What to say or not to say, to tenants?

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What to say or not to say, to tenants?

Travis Oakes
Bristol, CT · Member since 2020 · 41 posts · 18 votes

Hey BP!! Closing on my first rental property, house hack, soon! I have a few questions about next steps.

How should I introduce myself to the tenants?

Should I send a letter, phone call, in person or all? What should I say?

If they have any problems/need repairs in unit, how should I have them report issues?

What if there’s a possibility that tenants are not tech savvy, how to take rent?

I’m sure there’s more questions lmao

I love to learn from others and their experiences. I’m looking forward to great feedback and I thank you all in advance!! Happy investing!

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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
5y

We don't recommend introducing yourself as the owner! Please tell us ONE good thing that comes of that besides an ego stroke:)

We recommend an intro as the property manager - which you technically are. This creates a buffer between the tenant and the owner, allowing you to take time to mull over complaints and requests and decide the best course of action. As opposed to the tenant putting you on the spot demanding an answer NOW - which may cause you to make a bad decision.

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  • Filipe Pereira
    Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    Hey @Travis Oakes, congratulations on getting your first one! It only gets easier from here.

    I typically introduce myself in person and leave a letter behind with general Information, such as how to reach me, how to report a maintenance issue, where they can send the rent, etc.

    It's probably easiest for them to just send you a text or email regarding issues given the volume of units you have. If your goal is to do this at scale, think about implementing some sort of system such as a Google form. You can see an example of this on the tenant portal section of our property management website, linked below. If you need help setting up something similar, just reach out. I am happy to help.

    If they are not text savvy, have them mail rent to a PO Box in your town if you're not comfortable with them dropping it off in your mailbox. If you know that you only plan on living there for a year, start training them to mail it in now. It will make your life easier during the transition, or that of the property manager should you go that route in the future.

    I’m an open book, ask away. Is your property in Terryville, CT? 

    4Reply
  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    5y

    I usually stick very close to the lease and Appfolio is a great piece of software for management.

    4Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    5y

    We don't recommend introducing yourself as the owner! Please tell us ONE good thing that comes of that besides an ego stroke:)

    We recommend an intro as the property manager - which you technically are. This creates a buffer between the tenant and the owner, allowing you to take time to mull over complaints and requests and decide the best course of action. As opposed to the tenant putting you on the spot demanding an answer NOW - which may cause you to make a bad decision.

    [email protected]248-209-6824
    Logical Property Management4.9460 Reviews
    WebsiteView Page
    14Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y

    A short, simple letter letting them know you are the owner. Include instructions for paying rent, reporting maintenance issues, etc. This is also an excellent opportunity to set some boundaries! Whether you live on the property or not, they need to know there is a difference a personal relationship and a business relationship. Any communication regarding maintenance, rent, changes to the lease, or other rental-related topics should be in writing. If they want to chit-chat about their car or vacation or personal issues, there's nothing wrong with being friendly. But if they try talking to you about the rental, make it clear that is a business conversation and they should present it in writing and you will address it as the Landlord.

    The DIY Landlord Book4.7247 Reviews
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    9Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    5y
    Originally posted by @Drew Sygit:

    We don't recommend introducing yourself as the owner! Please tell us ONE good thing that comes of that besides an ego stroke:)

    We recommend an intro as the property manager - which you technically are. This creates a buffer between the tenant and the owner, allowing you to take time to mull over complaints and requests and decide the best course of action. As opposed to the tenant putting you on the spot demanding an answer NOW - which may cause you to make a bad decision.

     Tell me one good thing that comes from lying to people? They will find out you are the owner and telling them you are the property manager comes off deceptive. How do you expect tenants to tell you the truth if you are lying to them? 

    The majority of the time people hide behind the property manager title because they have trouble saying no. They would prefer to blame the owner, so they can be the "nice guy". This comes out of a need to be liked by everyone. The reality is that as a landlord, you are not here to make friends. The problem here is mindset, not ego.

    You don't need to mull over complaints and requests if you have policies and procedures, which you should have regardless of how you introduce yourself. Ask for requests in writing and let them know response is in writing. You don't have to respond immediately, but if you know the answer you can respond right away. If the answer is no, then respond quickly no. If you are pressured for an answer, say no. It is easy to come back later and change a no to a yes. 

    I know as a new landlord it is scary to be forced into thinking on the fly, but learning this skill is essential. 

    14Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    5y

    @Joe Splitrock Telling a tenant you are their property manager is 100% the truth. 

    Please don't imply that we are recommending lying.

    We don't have a problem with your opinion otherwise.

