Have you ever made a deal with someone, performed the work you were required to do and then had to wait for the other party to do their part?
ONE SCENARIO
Consider the situation a new renter is in. They may be new to town and are unsure about you, your company and/or the property they contracted to lease from you. They could possibly be on edge not knowing whether you’re going to come through on your end of the deal. Will you actually deliver the property on time? Will the property be in suitable living standards? Will you take their money and run?
I had an experience in 1999 with a landlord in Elizabeth, New Jersey. We contracted a home to lease and paid the deposit up front. Upon arrival, none of the locks worked. Within 2 days the heat went out in the middle of the night and it was below freezing. Repairs that were supposed to have been completed prior to our move-in, had not even been started. We went searching for this property manager to find out that he was consistently “out of the office”. Did I mentioned that he refused to return calls as well?
SO WHAT HAPPENED?
I ended up moving out and had to sue the property manager for the security deposit. He waited until the day prior to the court date to release the funds – 30 days after the request was first made.
All of this took place because he and his team didn’t take responsibility in making sure the home repairs had been done in a timely manner and did not effectively communicate with his renters. We had a set move in date, by which move-in standards required the home to be in a good living condition. Not prioritizing a move-in ready home for his tenants cost him a paying renter, a vacancy for the rental property which meant more time on the market and was just overall unprofessional.
THE TAKEAWAY
It’s essential that either your property manager or you as a self-managing owner ensures that the rental property is completely ready for your tenants to move-in at the agreed upon date and is diligent in responding to tenants inquiries. It may not mean a lawsuit for you, but it could cost you a renewal. Tenant turnover can be very costly in the real estate investment game, so do keep these couple of important items in mind.
If perhaps you are self-managing and may be ready for a little assistance in maintaining your property management responsibilities, don’t hesitate to give us a call today to see how we can help! We pride ourselves in keeping your tenants happy, your property in great condition year-round and improving your ROI (return on investment).
We look forward to working with you! Contact us today.
By: Mathew Leschber, 1836 PM Founder
