THOUSANDS BEHIND ON RENT
One of the common comments we get from prospective property management clients is that they enjoy the relationships they have established with their tenants, and they don’t want to lose that connection. On one hand, we applaud such a noble endeavor to treat their tenants well with an eye on relationship building. The majority of the time, however, shortly after hearing such a statement we learn that one or more of the tenants in the investor’s portfolio are significantly behind on their rent. We find that some of these owners have tenants who are behind by thousands of dollars. Most of these landlords don’t have the luxury of using their rental portfolio as a charity.
Tenants Happily Pay More For Positive Relationship
Please do not get us wrong, we do not believe that tenants are blood sucking opportunists who look for ways to mess over their landlords. Some tenants do know how to play the system, but the majority of tenants want to have positive relationship with their landlords. We have found the best way to establish and encourage such a positive relationship is to set professional boundaries that incentivize them to prioritize rent payments. This does not mean we have to be cruel or unsympathetic, but it does mean that we don’t budge within preset parameters. We stress communication, and we keep our landlords up to date on collection developments. Our goal is not to take you out of the driver’s seat.
Legal System Favors The Landlord… This Is Not A Misprint
A common complaint expressed by real estate investors is that the landlord tenant legal system is slanted toward the tenant, and they are commonly taken advantage of in such a system. These same investors are skeptical when we tell them that we use this structured legal system to their benefit, and that the vast majority of tenants we work with end up paying their past due rent, court costs, and legal fees accrued as necessary through the process.
Keep The Relationship & Blame The PM
Once a tenant who is behind learns that there is a new sheriff in town, they are not likely to want to experience this legal process again. Consequently, a healthy boundary has been set whereby they know concretely the cause and effect results of rent prioritization decisions, and we all can go on living happily ever after. And, the best part of this process is that you can keep being the nice landlord and building those relationships. We don’t mind you having contact with your tenants, if you desire such contact, and you can blame us for the fact that boundaries have been established. Some of our owners go so far as to explain that it is now out of their hands. Here 2 Serve is now in control of rent collection. In the end, we all feel good because encouraging people to fulfill their obligations is good for them, good for you, and good for society as a whole.