Ensuring Tenant Satisfaction in Property Management


Property managers usually face an uphill task of retaining tenants, especially in apartment properties. Even if the vacancy rate is not high, there seems to be frequent changes in tenancy, which ultimately cuts into the profitability. The main reason for this is discontent amongst tenants, arising out of some common complaints.

If property management can effectively tackle and resolve such complaints, tenants will be satisfied and will not want to shift to other properties. According to studies the most common complaints of apartment tenants are:

o    Lack of proper upkeep of the common areas
o    Disorganized property management and poor interaction with staff
o    Poor or no response to maintenance complaints
o    Lack of parking space
o    Security issues
o    Poor lighting
o    Issues with pets
o    Negligible preventive maintenance
o    High rent

Amongst these complaints, poor maintenance of the property and higher rental rates were the main issues for most tenants. Many property managers fail to implement a system for preventive maintenance, which results in many breakdowns and repairs happening at the same time. The normal upkeep of the common premises also suffers due to poor maintenance procedures. Coupled with all these problems, if the rent rate is high compared to the competition, many tenants will be dissatisfied and trying to find a property offering better service and lower rental prices.

Apart from implementing effective preventive maintenance procedures, property management has to ensure that all tenants receive outstanding on-site service. Such a policy is not difficult to implement and certain changes can make a major difference. Here are some practices that will ensure tenant satisfaction.

Open Channels of Communications

Tenants should have easy access to air their issues with property management. Open up various channels for tenants to get in touch with the property manager and staff. The manager and staff should also take a proactive approach and try to connect with tenants, without being too formal and at the same time retaining a professional approach. Once tenants are given a chance to air their issues, half the problem is solved.

Being Responsive

The property manager and staff need to be more responsive, and keep tenants informed about the status of their complaints. When the complaints are not resolved, and tenants do not know what is happening, they are likely to get frustrated and cranky. Whereas, if they are kept in the loop and informed how the resolution process in progressing, they are happier with the knowledge that something is being done about their complaint.

Resolve Issues Quickly

A proper property management system should be implemented, which ensures quick resolution of complaints. Being responsive will not help, if the property manager takes a long time to resolve problems on a regular basis. The manager should be able to identify the possible maintenance issues and have a service team or contractors ready. Most times the delays are due to lack of availability of professional people to conduct the repairs.

Once property management is able to establish marvelous delivery of service, the issue of higher rental rates will take second precedence, and tenants will be more inclined to remain on the property.

How to Deal with Complaints Delivered by Tenants


Complaints are inevitably filed by tenants, and it is essential for property management to deal with them effectively. All complaints should be properly tracked and addressed, which will not only keep the tenants satisfied and safe, but also timely resolution of the complaints, especially maintenance issues, keeps the property in a fantastic condition over the long run.

Certain tenants will be frequent complainers, while some will complain only when the issue has become big. However, the property manager must have an effective system to deal with all complaints consistently and professionally. Here are a few pointers for dealing with tenant complaints.

Recommend Contacting the Property Manager

Tenants should be encouraged to contact the property manager as soon as possible, in case they have any issues or complaints. Once tenants know that there is someone to address their complaints, they will not overuse or misuse this privilege. It is best to provide a phone number, where tenants can call during the specified time. Make sure there is someone attending the call and it does not go to voice mail.

Use of Complaint Form

When the property is huge, tracking complaints will become difficult unless it is recorded. In such a situation, it is better to have a written record, in the form of complaint forms. The information on such a form should include, name of tenant, unit number, date, and type of complaint. The later part of the form can be reserved for recording when the complaint was attended to, what type of repairs were made, whether the issue was resolved, how it was resolved, and so on.  

Prompt Resolution of Complaints

Property manager should have in-house staff or a list of contractors who can be called on a short notice to do the required repairs. However, certain issues can be quite complex, and cannot be fixed within a short time. In such a case, the tenant should be kept updated about what is being done about the issue. Once the problem is solved, the tenants should be told about their issues being resolved, even if they are obvious to them. Nevertheless, property management must have a strict policy of resolving issues as soon as possible, as that will prevent further damage, or the problem becoming worse.

Dealing with Interpersonal Issues of Tenants

Apart from maintenance and repairs complaints, there will be some complaints from tenants about other tenants on the property. For instance, the most common complaint is about the noisy neighbor, who creates disturbances at odd times. Property manager has to deal with such complaints professionally and with tact. It is also necessary to include clauses in the lease agreement regarding expected behavior on the property and the penalties for not adhering to such terms.

First start by investigating the issue, and find out if the tenant in question is indeed creating a nuisance. If the tenant is found to be noisy, rude, or sloppy, then initially a warning should suffice. This warning should be documented as well for future legal reasons if it comes to that. You have to cover your bases. If matters do not improve then the tenant should be made aware of the consequences, and if the problem persists, the last resort is serving an eviction notice.