    [email protected]248-209-6824
    Logical Property Management4.9460 Reviews
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    2Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    5y
    Originally posted by @Drew Sygit:

    @Joe Splitrock Telling a tenant you are their property manager is 100% the truth. 

    Please don't imply that we are recommending lying.

    We don't have a problem with your opinion otherwise.

     

    It is lying by omission. That is when you intentionally leave out important facts to foster a misconception. In this case you are intentionally trying to lead them to believe you are not the owner. 

    The poster said they are house hacking, which means they live in the property. They likely have a conventional mortgage. which means the property is held in their personal name and is a matter of public record. Lease documents will need to show their name as the owner. It is going to come out that they are the owner, so there is no reason to hide it is all I am saying. 

    10Reply
  • Marlen Weber
    Specialist · Plano, TX · Member since 2020 · 2k+ posts · 861 votes
    5y

    That's amazing, @Travis Oakes. Congratulations on closing your first rental property soon. 

    1Reply
  • Travis Oakes
    OP
    Bristol, CT · Member since 2020 · 41 posts · 18 votes
    5y

    @Drew Sygit I like this too and I thought of this. But does it make sense to still use property manager if I’m living there?

    0Reply
  • Travis Oakes
    OP
    Bristol, CT · Member since 2020 · 41 posts · 18 votes
    5y

    @Nathan G. Great idea! Have tenants write the repair on any piece of paper?

    1Reply
  • Travis Oakes
    OP
    Bristol, CT · Member since 2020 · 41 posts · 18 votes
    5y

    @Joe Splitrock great point. Owner and property manager I am. Any repairs need to be hand written and signed, responses will also be written down and signed. Be friendly but when it comes down to property concerns or discussions be a firm landlord. I got this! Love the input and replies from everyone! Keep it positive! What else can I use from you all?? Great job and love the feedback!!

    2Reply
  • Travis Oakes
    OP
    Bristol, CT · Member since 2020 · 41 posts · 18 votes
    5y

    @Marlen Weber awesome!! Thank you!!!

    1Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y
    Originally posted by @Travis Oakes:

    @Nathan G. Great idea! Have tenants write the repair on any piece of paper?

    you could create a very simple form and provide them some copies. I personally would prefer email so it's easy for them to turn in, easy for you to retrieve, and you have a digital copy for future reference.

    The DIY Landlord Book4.7247 Reviews
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    1Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    5y
    Originally posted by @Nathan Gesner:
    Originally posted by @Travis Oakes:

    @Nathan G. Great idea! Have tenants write the repair on any piece of paper?

    you could create a very simple form and provide them some copies. I personally would prefer email so it's easy for them to turn in, easy for you to retrieve, and you have a digital copy for future reference.

     Digital is the way to go for everything. Google forms are amazing for this. 

    1Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    5y

    @Travis Oakes We are managing a 4-unit right now that the owner lives in one of the units, but doesn't want to deal with tenants. So, they hired us and the other 3 tenants are none the wiser:)

    [email protected]248-209-6824
    Logical Property Management4.9460 Reviews
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    1Reply
  • Greg WeikBusiness Member
    Property Manager · Denver, CO · Member since 2020 · 263 posts · 327 votes
    5y

    @Travis Oakes, one of my employees at my property management company has done exactly this, the house hack. He bought his first home pretty young (23 maybe?) and immediately started renting out the rooms.  

    Lucky for him, he works at our company and understands the need for clear policy and procedure and getting everything in writing. 

    My advice is to require rent to be paid online - or Venmo - and to not accept paper money.  Create an introductory letter that's friendly but firm.  Let people know this is a business for you and that you have to hold everyone to their written agreements, no matter what. 

    Collect security deposits.  This part cannot be overstated.  

    Determine how you're going to address damage to common areas.  Determine how you're going to track ordinary wear and tear in the non-common area they are renting. 

    I suggest covering utilities; there will never be an even split.  Keep it simple. 

    Good luck!  My employee has had a lot of success with this and made some new friends.  

    As other posters have stated, always be honest and transparent.  None of this "I'm the property manager" BS.  It's your house and you're offsetting your ownership costs while providing a place to live.  No need to hide that.  

    Last thing, your lease.  You have to decide if you want to commit to 12 months with people that you're living with (who you may end up severely disliking) or starting everyone off on a m2m (which I recommend.)  

    303-586-5560
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    2Reply
  • Anthony Marin
    Rental Property Investor · Newark, NJ · Member since 2017 · 88 posts · 75 votes
    5y

    @Travis Oakes Congrats on getting your first one!!!  We'll take these one at a time.

