Co-Founder at the Roots Investment Community.
Investment property ownership comes with regular tenant interactions. While negative interactions may seem to dominate, I’ve found that it’s entirely possible to cultivate healthy relationships between landlords and tenants—and it’s good for business, too.
In this article, I’ll explore ways landlords and tenants can work together to establish trust, effective communication and reasonable expectations.
Create a dynamic where both parties feel they’re getting the best part of the deal.
In the world of real estate, no one should come out on the losing end. It’s crucial that both parties feel like they’re getting a fair deal throughout the rental agreement.
In a survey conducted by Lemonade in November 2022, American landlords and tenants were asked about their relationships. Surprisingly, the study revealed that 79% of American renters considered a landlord who was rude about repairs worse than a landlord who consistently raised the rent (65%).
From a landlord’s perspective, 79% considered a tenant who pays their rent on time to be exceptional. The next three important categories were maintaining cleanliness (74%), adhering to property rules (72%) and being employed (60%).
In light of these findings, here are six ways property owners can create a respectful and mutually beneficial rental agreement:
1. Write a clear lease agreement.
First, having a written rental agreement that clearly defines the responsibilities of each party is essential for accountability. This agreement should cover expectations for maintenance and repairs, provide a timeline for fulfilling requests and establish a communication method for reporting repairs.
2. Encourage transparent and timely communication.
Transparency is key to building trust and avoiding misunderstandings. As a property owner, it’s in your best interest to encourage open communication from your tenant regarding any property issues. This not only makes your tenant feel valued but also allows you to address issues promptly, potentially reducing repair costs.
Overall, effective communication is crucial for a successful relationship. Poor communication can jeopardize responsibilities for both parties and lead to misunderstandings and resentment. Consider using communication tools that facilitate respectful and timely interactions. A third-party site instead of simple texting, for example, may make it easier to track conversations.
Renters want to feel that they can easily reach their landlords and hold them accountable for property issues, while landlords want clear instructions and fair opportunities to address concerns. Whether it’s through text, email or a third-party communication platform, ensure that your chosen method encourages transparent and timely communication.
3. Promptly address maintenance issues.
When notified of a maintenance issue, make it a priority to address it quickly. A leaky faucet may not be urgent, but a burst pipe certainly is. The faster you respond to property issues, the more likely tenants will be willing to support you in maintaining the property.
4. Respect the tenant’s privacy.
Respect your tenant’s space, especially if is a multifamily property. Provide proper notice before entering the property for inspections or repairs. This will encourage your tenants to reciprocate by only reaching out when necessary and respecting your privacy by contacting you at appropriate times.
5. Be flexible with rental agreements.
Flexible landlords who accommodate reasonable tenant needs are more likely to find cooperative tenants. This may involve discussing lease terms, move-in dates, minor property modifications and extended stays.
6. Establish clear steps each party can take when they encounter difficulties.
Lastly, establish a clear path for conflict resolution. While it’s important for property owners to protect themselves, tenants should also feel empowered to stand up for themselves. By outlining steps that both parties can take in the event of disagreement, tenants will feel heard and less disadvantaged. Consequently, they’ll be more inclined to treat you fairly by maintaining the property, paying rent on time and accommodating your needs as a landlord.
By following these tips, I believe landlords and tenants can foster a positive and fruitful relationship, ensuring a successful rental experience for both parties. As a property owner, you should always be looking for ways to motivate your tenants to take care of your properties. In the end, look to any strategies that can create a win-win situation between you and your tenants.
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