Think back to the first day of any class you took while in school. What did the teacher do? Most likely he or she went over what the course would cover and what you needed to do to earn a passing grade. In other words, the teacher set student expectations. Landlords should do the very same thing with tenants. Setting tenant expectations on day one is a must.
Setting out tenant expectations is one of the keys to getting the landlord tenant relationship started off on the right foot. It must be done clearly and it must be done at the very beginning. If not, you will essentially be leaving things open to interpretation. Leaving things open top interpretation will lead to confusion and conflict. Confusion and conflict is not something you want in your business.
What are expectations? They can be varied and many. They should be based on your unique management and business style. At the very least, I would suggest some form of the following:
- An expectation of when the rent is due
- An expectation of how your property must be treated.
- An expectation of how you (and your staff) must be treated.
- An expectation of how the tenant will be treated.
Tell Them Your Expectations
Setting out your expectations is simple. You tell your tenants what they are.
You do this during a portion of your lease signing meeting. It is as important as going over the lease itself. It is at this time that you can define the landlord/tenant relationship, remove uncertainty and stress how the next year is going to go. Sit across the table and tell them:
- That the rent is due on the first of the month.
- That eviction will be filed if rent is not paid.
- The difference between normal wear and tear and tenant damage.
- How an emergency is defined.
- How repairs will be handled.
- How tenants can get their security deposit back.
- That communication is the key to any successful relationship.
- That they will be left alone if they meet your expectations.
Do Not Assume
How do you tell them these things? That is of course up to you. But I would caution you that you should not assume anything. Do not assume that they know that they cannot call in a repair at 5 PM on Friday afternoon and expect the problem resolved that evening. Do not assume that they know that no matter what life throws at them, the rent is still due on the first. Do not assume that they know what clean means. Do not assume that they will take all of their stuff with them when they move out.
The above may sound a bit silly and you might be thinking that these things should not have to be explained. While those two statements may be true, I am here to tell you that they do need to be explained. You cannot assume that your tenant knows or understands anything.
Expectations Work
Setting expectations works. You passed most of your classes in school right? You knew what you had to do because your teacher laid it out for you. Your tenants can have the same experience. By setting expectations, you can get the majority of your tenants pay their rent in full and on time. You can get them to communicate with you if there is a problem. You can get many of your properties back almost in as good of shape as you provided them to the tenant. You just need to spell everything out on the front end. You need to tell them how to earn the passing grade.
Setting expectations just makes sense. Yes, it takes a little time and effort on your part, but it is good business and good for both you and your tenants. Take some time to put your expectations into words and then share those words with your tenants. Every time and on day one.
What expectations do you discuss with your tenants, please share with your comments.
Hi Kevin,
As you once shared with me, I have been using ” Rent Talk ” video to set the expectation and it works great. Thanks for the advice.