Put a Bounty on Their Head

[Anthony R.]

So I picked up a 4 unit building in a lower income area earlier this year. I had some significant challenges when I took it over, (see https://www.biggerpockets.com/forums/223/topics/617743-shameless-self-pat-on-the-back) for more info.

I always like taking on challenges like this. I see self-managing rental properties as the ultimate in leadership challenges. It’s a true test of your metal when you can’t bark orders. You can’t threaten penalties all the time or they get numb to it. You need to think critically about how to inspire tenants to want to follow your lead.

One tool I wanted to share with the community that I’ve been using this year and that I’ve seen success with is my bounty program.

It’s hard for me to constantly be policing units that are 30+ min away each and every day. So what I do is I tell the tenants that if they catch another tenant doing something that is blatantly against the lease;

• Throwing trash on the ground,
• Not disposing of cigarettes in appropriate areas,
• Destruction of property, etc;

I tell them to get a photo and or video of it and send it to me. If I can confirm it then I give them a discount off their next month’s rent.

So far no discounts have been needed to be given but I have noticed a complete stop to the shenanigans that were taking place when I first took the building over. I think the thought that the other tenants are keeping an eye on them discourages foolishness.

What are your thoughts BP?