How to Handle Noisy Neighbor Complaint in Property Management


Property managers often receive complaints of noisy neighbors from many tenants. Dealing with such a complaint is usually quite tricky, since it can be difficult to monitor the decibel level, especially if the noise occurs at different times of the day or night. Tenants usually have issue with noise that is caused due to loud music or television, children crying or playing boisterously, parties, or gathering of friends. Here are some points to consider and tips to follow for resolving the problem of noisy neighbors.

Is the Complaint Valid?

First, determine if the complaint is valid, or the tenant is simply over sensitive to noise. Sometimes there might be some other issue between the neighbors, and even a little noise might be sparking anger in the tenant. For checking the merit of the complaint, the property manager might have to visit the units at various times, or ask the tenant to phone when the noise occurs. When the noise is occurring, ask the other tenants if they find the noise excessive or disturbing. After checking that the noise is indeed occurring, speak with the supposed culprit directly about the issue and find out what they are thinking.

They need to know they do not live in a house and that they need to keep the noise down and to change their habits.  

Determining the Severity of the Issue

The property manager needs to find out if the noise has occurred only once or it is an ongoing problem. Sometimes the tenant would have had a few guests over for the night that caused the noise, and this can be treated as a one-time offense. However, if the tenant is in the habit of playing loud music every day, then there is an issue but it can be dealt with.

Addressing Both Parties

If the complaint is valid, and it is an ongoing issue, the property manager should have a talk with the tenant causing the problem and let him know that noise complaint/s has been filed against him or her. If it is a first-time complaint, a warning will usually suffice. In addition, the property manager should speak with the tenant making the complaint and inform him or her that the issue has been addressed.

Repeated Complaints

If the offender tenant fails to heed the warning and continues with the noise, then the property manager will have to remind the tenant of the possible penalties according to the lease agreement. There should already be a clause in the tenancy agreement that deals with this issue. A copy of the signed agreement with the relevant parts underlined can be given to the tenant as a reminder. If the noise continues, then the tenant can be served with a formal notice. Such a notice will state that the tenant will have to immediately stop the noise or face eviction.

Eviction is the Final Resort

If the noise does not stop even after giving the notice, then the property manager will have to take steps to evict the tenant. However, this should be the last resort after giving fair amounts of warnings. The property manager should also gauge whether the noise is affecting quality of life of the other tenants and then take the necessary measures. Sometimes people are just rude and they have to learn the hard way.

Screening Tenants and Limiting Losses with Bad Tenants

Handling bad tenants is a nightmare for the property manager, and therefore it is much better to have an effective and poignant screening system in place to avoid renting out the property to such people. Here are certain screening procedures that are highly effective.

1.    Background Checks: Thorough background checks are necessary for all prospective tenants. However, be careful you do not violate any privacy laws.
2.    Use of Databases: There are different industry databases that have a listing of bad tenants. For instance, there is a National Tenancy Database, which can be accessed by paying a small subscription, and there is the Landlords Advisory Service, which provides certain searches on payment of a small fee. However, there are certain laws governing the use of information from these databases, and you can check the guidelines at the website of Office of Fair Trading.
3.    Contact Employer: It is important to know how much a person earns to make sure, if he or she will be able to afford the rent. To know about the earning capacity of prospective tenants it is best to contact their employers and talk with them directly. Acquire the details about the employer and talk with the employer over the phone. Inquire about the monthly salary, and the post held by the person. It is also important to know whether the person is a permanent or a temporary employee.
4.    Ask for References: Always ask for the landline number for the references, since most scammers will have multiple mobile phones, and you could be talking to the same person when you call.
5.    Contact the Former Landlord: Talk directly to the former property owner rather than the real estate agent, as some agents may not want to reveal the person to be a bad tenant. Ask why the person had left the tenancy, and whether there were any late rent payments.
6.    Regular Inspections: Even after accepting a person as a tenant, the property manager should have a system in place to carry out regular inspection of the property. However, make sure the proper procedure is followed during inspections to avoid any legal trouble.

Be Upfront about Your Rent Rules

Even after following all the required screening procedures, it is still possible to end up with a bad tenant. In such a situation, there are some chances of losing money, but the priority should be about damage control. The best way to limit losses is to act expeditiously and within the confines of the law. Overdue rent should be tackled immediately, and the tenant has to be made aware about the rent & living policies. Include penalties for late payments in the rental agreement and enforce these terms strictly.

