How to Keep Good Tenants Remaining Good Tenants

We already know that the key to a successful tenancy is to first find a good tenant. Haven’t we often secured good tenants only to find they eventually waywardly drift and gradually become poor tenants? Why does that happen? There is a combination of reasons that happens. Let’s explore how to make good tenants even better and how to keep them that way.

Now that you have a good tenant that you have already properly screened, accepted and signed a lease with, you may be tempted to feel like your job is finished and that you can sit back and relax now. The property is rented! Now you can take a vacation, right? Wrong. The landlord’s job is never done 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 lets talk about making good tenants even better.

1. Emphasize what you feel are the most important lease clauses. If you haven’t already done so, carefully cover the provisions of the lease personally and emphasize the important items to your tenant. Do it as soon as possible. (Note: When utilizing the TMHA Lease, our staff covers some of the lease provisions with tenants that we feel are important. However, we encourage the landlord to make the time to address all of the lease provisions that they wish to emphasize during a face to face meeting that you have with your tenants). You may even want to write a follow up letter welcoming the tenants to their new home and reminding them of those key elements in your lease that are especially important to you. Some landlords even include another copy of the lease with certain clauses highlighted.
    

2. Emphasize to the tenants the importance of paying their rent on time. Many tenants are not financially savvy enough to know how their history of making payments can affect their credit ratings. Many of them do not even understand the importance of maintaining a good credit rating. Take the time to inform your tenants that they may not qualify for a car loan or mortgage loan in the future if they are not careful about making timely rental payments. You may wish to tell your tenants that a poor history of paying their rent and utilities in a timely manner can have an adverse affect on their credit rating. Also, if you choose to report negative information to any of three major Credit Reporting Bureau’s, inform the tenants up front that this could be a repercussion of not keeping their rental payments current.
    

3. Enforce your lease by properly documenting any adverse actions taken against a tenant. When a tenant gets out of line, correct the situation by utilizing some type of professional form. Nip the problem in the bud before a small problem turns into something much more serious. For example, if you choose not to 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 heard the old adage “Familiarity breeds contempt”? When a tenant becomes comfortable enough to think the landlord has become their friend, they will often lose the professional respect that they may have once had. So, enforcing the lease utilizing professional forms and documentation is the way to go.
    

4. Enforce penalties such as late fees. 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 tenant is late. (Note: The standard TMHA Lease allows for a $5.00 per day late fee to be assessed for each day the full rent is not paid beyond the 5th of the month). Keep in mind that some Courts in the past have not upheld this provision in leases if the tenant can prove that the landlord had a history of inconsistently enforcing the late fee provision.
    

5. Allowing an Early Payment Discount is another effective tactic to get the rent paid on time or early. Everyone enjoys saving money. And that money adds up over time, so make sure the tenants know about it if you have this policy. If you do not have this clause in your lease, you could always create an “Early Payment Voucher” system and explain its usefulness to your tenants.
    

6. Routine Inspections are also an important function that the landlord needs to establish a habit of conducting. When the tenant is expecting an inspection of the premises by the landlord or property manager, the property has a better chance of being kept in an acceptable condition. Many landlords will inspect on regular intervals (our suggestion) prearranged with the tenant. Others will do more of a surprise inspection process. And some just emphasize that they will do inspections but just never seem to get around to doing it. The best reason to do regular inspections is to prevent a mole hill from becoming a mountain. Landlords cannot correct problems that they don’t know exist, no matter how small. So protect your property by making the time to conduct regular inspections of your rental units.
    

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