It’s a great time to purchase an investment property. But succeeding as a landlord requires more than just finding good tenants. Whether you’re a first-time landlord or a veteran property manager, one of the most important things you can do to succeed is to effectively communicate with tenants. But handing them a stack of paperwork isn’t enough. Without clear communication in person, a tenant might be left thinking it’s OK to send a late rent check or leave the smoke alarm without batteries.
Tenants sign a lease agreement that spells out much of their responsibilities when renting a property. But to avoid misunderstandings, you’ll want to find ways to orally reinforce what you expect from tenants. Here are several ideas:
Make tenant education a priority. Take time to get to know tenants. Let them know what makes a good tenant. Reinforce some key responsibilities, such as paying rent on time, explain policies and ask if they have any questions for you.
Create a property binder. For each unit, build a folder that can be left with the tenant. It should include practical information such as the location of breaker boxes, neighborhood information such as locations and contact information for schools, post offices and banks. The binder should also include a copy of the lease and appliance manuals. Take a few minutes to review the binder with tenants.
Review the lease. Everything is spelled out in the lease. But you’ll also want to thoroughly explain in person key tenant responsibilities, such as the date on which rent checks should arrive and repercussions when they do not pay rent on time.
Walk through the property with tenants. A quick walk-through with tenants can make all the difference. Make stops at various appliances, explaining how they should be maintained and providing any tips for their use. For example, you might let them know how often to change furnace filters or any other responsibilities they might have in terms of upkeep.