President's Message

Keeping Our Tenants Happy

I’m sure it’s not news to anyone that our economy is in some really tough times right now. There is a glimmer of good news, though, and that is if you happen to be a buyer or future buyer, house prices are continuing to fall. My wife is a real estate broker, so we have a bird’s eye view of the market all the time. At the pace home prices are falling, come spring 2009 we might be able to make a house cash flow. You only need three things. 1) Financing and/or cash, 2) The guts to pull the trigger, and 3) A big enough tenant pool to fill those houses.

The main thing I want to stress is to keep the tenants you now have. Be Johnny-on-the-Spot with your tenants’ repair requests. Send an occasional card to ask if everything is going good. I know this sounds crazy but I have had tenants tell me things like, “I didn’t want to bother you but I have had a leak for a month.” That’s the last thing I want to hear! Right away I start picturing mold and rot and who knows what else. I just want to get it fixed and keep the tenant happy.

Another thing I’m hearing and think is a good idea is when you get a 30-day notice to move from one of your tenants, get them on the phone and ask them why they’re moving and if there is anything you can do to keep them. It might be a simple misunderstanding that you can work out. We need to remember that our tenants are our customers and they are paying off our mortgages for us. The least we can do is treat them well.

If you do lose the tenant, keep a good attitude and be flexible! Some of your new applicants may have lost their house to foreclosure or maybe even filed bankruptcy, but don’t just reject them. Take a closer look at them - they may have a good job and your rent may be way less than what their house payment used to be. My wife and I have a great tenant who went through this exact same scenario.

I am hearing about some softness in the rental market, mainly in the above $1100 per month range, so keep on your toes and keep your tenants happy.

See you next month!

Terry Luelling