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How To Keep Your Tenants Happy & Your Properties Full · The Property Unleashed Podcast

• 0:00
  Speaker 1: How to deal with tenants.
• 0:01
  Speaker 1: Hello, my name is Mark Fitzgerald.
• 0:14
  Speaker 1: It's great to have you joining me here today.
• 0:15
  Speaker 1: So I get asked this all of the time.
• 0:17
  Speaker 1: Mark, you have a big property portfolio and business and how do you deal with all of the tenants there?
• 0:23
  Speaker 1: So we're going to go through some of the key things that I feel that you need to understand and also incorporate into your property business.
• 0:31
  Speaker 1: If you're self-managing, if you've got a rent-to-rent business, or even if you have a letting agency managing your properties for you, a lot of these things will help and support you in most businesses and things that you're doing as well.
• 0:46
  Speaker 1: So, firstly, if you are putting a property business together, getting started in rent to rent, letting out HMOs you have a lot of clients yes, tenants I like to call them clients or customers in your properties.
• 0:59
  Speaker 1: That's a lot of people potentially in one small area.
• 1:03
  Speaker 1: I'm not saying the properties are small, I'm just saying we're all living on top of each other.
• 1:07
  Speaker 1: So there will be disagreements, there will be arguments, there will be people that rub each other up the wrong way, and we have to make sure that we support our clients, our tenants, and that we look after them.
• 1:20
  Speaker 1: Also, there has to be guidelines that they're aware of, that they need to adhere to as well.
• 1:25
  Speaker 1: So, firstly, you've got to lay down the ground rules from day one, and that involves having a property handbook.
• 1:35
  Speaker 1: Okay, you want to have a guide, a handbook, something that you give to your tenants, get them to sign, to say that they've had it and they'll read it, or they have read it, and it's like the house rules so predominantly your house rules want to let people know that they need to clear up after themselves, of course, in all of the communal areas, that at certain times in the morning, very early, and of course, at night, that they are courteous to each other.
• 2:00
  Speaker 1: If they like listening to music really loudly, that they're happy to wear headphones or earbuds or whatever, that they've got there because they are in a small area, a small communal area, and they do need to obviously be nice to each other.
• 2:15
  Speaker 1: It's a bit like if you're just living in a house as well, you've got next door neighbors.
• 2:18
  Speaker 1: You don't really want to be playing loud music late at night all of the time.
• 2:23
  Speaker 1: Maybe you have a party, but then let people know about that, but of course, in an HMO where it is like that, you want to have some rules there, I mean in your handbook.
• 2:32
  Speaker 1: You also want to have safety rules and things like that in there.
• 2:35
  Speaker 1: So what to do if there's an emergency.
• 2:37
  Speaker 1: If there's a fire, call 999, ask for a fire engine.
• 2:40
  Speaker 1: Don't call you as the landlord or as the acting agent.
• 2:45
  Speaker 1: So make it stupid simple, make it a bit of fun as well, but also do make sure that you've got your guidelines in there of what is acceptable and what is not acceptable as well, because it'll make it a lot easier.
• 2:56
  Speaker 1: Then if you have a tenant that is causing you a bit of a disturbance or not tidying up after themselves, you can say you know, refer back to the handbook that you've signed to say that you will abide by those rules.
• 3:08
  Speaker 1: So when you're actually doing a new tenancy, we like to send those handbooks along with it to say you must read this before you can move in, before you sign your tenancy, and once you've signed this on a docusign or whatever, to say it's in your pack that you have read it and you will adhere to these rules.
• 3:26
  Speaker 1: I mean to these standards.
• 3:28
  Speaker 1: It's not strict guidelines, it's just common courtesy for your fellow housemate, if you know what I mean.
• 3:35
  Speaker 1: So we need to make sure that they've got their handbook, and we also need to make sure that they are compliant and they understand what is expected of them.
• 3:43
  Speaker 1: Now, what we want to also make sure we offer is a VIP service.
• 3:48
  Speaker 1: Now, what do I mean by that?
• 3:49
  Speaker 1: Well, there's certain things that you just want to be on top of when you have tenants in your property business, so you want to make sure that they can be heard.
• 3:59
  Speaker 1: Now, some people will have a bad day.
• 4:01
  Speaker 1: Okay, they'll go to work.
• 4:03
  Speaker 1: They'll not have a very good day.
• 4:04
  Speaker 1: Maybe they got told off, maybe something went wrong, maybe they just stubbed their toe on the edge of the bed and then a little thing in the property annoys them, or a little thing in the property has been annoying them for a while, but they haven't taken the time to let you know about it.
