Forming Great Relationships with Tenants, IS acting in Your Landlord’s Best Interest

I’ve always struggled with the widespread belief in our industry that forming strong positive relationships with tenants is somehow in conflict with acting in our landlord’s best interest.

For many that have worked as property managers for some time, even raising this topic is considered sensitive client relations based on a concern that the message may be received by landlords that we’re advocating a leniency or ‘siding with’ tenants in situations where negotiations are required.  However, raising a discussion around providing tenants with quality customer service is by no means suggesting this.

We as property management professionals, first and foremost do have a fiduciary obligation to our paying landlord clients.  Put simply, we act in their best interest at all times.  This is in commercial viability of their asset and in the overall risk management.  Being respectful and responsive to tenants and aiming to build rapport throughout the leasing and tenancy process should in no way be in conflict with our obligations to our landlords.  If managed effectively, the way I see it, strong positive relationships with tenants IS responsible property management.

Sure, unreasonable and overly demanding requests from tenants need to be addressed in accordance with the legislation and general industry guidelines around obligations to both landlords and tenants, but should always be done in a courteous and timely manner.  The following case study may help give some further context to this.

A tenant moves into a property and shortly after sends through a long list of things they want changed in a very demanding tone.  The property manager, whom usually instinctively gets ‘off side’ by this, may disregard the tenant by not responding, leaving the tenant to follow up in further frustration, or respond in an equally direct tone shutting down the tenants stating that they accepted the property as is and that the landlord has no obligation to do anything.  Whilst technically, this may be correct, the so called professional in the interaction here, has made no effort to even try and use the opportunity to connect and work towards a potential positive ongoing relationship.

Some people are always going to be difficult, we all know this in life, however drawing on my 5 star hotel customer service background, sometimes conflict resolution if handled correctly by professionals, creates a real opportunity to leave a lasting positive impression on the customer, even when they are being unreasonable.

Another approach to the demanding tenant in this instance may be as follows;

– A phone call instead of just email response

– In that call, the property manager may take the time to thank the tenant for raising their concerns

– Then thanking the tenant for indicating that they have an interest in making the property like ‘their own home’, which is appreciated by most property managers and landlords

– Now hopefully a more friendly tone set, a general discussion around the legislation stating that unless health and safety issues, properties are accepted as is

– However, given the importance of a quality tenant making a rental property their own and caring for it as such, the property manager then may breakdown the 10 items listed and state that whilst all may not be achievable, you’ll have a discussion with the landlord about what may be a consideration and if so, could the tenant perhaps give further information on which items would be a preference

Now I’m not suggesting in this case study that the tenant’s demands are reasonable and should be addressed, nor am I suggesting to falsely make unachievable promises before speaking with the landlord.  The landlord may not have the budget nor the willingness to make any improvements and ultimately that is their decision for their asset.  What I am raising for discussion is around the potential benefits to the landlord if their property managers are always working towards strong positive relationships with tenants where possible.

Again, some tenants are just difficult and unworkable, but wherever possible, I’ve seen a myriad of examples of how landlords are significantly advantaged through this industry mindset shift.  It could be with additional or short notice access requests by the landlord or their representatives, or tenants feeling comfortable to give plenty of advance notice around intention to vacate, or perhaps the early detection of a potential costly issues within the property.

Grant McKay
Director
Litehouse Property
0414 518 101
[email protected]