issue becomes a health and safety matter, then the landlord should address it. Cosmetic only changes are not something a landlord is obligated to do. However, if you want to do a cosmetic upgrade for a tenant, tie it to good performance. It's possible to do this for one tenant and not another without running afoul of Fair Housing laws. 

It's rewarding to be in a position where we can make a positive difference in the lives of other people. They are often so grateful and do take pride in the place where they live. And like one of our senior tenants noted... "I love this place. I love you guys. I'm gonna stay here till I die!".... he's been with us 24+ years. :-)