• 4:20
  Speaker 1: All of a sudden, they've had a bad day and then they decide they want to let you know, and what happens is people get emotional.
• 4:28
  Speaker 1: So we've got to understand that nothing is personal.
• 4:31
  Speaker 1: Whether it's your property business or you're looking after the properties for other people or you've got a property business, it's just business.
• 4:38
  Speaker 1: So if we get somebody who maybe drops us an email, sends us a message or rings us up has a problem.
• 4:45
  Speaker 1: We make sure that, as long as they're not disrespectful and rude and obviously very hostile towards people, that we let them be heard.
• 4:55
  Speaker 1: Okay, the amount of times that I've just let somebody on the end of the phone just vent, just get it off your chest, almost agreeing with them, maybe if I do agree with them, I don't agree with them for no reason.
• 5:05
  Speaker 1: If I don't agree with them, I might not be saying it.
• 5:08
  Speaker 1: Then what I will normally say is listen, I've taken a note from everything that you've said to me here.
• 5:13
  Speaker 1: I appreciate how you're feeling and everything.
• 5:16
  Speaker 1: Let me just go away see what we can do for you and I will get back to you within the next 24 hours.
• 5:22
  Speaker 1: Is that okay with you?
• 5:24
  Speaker 1: Okay, nine times out of 10, they say yeah, yeah, yeah, that's fine, that's fine, and then they'll probably go off and tell you it all again before you can get them off of the phone and things.
• 5:33
  Speaker 1: Now, obviously, if it's something serious we need to react to, then obviously we need to get to it.
• 5:37
  Speaker 1: But chances are and you'll find this a lot more I let my virtual assistants do this now, but you'll find that somebody just wants to vent, normally if you let them sleep on it, or maybe it's happening in the morning and at the end of the day you normally end up getting a message saying oh I'm sorry about how I was before.
• 5:56
  Speaker 1: As bad as all of that.
• 6:03
  Speaker 1: In fact, it's even sorted itself out now, so you don't have to worry about it.
• 6:04
  Speaker 1: But you were there, you listened to them, or somebody or a member of your team listened to them, take notes and we need to see whether it's justifiable as well, because it may be a justifiable problem that we need to sort out and we need to help them with.
• 6:17
  Speaker 1: But make sure that your tenants, your customers, are heard, because a lot of the time let them get it out of their system and then normally they're like well, it wasn't as bad as all of that.
• 6:27
  Speaker 1: I was just having a bad day and of course we all have bad days, don't we?
• 6:32
  Speaker 1: If it is a major problem.
• 6:34
  Speaker 1: A second thing to that is, if it is a major problem or there can be a quick fix, get in there and fix it.
• 6:41
  Speaker 1: Don't procrastinate on things, even if it costs a few pounds or whatever.
• 6:45
  Speaker 1: Be really proactive in your approach in sorting out any problems that they might have.
• 6:51
  Speaker 1: Be quick to act on things.
• 6:53
  Speaker 1: If something's broken or it's not fit for purpose, get in there, get it sorted.
• 6:57
  Speaker 1: Don't let it drag out for ages because that again can affect what people are doing okay.
• 7:02
  Speaker 1: So you need to make sure that you're really proactive in what you're doing and how you are doing it and have some systems and some processes in place to be able to help you to do that.
• 7:12
  Speaker 1: Okay.
• 7:13
  Speaker 1: Now if you do speak to somebody and you say to them that's all right, we're going to get straight on this and we're going to do it.
• 7:18
  Speaker 1: Do it always.
• 7:20
  Speaker 1: Make sure that you do what you say you're going to do.
• 7:22
  Speaker 1: So if you do say to them, you know we'll get back to you within 24 hours.
• 7:26
  Speaker 1: Make sure that you do get back to them in 24 hours.
• 7:30
  Speaker 1: I mean even to the point of saying I'll tell you what.
• 7:33
  Speaker 1: We'll ring you by, you know, 11 o'clock tomorrow just to solve this problem.
• 7:36
  Speaker 1: Make sure that you do.
• 7:38
  Speaker 1: Okay.
• 7:38
  Speaker 1: Now, if you've got a problem and you think and they think, you should be getting that fixed right away.
• 7:43
  Speaker 1: Maybe the boiler's gone down.
• 7:45
  Speaker 1: Let's say, for argument's sake, the boiler's gone down.
• 7:46
  Speaker 1: Wi-fi will be tired if the Wi-Fi goes down.
• 7:49
  Speaker 1: You better act quickly.
