Property Managers, what do you do when you have to deal with a chronically strained relationship with a tenant? Problematic relationships commonly develop over time, however there is a point at which you should thoroughly assess the situation and improve or correct the problem before an unfortunate outcome. In some cases, property managers inherit a tenuous relationship from a previous manager or in other cases, the cause may lie with another team member. But the ball settles in your court.
Some suggestions regarding communications and actions with these tenants:
Respond Promptly - Few things escalate problematic tenant relationships than allowing an issue to go unanswered. Always respond to tenant issues promptly, even if you do not have an immediate answer. Be sure to let the tenant know you have received and understand their communication and are working toward resolution.
Actively Listen and Empathize - Understanding your tenant's perspective is critical. When conflicts occur, actively listen to their concerns, and give your full attention. Show empathy by acknowledging their feelings and validating their experiences. Sometimes, people just want to vent or know they have your ear. This is your opportunity to de-escalate the situation and gather necessary information to effectively address the issue. By demonstrating that you value their concerns, you should be able to build trust and encourage more collaborative problem-solving.
Stay Professional - During difficult conversations, maintaining a professional demeanor is crucial and helps avoid a personality conflict to develop. Keep emotions in check, always use a calm and respectful tone and avoid any language that could escalate the situation. This sets the tone for the interaction and demonstrates your professional integrity. You also effectively reflect the property ownership and your management company’s brand.
Document Interactions - Documentation of all interactions with problematic tenants is not only a best practice but may be crucial to protect your company should an issue become litigious. Documentation needs to include a timeline with exact dates and details of all written correspondence, phone or in-person conversations, verbal or written agreements and all follow-up actions.
Be Proactive – Most experienced managers have a sixth sense regarding problematic tenants, so be proactive as soon as you recognize ongoing trouble. Check in with tenants regularly and be responsive to any of their concerns. Identify key players and develop those relationships over coffee or a casual meeting. If you are new at the property, prioritize those tenants and work to re-set the relationship. Engage all your tenants with regular updates on activity at the property and ensure everyone that you wish to maintain open lines of communication for any issues.
Resolve Conflicts - When conflicts do arise, it’s essential to recommend a win-win solution that not only satisfies the terms of the lease but takes into consideration the relationship with the tenant or property owner. Not always easy, I know. Tenant conflict is sometimes based on multiple issues and can’t be resolved with a single action, and it may take time to resolve multiple issues.
Know Your Tenant Leases - A well-constructed lease should anticipate and address every possible issue that the landlord/tenant relationship will face and is the cornerstone of the relationship. In so many cases, tenant discord is often due to tenants not being familiar with their lease. In many cases, they don’t understand how rents, operating expenses, real estate taxes and other expenses are calculated and applied to their rent invoice. Their communication will often start with, “I didn’t know about this, it’s unfair and I’m not going to pay it.” Other times, they just aren’t aware of general rules that affect their occupancy. Knowing and understanding every detail of each tenant’s lease is vital. It allows you to respond promptly and in a knowledgeable manner, often mitigating the tenant’s argument quickly. With rent invoice explanations, be transparent with expense calculations and walk the tenant through the calculations and methodology, as necessary. If the problem lies with the tenant’s view of building services, be sure commitments and obligations of the lease are truly being fulfilled for them. Be the expert and take the high ground. Lack of knowledge regarding a lease agreement or procrastination aren’t options. While still being amenable, you need to remind the tenant that as a property manager, you have obligations to your property ownership, lending partners and others to ensure the tenant meets all the obligations of the signed lease.
Managing strained tenant relationships requires more skill sets than many people appreciate. It’s similar to dealing with employees. However, by demonstrating your multiple skills, you hopefully can enhance tenant satisfaction, foster a positive environment and maintain a overall successful property management operation.
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