"Helping" Tenants and Making Exceptions
Have you ever heard, "An appeaser is one who feeds a crocodile hoping it will eat them last." by Winston Churchill?
Landlord-ship can be a dangerous jungle and an experienced property manager can help you make it out not only unscathed but with a good experience to tell bout it.
Tenants... the word can run chills down the spines of those who have had unpleasant experiences with them. Tenants come in all shapes and sizes, but like water coming down a mountain they'll almost always take the easiest path. Not to say they are inherently bad, this is just human nature. Not all tenants are created equal, and good ones do exist, I've been one of them. So choose the best ones and treat them correctly and it can take you far with a pleasant experience for you both.
How do you know which tenants to choose? Good question, it's actually simple, but maybe not easy. This goes beyond choosing a tenant by their credit score, income and employment, even the richest most credit worthy people can end up being terrible tenants. Through it all, the way you behave with them will also lead them in how to behave with you.
Follow these rules to develop a good working relationship with your tenant as well as to see if they are really good to begin with:
1.) Don't "Help" applicants or tenants, they should be able to swim on their own. "Helping" includes making exceptions to rental application criteria, allowing tenants to pay security deposits in increments, giving them a break on the rent, or late fees, etc. This enables tenants and sets them up for failure, it also puts your landlord client at risk. Not only that, you may also create unintended Federal Fair Housing infractions. When you make one exception for a tenant, expect that to be the rule and to have to make one exceptions after another for the rest of the lease.
2.) This is a continuations of helping the tenant, but is a bit more detailed. We want tenants who read the lease, our emails and other instructions we send them, thoroughly. Tenants have a tremendous amount of responsibility beyond paying the rent. If a tenant is unable to follow simple application instructions or is unable to provide required items such as ID's, pay stubs, or refuses to follow our processes, this shows they aren't taking us or the transaction seriously. What will they do with the property?! We don't make exceptions, having to do this with vital parts of any of our processes is a sign of bad things to come. You wouldn't rent a car to someone who can't turn the car on or doesn't know how to drive or who refuses to follow the laws of the road, why would you entrust them with something worth much more than a car.
3.) "I pay my rent on time, I'm a good tenant!" This is usually the cry of a tenant who's been denied something they feel they are entitled to. Yes, tenants should pay the rent and on time, but sometimes tenants forget they agreed to pay the rent in return for specific performance on part of the landlord. The landlord provides a habitable property with functioning items per the lease. Fulfilling their agreed upon contract doesn't entitle tenants to do whatever they want, to not follow other rules or that they will receive special treatment. Discussing each party's expectations and obligations out in the open immediately is the best way to go and will ensure smooth sailing in the future.
4.) Be up front, say what you mean and mean what you say. Building trust is simple, but maybe not easy. If you follow all of your own rules you'll be surprised how well tenants follow them too. We inform tenants of their rights as well as their responsibilities. We also inform them of the landlord's and our office's obligations and what all of our roles are in the transaction. We always enforce late fees and do our best not to make any exceptions for any reason. This goes for tenants and our landlord clients alike.
5.) Finally, this one is for all the softies. I used to be one until I saw what my appeasing and soft ways got me and the poor tenant. In the end you'll have to deal with the tenants if they go bad. When it comes time to evict them you have to look back and ask yourself, could have I avoided this needless cost? The cost of eviction, of your time, of your energy? And of course the cost to your landlord client... Maybe, maybe not, sometimes you do everything right and things still end up sideways. But most of the time, had you not felt compelled to "help" the unemployed student with a co-signer, the person who is in desperate need of housing because of their lack of planning. These people exist and will tug a tune on your heart strings. If you really want to help them suggest a lower rent price or a different rental they are more qualified for.
(Some exceptions or more appropriately accommodations for elderly, disabled, or other protected individuals are very much encouraged, this list is not meant to include these protected classes.)
I hope this helps you on your journey through landlord-ship, it can be rewarding to you if you do it right. So set you and your tenant up for success!