Sit down meeting with tenant
I received a text message from one of my tenants on Friday asking for a meeting with me on Saturday. So we arranged for a time. I was wondering if they were going to leave which would be unfortunate since they are long-term tenants and had just signed a new year's lease. These tenants have been with me since I bought the building over 2 years ago. For "inherited tenants" they turned out to be great. They live in a duplex, and take care of the yard care really well.
What it turned out was that they explained that they have had a little financial problem and wanted split their rent payments into twice a month based on their paychecks for the next 3 months. The split wouldn't be 50/50, it would be 75/25.
They also explained that when their lease came due, they did look around for something else but re-signed with us for a few reasons:
a) They really like where they live and are comfortable there since they've been there about 5 years.
b) They like the neighborhood and the school the kids go to.
c) They looked at what else is out there and nothing else compares in quality for the price to what they are in now.
This did make me feel good that this is the second time in the same year I've had existing tenants go to look at what else is out there and not want to leave because what else is out there isn't as high quality. It makes me want to go out to other places and see what the competition is like for myself.
Here are the lessons I want to depart:
- I think tenant retention is very important because vacancy costs a lot of money.
- If you have good tenants, you don't want to trade them in for someone that might not turn out to be as good.
- Keep your rentals high-quality and you will get high-quality tenants.
- Ensure you're not living rent check to rent check to make your mortgage. If a situation like the above happened to some landlords, I don't know if they'd be able to make it.
- Be a little flexible with your tenants. Sometimes life happens. In this case, the tenant asked to arrange the meeting and it wasn't as though they were hiding something.
Comments (9)
It also may mean your rents are a bit low.
Jeff J., about 10 years ago
I love it! The slumlords can't take away your good tenants, never will! I think you just gave me my new slogan, "High quality homes for high quality tenants!" That's my value proposition and my competitive advantage to get the best renters out there! Your tenants are pretty awesome. They were proactive and they came to you with a solution for their problem that made sense! I would've done the same thing for my long term reliable tenants.
Robert Leonard, over 10 years ago
And they paid the 2nd installment in December last week so we're good.
Dawn Anastasi, over 10 years ago
Wish My old land lord was like that!!
Billy Hills, over 10 years ago
Just wanted to update the thread that the tenant has paid as agreed for both October and November.
Dawn Anastasi, over 10 years ago
Totally agree. I have worked with good tenants in the past, taking payments on payday even if spread over two paydays, rather than lose a good tenant, as long as they don't start falling behind. If a bank will let me pay bi-monthly, I see no good reason not to pass it on. Keep up the good work! (Link is not working)
Charles Morgan, over 10 years ago
All good points @Dawn. I think that it is good to work with good established residents that talk to you BEFORE they have the issue. Since they approached you and you worked out a plan I wouldn't charge any fee as long as they make the 2nd payment when they agreed to.
Shaun Reilly, over 10 years ago
All good points @Dawn. I think that it is good to work with good established residents that talk to you BEFORE they have the issue. Since they approached you and you worked out a plan I wouldn't charge any fee as long as they make the 2nd payment when they agreed to.
Shaun Reilly, over 10 years ago
I think the fact that they approached you versus waiting for you to come to them gives them some extra credibility. I've seen from others though that you may want to charge the late fee. Otherwise there is no incentive to pay on time.
Chris Haas, over 10 years ago