Robert Cialdini is one of the leading experts on influence and persuasion. Below are 5 principles from his book The Psychology of Persuasion and how you can use them to be a more effective landlord.
Download Your FREE copy of ‘How to Rent Your House!
Renting your house is a great way to enter the world of real estate investing, but most first-timers (understandably) have a lot of questions. Fortunately, the experts at BiggerPockets have put together a complimentary guide on ‘How to Rent Your House’. All the skills, tools, and confidence you need to successfully rent your house are just a mouse-click away.
Have you ever had someone you just met do something nice for you for no reason at all? What are you going to do later when they ask you for a favor? Feel good about helping them, right? Research shows that reciprocity is one of the most important factors in influence.
When you get a new tenant you start the relationship with a power dynamic. They see you as an authority figure. In these situations they look to set the tone for the relationship. The best way to get off on the right foot is to do something nice for them that they don’t expect.
A week after moving in, give them a call and ask how they are doing and if they need anything. They will almost always say no but appreciate that you’re the only landlord to care enough to ask. Send them a birthday/christmas card or even a thank you for renting from you card. How many times have you received anything from your landlord except a bill? If you care about them, they will be influenced by reciprocity to care about you.
When you start a new relationship, you have to set the stage with rules. If they think they can do something, then why wouldn’t they? Everyone has different expectations of what’s acceptable. If you tell an adult after they do something that they aren’t allowed to do it, you just create more problems.
You’ll want to put the rules in the lease as a separate page titled “House Rules.” Make sure they have to sign the page stating that they have read and agree to the rules. This will weed out all of the people you don’t want and make it more likely they will follow them because they made a written commitment.
Think back on the recent commercials you’ve seen. How much of the commercial is dedicated to the product itself and how much is dedicated to people smiling about it? Commercials focus on social proof, or convincing you that you should like it because the pretty people in the commercial like it. People follow what other people do and believe.
The only way to get social proof for your rental is to get online reviews. There are numerous third party websites you can use so just pick one and stay with it. When you get great reviews, put a few in your ad with a link to see more.
The first impression you make is the most important determinant of how things are going to go in the future. You want to get them to like you right away.
The first way to do that is to dress and act professionally. That’s the first thing they will notice. The second thing you need to do is make them like you.
Have you ever gone out and had someone you don’t know be interested in you and ask you questions about yourself? It feels great, and you like them almost instantly. You can easily be that person by asking questions about these four topics.
F – Family
O – Occupation
R – Recreation
D – Dreams
If you really want to be a powerhouse, ask a simple question about one of the topics above and then based on their answer, ask two more about the same topic with each going more into depth. I like to call it “3 deep questioning.”
You: What is that you do for a living?
Them: I teach 8th grade math.
You: Wow. What was it that got you passionate about teaching?
Them: I love working with teenagers and trying to help them succeed in life.
You: What is the most important thing you teach them that helps them succeed?
You want to build a relationship first and get to know them before getting to business. It’s easier to do business when someone likes you anyway.
People want things that are limited and in high demand because they don’t want to miss out. You can create scarcity from a well written ad. To do this you have to show them why it’s scarce and then mention that it’s scarce and compel them to act.
In your ad you should list all of the features your property has, even if nearby properties have the same features and specifically point out the features that no other nearby properties have. I’m not talking bedrooms and bathrooms; I’m talking about what’s nearby and the benefits of your location. If you can make your property very appealing, then you can create a sense of scarcity. If you say, “Due to application volume, all applications due by ___,” make them think you have a lot of people wanting the place and they will be more likely to put in an application now.
Another way to create a sense of scarcity is to have short, slightly overlapping appointments when showing the house to potential tenants. If they see people leaving and coming while they are there, they will view the property as more valuable because they might lose out if they don’t apply right away. Having all of your appointments in a short time period also saves you a lot of time.
What psychological tactics do you use to be a better, more effective landlord?
Leave me a comment below!