As you may or may not yet know, the key to having a successful rental property is to first find a good tenant. I can not tell you how many times we screened and selected good tenants only to find they gradually become bad tenants? Why is that? There is a combination of reasons that this happens.
Now that you have a good tenant you have already screened, accepted, and signed a lease with, you may be tempted to feel like your job is finished for now. The property is rented! Now you can take a vacation, right? Wrong. The job is never over unless you sell your rental property and retire somewhere nice, never to see or speak to another tenant again. Are you going to do that anytime soon? OK, so let’s talk about making good tenants even better.
One important factor to remember is that when you sign a lease agreement with a tenant, this is a binding contract by both parties to perform, you the owner are obligated to perform certain tasks just as the tenant is obligated to. If you the owner do not do your part you could actually be in breach of contract first… If you put it in writing you better be ready to back it up and follow through.
1. Emphasize the most important lease clauses by setting the proper expectations from the beginning.
If you haven’t already done so when you carefully went over the lease personally and emphasized the important items to your tenant, do it as soon as possible. You can even do it with a follow-up letter welcoming the tenants to their new home and reminding them of those key elements in your lease that are most important to you. Some landlords even send the tenant a spare copy of the lease with certain clauses highlighted.
2. We tell our tenants that if they do not pay their rent on time it will negatively affect their credit report / However when they do pay on time it can conversely positively affect their credit.
I have achieved outstanding results by advising new tenants not to pay late because it can affect their credit rating. I inform them that they may not qualify for a car loan or mortgage in the future if they are not careful about their rent payment. I warn, “PLEASE DON’T RENT FROM ME” if you think you will have trouble paying the rent on time. . I’d truly HATE to ruin your credit and damage your financial future”.
3. Enforce your lease.
When a tenant gets out of line, correct the situation with a professional form. Nip the problem in the bud before a small problem becomes a disaster. If you do not send a late notice as soon as the rent is late, the tenant will continue to be late. If you are inconsistent with sending the late notice, the rent may consistently be late. Have you ever heard the old adage “Familiarity breeds contempt”? Well, when a tenant becomes comfortable enough to think the landlord is a friend, he often loses the professional respect he may have once had. So, enforcing the lease with professional forms is the way to go.
4. Enforce penalties such as late fees.
Something to remember is that you are running a business, the way that your business is successful is by having policies and procedures not only in place but followed by both parties. Using a professional form is great, but it has to pack a punch to get the results you want. Don’t be afraid to hit a tenant with the late charge whenever the rent is late.
5. Routine Inspections.
Routine inspections aren’t always as important as the expectation of routine interior inspections. When the tenant is expecting an inspection of the premises by the landlord or manager, the property is usually kept ready to pass the inspection. Many landlords will inspect on regular intervals prearranged with the tenant. Others will do surprise inspections, and some just emphasize that they will be doing inspections, but just don’t get around to it. Even if you can’t get around to it, it may be a good idea to send the tenant a note from time to time to tell them of an upcoming inspection. The main thing is that your property is cared for properly.