• 7:51
  Speaker 1: But the boiler's gone down.
• 7:52
  Speaker 1: Maybe it's wintertime, it's cold and things like that.
• 7:54
  Speaker 1: You're trying to get hold of a plumber.
• 7:56
  Speaker 1: Of course, when it's wintertime, everybody's boiler's gone down.
• 7:58
  Speaker 1: Maybe you can't get hold of a plumber.
• 8:00
  Speaker 1: You can't get anybody there as quickly as you would like.
• 8:03
  Speaker 1: Then make sure you come back to them and just say we are on this.
• 8:06
  Speaker 1: Okay, I see far too many people not do this.
• 8:09
  Speaker 1: But you say we are on this, we are getting this sorted.
• 8:12
  Speaker 1: We've got our plumber now, but he's not going to be able to get to you until tomorrow evening.
• 8:15
  Speaker 1: Okay, but we, he will be there and he will be coming Now.
• 8:18
  Speaker 1: If he's going to let you down or whatever, just let them know Now.
• 8:21
  Speaker 1: You might not like to do those calls and things, but trust me, when people actually know what's happening, they're a lot more forgiven than if they're just left in the open, if they're left out there wondering what is going to happen.
• 8:34
  Speaker 1: Okay, so make sure that you do what you say you're going to do and you're following up with people regularly.
• 8:39
  Speaker 1: Okay, to support them, to let them know what is happening.
• 8:43
  Speaker 1: Also, what we like to try and do in our properties is make communities.
• 8:47
  Speaker 1: Now, you can't always do that okay.
• 8:49
  Speaker 1: I have got properties where there are no communities.
• 8:52
  Speaker 1: They don't even talk to each other as far as I'm aware.
• 8:54
  Speaker 1: But we also do have some specific properties where they're in certain areas, where there's certain sort of tenant types and things, and put those together, uh, in such a manner that people can get a bit of a community spirit.
• 9:07
  Speaker 1: I mean, there's a few properties that actually when I walk into them I don't even need to put a cleaner in there.
• 9:12
  Speaker 1: We have a cleaner that goes in there a couple of times a month.
• 9:14
  Speaker 1: We don't even need to do that.
• 9:15
  Speaker 1: Why?
• 9:15
  Speaker 1: Because they keep the place spotless.
• 9:18
  Speaker 1: I mean, it's a really easy job for the cleaners do.
• 9:20
  Speaker 1: But we have our cleaners going in there because they test and check fire alarms and sign that off for us.
• 9:25
  Speaker 1: They also take meter readings for us as well and things like that.
• 9:27
  Speaker 1: But they go in there and one time I actually walked into the kitchen and the mop and bucket were by the door as you went into the kitchen.
• 9:35
  Speaker 1: Not a hazard or anything, but it just been left.
• 9:37
  Speaker 1: Why?
• 9:38
  Speaker 1: Because somebody had used the kitchen, maybe made a mess or something like that and had mopped the actual floor all the way up to the door then to let it to dry and things, just to keep it nice and clean.
• 9:47
  Speaker 1: So it's really really nice.
• 9:49
  Speaker 1: But if you can get that community spirit, what you will find is your tenants will actually start finding new tenants.
• 9:55
  Speaker 1: When you've got a great community, their friends, people that they know and stuff want to be a part of that community and of course, if you're looking after them, that is another good reason why they want to be a part of that.
• 10:07
  Speaker 1: So what can happen is as soon as a tenant moves out, they'll find somebody else that wants to move in, or they'll have a friend or somebody else that wants to move in as well.
• 10:15
  Speaker 1: Now you still have to do your reference and credit checks and all of those great things and get your guarantors in place with those people.
• 10:22
  Speaker 1: But I always say to my existing tenants if you do refer somebody to come and stay here and we take them on, we'll give you a 50 pound Amazon voucher.
• 10:30
  Speaker 1: Can't say fairer than that.
• 10:32
  Speaker 1: They love it.
• 10:32
  Speaker 1: Half the time they don't want it.
• 10:33
  Speaker 1: They say no, it's all right, mark, don't worry about that, but we do it anyway and we make sure that we look after people.
• 10:39
  Speaker 1: So it also cuts down on your marketing.
• 10:42
  Speaker 1: It cuts down on any void periods that you have and, of course, if you've got a rent to rent business, your void periods you want to keep to a minimum as well.
• 10:49
  Speaker 1: Why?
• 10:49
  Speaker 1: Because you want to be maximizing your profits.
• 10:52
  Speaker 1: So make sure, if nothing else, that you've got good communication, you're offering that VIP service and you are dealing with problems efficiently.