The Final Straw

A bad tenant will make all sorts of excuses for not paying the rent and such excuses should not be considered. However, if a tenant with a sparkling track record puts forward legitimate difficulties, then compromises can be considered to enable the person to make the payment. When rental arrears have exceeded a set number of weeks, the property manager can acquire an eviction notice through a rental tribunal.

Minimizing Conflict During Tenant Move-Out

Handling the tenant move-out process is usually a challenging task in property management, and mostly the conflict will be about the security deposit refund. In order to avoid this issue and other conflicts, it is important for the property management to make the tenant feel that the whole process is straightforward transaction. The steps involved in the move-out process should be made known to the tenants when they move in and sign the tenancy agreement or lease. It is also very important to keep proper documentation and open communications.

Giving Notice

Property management should mention in the contract or lease from the very start the procedure expected from tenants when they intend to vacate. The tenant has to give a written notice at least a month before the move-out date. It should be clearly stated that such notice should be in writing only, and no verbal notice would be considered. The notice should clearly mention the intention of moving out, the date of move-out, the address of the apartment or the property, and the signature of the tenant. Only when such notice is served to the property management, the move-out process would have initiated.

Property Inspection Prior to Move-Out

Conflicts usually arise when there is inspection before move-out and when there are going to be possible deductions from the security deposit amount. The best way to tackle this situation is to have a clear-cut policy about the whole thing. The tenant should be made aware that property management has a right to inspect the property during the last couple of weeks of the tenancy. Apart from that, the property manager should serve a two-day notice to the tenant before the inspection date.

The purpose of this inspection should also be made clear to the tenant, which is evaluating the property’s condition and tenant’s responsibilities before moving out. Scheduling such an inspection works out to the advantage of both the parties. Tenants will have a clear idea about what is expected of them if they want a full refund of their security deposit amount, and property management has set up a clear-cut process that provides required guidelines to the tenants, eliminating any ambiguity or confusion.

Statement Based on Property Inspection

Observations made by property management during the inspection should be itemized and documented, and the statement should be given to the tenant. Such a statement should clearly state the various things that have to be repaired or cleaned by the tenant for avoiding security deposit deductions. This itemized report has to be complete, accurate, and should confirm to the terms and conditions mentioned in the initial tenancy agreement or lease document.

Property Inspection after Move-Out

After the tenant has relinquished rights to the property and moved out, property management has to conduct another inspection to review the state of the property. The property manager will have to check whether the items mentioned in the inspection report has been taken care of by the tenant or not. It is a fantastic practice to take photos of the vacated property, which clearly shows the things left out by the tenant. This can prevent disputes and conflicts, when the deducted security deposit amount is refunded to the tenant.

How to Retain Dependable and Noteworthy Tenants

How to Retain Dependable and Noteworthy Tenants

One of the most important tasks in property management is retaining outstanding and impressive tenants. Retaining personable and friendly tenants over the long term will not only improve profits but there are much less hassles in managing the property. The longer tenants stay; there will be lesser turnover of units. Unit turnovers are expensive, which drains the profits.

An Understanding

Even if a new tenant occupies the unit the next day after the old tenant has gone, there are still many costs involved. To attain the new tenant, the property manager will have to spend on advertisements, the office staff will have to answer calls, the unit will have to be shown to prospective tenants, and a new lease will have to be made. The property manager will also have to return the security deposit to the old tenant, the unit will have to inspected, and the place will usually need a paint job and repairs to make it proper for the new tenant. All this takes a lot of time, effort, and money, whereas retaining tremendous and loyal tenants does not involve any costs.  

Pitiful & Uncaring Management

According to various surveys, one of the main reasons for tenants to seek new rentals is poor property management. Many tenants become frustrated with the poor state of the property and the nonresponsive attitude of property managers to get things repaired. If these two issues are handled professionally, there will be a drastic cut in the vacancy rate of any property.

Steady Communication

Being responsive is extremely important for a property manager while dealing with tenants. The property manager should not ignore calls, and talk to the tenants frankly about when the issues are going to become fixed. Tenants are more likely to get frustrated when they do not receive a response, whereas they will be more understanding when the property manager is responsive, even if the repairs are delayed.

Holding Up Your End of the Bargain

Addressing minor issues quickly is another way of keeping most tenants happy. In fact, it is better to have a system for preventive maintenance, where problems become fixed even before tenants have a chance to make a complaint. Preventive maintenance is an important part of professional property management and it should not be ignored. Such maintenance might require a little more investment but it works out much cheaper in the end in many ways.

Basic Rights

The property manager should also have respect for tenant’s privacy and not simply enter individual units anytime, without proper intimation. Everybody likes their privacy and nobody appreciates a person barging into their living space. Individual units have to be checked on a regular basis for preventive maintenance, but this can be done by scheduling visits or making appointments. Only when there is an emergency the property manager can enter the unit without prior notice.   