    How should I introduce myself to the tenants?  I am a big fan of in person introductions, with covid ifs difficult but under normal circumstances I like in person.  I like to see how they react when we discuss the new management guidelines.

    Should I send a letter, phone call, in person or all? What should I say?  Go over the basics initially, you don't want to overwhelm them too soon.  How to pay rent, dates to pay, late fees and how to put in maintenance requests.

    If they have any problems/need repairs in unit, how should I have them report issues?  Give them your contact info or the contact info of who will be taking care of the issue.  Let them know they will be taken care of in order from highest priorities to lowest.  Also let them know you may not be able to afford everything now but you will do your best to take care of everything.  This let's them know you're not rich.  Tenants always think the owner is loaded.

    What if there’s a possibility that tenants are not tech savvy, how to take rent?  In my opinion you have to work with them at their level with this.  The most important thing is to collect, be flexible initially then work to show them a more efficient way that works for you.

    Good Luck!!

    1Reply
  • Bill P.
    Investor | Syndicator | Instructor · Cincinnati, OH · Member since 2008 · 435 posts · 198 votes
    5y

    @Travis Oakes Take a look at rentredi for a solution to your issues

    1Reply
  • Peter Schafer
    Member since 2020 · 34 posts · 13 votes
    5y

    @Travis Oakes I always prefer to never speak to tenants. Just not my style. Plus I have a property manager with great people skills so it works out for the better

    1Reply
  • Travis Oakes
    OP
    Bristol, CT · Member since 2020 · 41 posts · 18 votes
    5y

    @Filipe Pereira

    Thanks so much for the response! Email would be great, make a new email account just for this property?? My property will be in Bristol.

    I’m sure I have many more questions soon! I’ll keep in touch with you!

    0Reply
  • Filipe Pereira
    Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    Hey @Travis Oakes, you're welcome.

    Keep in mind that real estate is local, and in some regards personal. That is to say what works for some people in some areas may not work for you in your area. When I first bought my for family at 22, and I was introducing myself as a landlord to people twice my age, I went with the truth and told them that I was the owner. I wanted them to know that the buck stops with me. My concern was that if I told them I was “just” the property manager, they might try to bully me, thinking that I did not have the final say. I wanted none of that.

    Don't be overwhelmed by the number and spectrum of responses here. You will find what works for you, even if it's not right away. Best of luck, and if you need something just know that there's a lot of great real estate mines in Bristol and the surrounding towns that would be happy to serve as a sounding board, myself included.

    3Reply
  • Arta Montero
    Member since 2019 · 182 posts · 45 votes
    5y

    @Greg Weik wondering why you recommend month to month vs 12 month lease?

    0Reply
  • Account Closed
    San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    5y
    Originally posted by @Arta Montero:

    @Greg Weik wondering why you recommend month to month vs 12 month lease?

     I used M2M agreements because I could get rid of a problem tenant with usually just 30 days notice.  A lease gives the tenant all the power - they break a lease if they need to, but it's really hard for you to kick them out until the lease term is up.  Tenants who want to leave, will leave, regardless of having a lease, with very few exceptions.  Might as well keep the power to kick them out.  That way their "no, this isn't our dog...what dog?" "I don't smoke, what smoke smell?" "what boyfriend? nobody moved in who's not on the lease" only works for one more month.

    2Reply
  • E.S. Burrell
    Rental Property Investor · MI · Member since 2019 · 192 posts · 205 votes
    5y

    @Travis Oakes Congratulations!

    As the old saying goes, “If it’s not in writing, it didn’t happen.” Get everything in writing. Especially maintenance requests.

    Communicate/ respond to tenants in a timely manner. Be trustworthy. Be reliable. Introduce yourself by letter and keep it sweet and simple.

    I personally accept all means of payment except cash. Two of my Tenants pay by check and money order. Others rather use cash app; my rentals are SFH so I use a PO Box for all my business affairs. Wishing you the best!

    2Reply
  • Michael Noto
    Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    5y

    @Travis Oakes Congrats on the purchase. I actually have a client closing on a house hack right next door in Bristol CT next week and he asked me the same questions yesterday and it is a good one. 

    This is what I recommended he do:

    - Just slip a letter in their mailbox letting the tenants know the property has changed ownership. Keep it general and short

    - In the letter give them the options by which they can contact you for maintenance issues and specify your preference. For instance "email is preferred for non-emergency situations and for emergencies call me at ______"

    - In the letter outline the different ways you collect rent. You are in the business of getting paid rent so if a tenant isn't tech savvy just set up another mailbox at the property for them to drop the rent in since you will be living there anyway. 

    1Reply
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