Customer Service as a Standard

[John Sanderson]

All too often I get the feeling that most here on Bigger Pockets operate under the terms "It's my way, or the highway". What most, in my opinion, fail to realize is that as a property owner, you are providing a service to a customer, and as such, must be in a customer service oriented mindset. It seems that it's standard, that if a tenant doesn't pay by the 5th(or whatever grace period is required by your state or country, if any) that tenant needs to get out. In my experience, my tenants are human, they pay late sometimes and are short on money sometimes.

As a property owner, it's your responsibility to send them notices that they need to pay, not only does this protect you, but it protects your customer, your tenant. When I send a notice to Pay or Quit, I tell my tenants it's similar to a late notice from the cable company. It's not a threat, it's just a means of getting them to pay before I take more serious action. I don't like evicting tenants, nor do I go out of my way to do it, which I imagine most here would agree with. I have multiple tenants that pay Bi-monthly(it's written into the lease) and I have to send the occasional Pay or Quit notice, but as of right now, I collect 100% rent owed to me, and I haven't had to turnover a property due to lack of payment since one of my first inherited tenants failed to pay.

There will always be bad tenants, and there will always be fantastic tenants, but most of us will find, OK tenants, and it's my belief that it's your duty as a property owner to try and work with OK tenants. We're all human, and in my experience, most people make an effort to pay their debts, it's just sometimes they need to be given a nudge, which is fine in my book. Any thoughts and insights are appreciated.

[Thomas S.]

I firmly believe that the lease is a contractual agreement that must be respected on both sides. It is a two way street that has rules and regulations. The pay or quit notice is only that, as you say, it is a notice that is required to be issued the day after rent is due. Timing has nothing to do with the state "grace period". The grace period refers to the triggering of late fees. It is not a indication of when rent is officially late. The notice also protects the landlords time line in the event further action is required. The clock does not start till the notice is given which is why it should always be given immediately upon not receiving  payment IN FULL.

The notice is the only "nudge" that a landlord should ever give a tenant.

Tenants do occasional pay late and are short. Paying late by accident or mistake happens....once. Paying late because they are short is never acceptable. Paying late because they are short is a tenant prioritising "other" financial responsibilities ahead of their commitment to their landlord. That is disrespectful and a blatant violation of their lease contract. It should never be tolerated by any landlord. We are not our tenants bank and they are not permitted to borrow our money for any reason.

I believe it is a responsible landlords obligation to train all tenants to be good tenants. Good tenants place rent payment on time as their number one priority.  

 Having vaguely defined and loosely enforced rules is a recipe for failure. I do not like th econcept of tennats being customers. Customers rarely have contracts.