Simple Gestures & Actions

Finally, all tenants appreciate a property manager who keeps in touch and maintains a cordial relationship with everybody. It may not be possible to maintain face-to-face contact with all the tenants on a regular basis, but the manager can always send emails to say hi or wish tenants are doing well on special occasions and so on.

Types of Tenancy Agreements in Property Management

The rental or lease agreement establishes the terms that enable the tenant rightful use of the property. In property management, it is important to understand the different types of leases or tenancy agreements. There are mainly two types of tenancy agreements:

Lease with a Fixed Term

The lease with a fixed term is the most common tenancy agreement. Such a lease will state the duration the tenant is allowed to use the property, and the time when the lease expires. The tenant may continue to use the property on renewal of such a lease. Typically, fixed termed lease is for a year or two years duration, but longer durations are also possible. Sometimes the fixed term lease can be for certain number of months to suit the needs of property management.

For instance, the lease might be for 14 months instead of the usual 12, so that the termination date coincides with termination date of other tenants. This is quite useful in property management, since all tenants will have a common termination date, on which the lease can be renewed or the tenant can vacate the property. Another consideration for property managers is to take advantage of the peak demand period for rentals. In such instances, the termination date of the lease will be during such a peak period, where it will be easy to obtain a new tenant.

Period-to-Period Lease

In this type of tenancy agreement, the lease initially is for a definite period, and is automatically renewed if it is not terminated by the tenant or the property owner. The duration can be for a period for a week, month, or year; however, such leases are usually for month-to-month. The automatic renewing can go on indefinitely, until the tenant or property owner formally terminates the lease.

Month-to-month rental agreements are usually favored by many tenants as it is quite flexible and they do not have to worry about breaking the lease before the termination date, as it can prove to be costly. However, this type of lease works in favor of property manager or property owner as well. If the tenant is causing problems, then a notice of nonrenewal can be served, which is much easier than giving reasons and terminating a lease in the middle.

Some other types of tenancy agreements are:

Tenancy at Will

In tenancy at will, the lease will be in force until the tenant or property owner terminates the agreement. The lease can be terminated whenever either party serves a notice. However, a reasonable period is usually mutually predetermined for serving such a notice. In tenancy at will, the notice can served at any time, whereas in period-to-period agreement there is a fixed duration for giving the notice.

Holdover Tenancy

This is not actually a type of lease agreement, but occurs due to circumstances. This happens when the tenant continues to live on the property after the lease agreement has expired, and has not renewed the lease. This type of tenancy is quite similar to trespassing, the only difference being the person had previously held the right to use the property.

When is a property management company needed?

Hiring a property management company is a big decision for a property owner, and various aspects have to be evaluated before reaching a decision. Some property owners prefer to keep a resident manager, while some take the bold step of managing the whole property on their own. Here are certain important factors that should be reviewed to see if hiring a property management company would be anoutstanding and poignant decision.

Huge Property or Many Rental Units

When the property is huge or there are many rental units, it is wise to manage the show professionally by hiring a property management company. The sheer size of operations is too much for a single individual to handle.

Location of Rental Property

If the property owner is staying far from the property then it is advisable to hire a property management company, even if the area of property is small or there are few rental units. Many issues can crop up that cannot be handled from afar, unless there is a resident manager on the premises.

Interest and Time

Many property owners view their properties only as a lucrative investment and have no interest in managing the day-to-day requirements of running the show. Some property owners might be interested to have a hands-on approach but may not have the time, since they might be involved in improving their business, finding new properties, arranging renovations, and so on. Hence, if interest or time is lacking, it is best to hire a property management company.

Cost and ROI

Property management companies charge fees for their services and it is usually a percentage of the collected rent revenue. These fees can cut into the profit or ROI, and the property owner has to evaluate the returns carefully and compare it with the importance of the services offered. Secondly, the overall market situation and economy has to be considered. If the market is up and there are fantastic chances of lesser vacancies, then the property owner can seriously consider hiring a property management company. Even when markets are down, a shrewdand/or solid property management company might be able to improve the situation and still appeal to more tenants.

Expertise and Experience

Property management companies have much better expertise and experience in handling the various issues and legalities of managing rental properties. A small legal mistake can prove quite costly in the end and might open up the risk of costly lawsuits and huge settlements. Property owners have to comply with many complicated rules, and it is important to know various legal requirements. If the owner is not sure about these rules and regulations, it is best to hire a professional company that has marvelous knowledge in this area.

Not Wanting to be an Employer

Even if the property owner has hired a resident manager, the owner is still an employer and will have different responsibilities such as payroll and managing various legal requirements. Whereas a property management company is an independent contractor, where the property owner has minimum responsibilities.

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