• 11:01
  Speaker 1: I took on a property and it was an all-on-suite property and one of the ladies actually room five I remember this very well when I got there, her shower didn't work.
• 11:11
  Speaker 1: Okay, this is all-on-suite room, so she didn't have a place to have a shower.
• 11:14
  Speaker 1: Now, luckily, community, she got on very well with the lady in room number one and she let her use her shower.
• 11:22
  Speaker 1: Okay, but all it was.
• 11:23
  Speaker 1: It was an electric shower.
• 11:24
  Speaker 1: It just given up the ghost, it just needed to be replaced.
• 11:27
  Speaker 1: Now, this was four weeks this had been going on for.
• 11:30
  Speaker 1: So when we took the property on, I got my plumber in there.
• 11:34
  Speaker 1: We put a new electric shower in straight away and she thought it was Christmas.
• 11:39
  Speaker 1: Okay, so it's just being able to go and sort out those problems.
• 11:43
  Speaker 1: You know, just being proactive on that.
• 11:46
  Speaker 1: Another property that we took on, the washing machine had locked itself.
• 11:50
  Speaker 1: Okay, it still worked, but the catch on the door had broken so it had washing in it.
• 11:55
  Speaker 1: Now, when I took over, I said how long has it been like this?
• 11:58
  Speaker 1: For Now, this is one washing machine in a house of five people okay, five people in this house.
• 12:03
  Speaker 1: Two weeks, two weeks, they hadn't been able to wash their clothes in the house because the washing machine was broken.
• 12:10
  Speaker 1: This was this.
• 12:11
  Speaker 1: Well, this had a management, a letting agent managing it.
• 12:14
  Speaker 1: I went in there.
• 12:15
  Speaker 1: I actually would.
• 12:17
  Speaker 1: Normally now I would just get my electrician or my plumber to go in there and sort that out for me, but at the time this was one of my earlier properties.
• 12:24
  Speaker 1: I looked on YouTube at how to get the door open and it was a piece of string.
• 12:27
  Speaker 1: So I got the door open.
• 12:29
  Speaker 1: If nothing else, I was expecting the washing and it was all wet in there to really stink.
• 12:33
  Speaker 1: It didn't.
• 12:34
  Speaker 1: Actually, it was all right.
• 12:35
  Speaker 1: Anyway, we got the washing out and hung that outside and things like that, and it took me 48 hours to get a new catch for this door.
• 12:42
  Speaker 1: I just had to order the part and it was very, very simple to fit.
• 12:46
  Speaker 1: So we got that fitted and I say within two days of taking the property on, we'd fix the washing machine.
• 12:51
  Speaker 1: Okay, it'd been like that for two weeks.
• 12:53
  Speaker 1: That is unacceptable.
• 12:55
  Speaker 1: Okay, you cannot operate like that.
• 12:58
  Speaker 1: But all of a sudden, when you're taking on a property or the tenants in the property see you proactive in what you're doing, they will appreciate it, or they should appreciate it.
• 13:07
  Speaker 1: Not everybody will.
• 13:08
  Speaker 1: Some people are just like that.
• 13:09
  Speaker 1: Don't worry about those.
• 13:10
  Speaker 1: But a lot of people will appreciate what you're doing for them and how you're looking after them.
• 13:15
  Speaker 1: And, of course, if you do have a problem, if rents are being paid late, if somebody is being a nuisance, if you've got a bit of communication, you don't have to be their best friends.
• 13:25
  Speaker 1: I've certainly never been their best friends or anything.
• 13:27
  Speaker 1: My team aren't either but you do want to be able to have that line of communication, to be able to go in there and just say you know, this is the problem, let's have a chat about it.
• 13:37
  Speaker 1: But remember, do not get emotional about things.
• 13:40
  Speaker 1: Just go in there and talk.
• 13:45
  Speaker 1: Even if they start to get emotional, they start to get a bit heated and things like that.
• 13:47
  Speaker 1: Just keep it down.
• 13:47
  Speaker 1: It's the only business at the end of the day.
• 13:48
  Speaker 1: We are here because you're making this sort of noise.
• 13:51
  Speaker 1: We are here because you've got this problem.
• 13:53
  Speaker 1: We are here just to talk to you because you haven't paid your rent.
• 13:55
  Speaker 1: What is the problem?
• 13:56
  Speaker 1: Is there anything that we can help you with?
• 13:58
  Speaker 1: Have a great customer service in your property business.
• 14:03
  Speaker 1: Another thing that I see and I'll end on this is people get very, very emotional because money's involved A lot of the time.
