How to Conduct Lease Reviews More Effectively With New Tenants
June 7, 2017
If you’re a landlord or rental property investor, it pays to utilize an “on-boarding” process to ensure that they understand the terms of their lease and are satisfied with it. The term “on-boarding” is commonly used in business circles to refer to new, recently hired employees that are being introduced to the company. The process usually includes the company’s policies and procedures.
On-boarding in the property rental industry is very similar given the fact that tenants are provided with policies and procedures that they must comply with in the lease or rental agreement. So the first step of the process is reviewing the lease and going over these different policies and procedures that the tenant is expected to follow. Unfortunately, many landlords today fail to realize the importance of conducting a lease review. And that is why there are issues later on with the tenants.
The Reason For Lease Reviews
If you are truly treating your investment properties as your business, those lease reviews are the most important company meetings you can have. This is the one opportunity you will have to ensure that everything contained in the lease or rental agreement is clear and thoroughly understood. Case in point, informing the tenant that you charge a rental fee for pets is a good example.
Even if they don’t have a pet at the time of their move-in, you will have laid the groundwork should they decide to have a pet in the future. Imagine how disgruntled the tenant would be if they decided on getting a cat or dog in 3 months and you waited until then to inform them of that. That’s not going to go over too well, is it? The tenant might feel as though you were taking advantage of them or worse, break their lease and leave. That is why it is important that you look at all aspects before you let the tenant stay
Effective Tactics For Lease Reviews
If you’re going to conduct a lease review with a new tenant, consider the following tips to make it more effective:
- Allow them to ask any questions about their lease at any time during your meeting.
- Be friendly, don’t rush through the agreement, and above all, act professionally.
- Before you meet, mail the lease to the tenant.
- Discuss all of the policies that are listed in the agreement.
- If you have specific policies that are unique to your properties, explain why you do.
- Stop and ask them if they have any questions but have not said anything (you might want to do this anytime you have explained a complex policy or rule).
- When you finally do meet, bring a copy of the lease with you.
On a closing note, these tactics will help you form the basis of a long-term relationship with the tenant. And that could be worth its weight in gold.