• 14:10
  Speaker 1: It's our money, it's our business.
• 14:12
  Speaker 1: Okay, I did.
• 14:13
  Speaker 1: I'm very emotional when it comes to stuff like that, which is why you've just got to switch it off, almost step out of your own shoes and be that business owner.
• 14:23
  Speaker 1: Be able to go in there and just say listen, what is the problem here?
• 14:26
  Speaker 1: Rather than getting it all heated, go in at locker heads, and it doesn't get you anywhere.
• 14:30
  Speaker 1: And, of course, if you can go in there and you can really say you know we look after the place, we look after you guys, we just need you to be honest about what's happening.
• 14:37
  Speaker 1: What is the problem here?
• 14:38
  Speaker 1: Why haven't you paid your rent, or why is your rent always late and things like that Is there something that we can change and help you with Goes a long way.
• 14:46
  Speaker 1: I did have a few people actually, whereas the rent always was coming in a few days late.
• 14:51
  Speaker 1: So I just went in and spoke to them.
• 14:53
  Speaker 1: I just said what is the problem here?
• 14:54
  Speaker 1: Because it's always late, you're paying it, but you're always paying it late.
• 14:57
  Speaker 1: Well, what they didn't choose to do, and what a lot of tenants won't do, is to say, well, I don't actually get paid.
• 15:04
  Speaker 1: Then that was when I moved in.
• 15:06
  Speaker 1: I get paid like five days later, or three days later, or two days later, which is why it always looks like it's late.
• 15:11
  Speaker 1: Well, why don't you just let us know that?
• 15:12
  Speaker 1: Obviously, now we ask people what day they're paid on, what day they're paid on, what day they're going to pay the rents and things like that, so that we've got it in stone.
• 15:19
  Speaker 1: But it's a case of saying, well, that's okay, we'll just move the pay date to this, and then you're not late again, are you?
• 15:23
  Speaker 1: So as soon as you get paid you, you pay your rent.
• 15:26
  Speaker 1: Happy days, we're.
• 15:28
  Speaker 1: We're up and running, because a lot of people will say well, I want to be paid on the first of each month, or the 30th or the last day of the month and things like that, but not always people's wages, but people's wages aren't always paid at those times.
• 15:41
  Speaker 1: So make sure that you do ask those questions, because it makes it a lot nicer.
• 15:45
  Speaker 1: Nobody well, potentially a lot of people don't want to be late, don't want to be pestered when it comes to paying rents and things, and we always do try and say to them as well if you do have a problem or a late payment's coming, just let us know.
• 15:57
  Speaker 1: If you let us know, that's fine.
• 15:59
  Speaker 1: If you don't let us know and we're chasing it up, it's not really fair on us, is it at the end of the day?
• 16:04
  Speaker 1: But a lot of people won't say because they're not priority.
• 16:08
  Speaker 1: Okay, you know, having the latest smartphones, going out with the friends and everything, having a lifestyle, that's their priority.
• 16:14
  Speaker 1: We aren't their priority, even though it's where they live, it's where they dwell.
• 16:18
  Speaker 1: So just make sure that you're thinking like that.
• 16:21
  Speaker 1: Of course, any problems like that, if it goes any further, then you have to be able to take action.
• 16:25
  Speaker 1: But you can go back to your house rules to say that you know you need to abide by this.
• 16:30
  Speaker 1: You can go back to your contracts and say well, this is what you signed a degree from, so everything is there in black and white for you.
• 16:36
  Speaker 1: So at least you know you've covered and you've done everything properly.
• 16:39
  Speaker 1: Make sure, when you're setting up tenancy, that you are putting the relevant documents into a pack and they're signing for it and it's the latest documents that you can get your hands on.
• 16:48
  Speaker 1: I'll do a video of that on its own and make sure that you're delivering that VIP service.
• 16:52
  Speaker 1: If you do those things, you will have a better business than a lot of people out there.
• 16:57
  Speaker 1: You will run it more efficiently than a lot of people out there and you will make more profits than a lot of people are out there as well.
• 17:04
  Speaker 1: Hope you've enjoyed this episode.
• 17:05
  Speaker 1: If you need any help with your property investing, then please visit thepropertyunleashedcom.
• 17:12
  Speaker 1: We have free tools and resources.
• 17:13
  Speaker 1: Ebooks, guides, masterclasses all are there and, of course, we have training and support to help you if you need it.
• 17:20
  Speaker 1: If not, come and see me in the next episode right now.
• 17:25
  Speaker 1: See you there.