Master This and You Will Be Well On Your Way to Getting Over 100% of Your Rents Every Month
If you have rental property, does this sound familiar?
“I Can’t Believe My Tenant Did That!”
“Why Did They Do This?… I Thought They Were Good Tenants”
Don’t worry, it happened to me when I got started too.
Here’s Your Big Question: Why do Tenants act like they do not have any common sense?
ANSWER: Because their definition of “common sense” is totally different than yours! Try this on for size:
Back in high school, I got a job at Winn-Dixie grocery store as a bag boy and buggy retriever. Do you think the manager tossed me an apron and said go up front and start bagging groceries?
That is what I expected, but it did not happen. In fact, he took me over to the employee lunch room where I had to watch at least 2 hours of Welcome to Winn-Dixie along with training videos on how to sack groceries properly.
That’s not all. Then I had to take a “test” using practice groceries to bag them properly using the paper bags with corners. (not plastic) Only after I passed my ‘bagging groceries test,’ did I receive my new green apron diploma to begin sacking groceries for customers along with rounding up buggies in the parking lot.
What does this have to do with my tenants? A lot! Chew on this for a moment. Odds are, if you have rental property and remember when you got started. How many times did you call your next new tenant, tell them they are approved, and to meet you at the house at 5pm today or tomorrow.
You show up and ask them if they have their money. You pull out your papers and rental agreement and instruct them to initial each page and then sign the last page and date it? Maybe this is done on the kitchen counter or the hood of your truck or in a fast food joint.
Then you count your money while they are initialing and signing. After you make sure you got your money, you gather up your originals and give them keys to your investment property.
Isn’t this the same as tossing a green apron to the next new hire? Yes, it is.
What kind of training did you give your new tenant? ZERO, nad-dah, zilch. And now you honestly want them and expect them to behave like Aunt Bee in Mayberry?
We live in our own “Bubble” and Tenants live in their own “Bubble.”
Where do you and your family members shop? Probably the mall, a department store, or maybe even Wal-Mart.
Where do most tenants shop? Hold your breath on this one. Many tenants shop at pawn shops, rent-a-centers, etc.
WE Think This Is NUTS. Why? Because we live in our bubble and would never set foot in any of those places with over priced products with outrageous financing.
Here is the real world. Did you know Aaron’s Rent-A-Center is a very successful company that sponsors a Nascar Team or two? If they are making huge profits and we never set foot in those places, this means they do have a lot of customers, just none of us.
This is what I am talking about. This is normal in the Tenant’s Bubble.
We say things like shopping at pawn shops and rent-a-centers is not the best way to shop. OK. This is our BUBBLE. We think folks who shop at those places are not real bright.
Tenants say things like “Landlords have deep rich pockets.” They do not have to shop at pawn shops and rent-a-centers.
What we think is normal is our “Bubble.” What tenants think is normal is their “Bubble.” This is what makes the world go round. They call us “weird” and we call them “weirder.” This will never change and the sooner you grasp this, the quicker your business is more successful.
After chewing on the above and “getting it,” let’s go back to the bag boy job. Why not have a new tenant training 101 and orientation with a “Welcome to Your Company” video (Rent Talk System DVD) along with detailing their responsibilities and consequences. Oh yes, included is a checklist they initial and date as they progress through your new tenant training. Lastly, signing your lease, counting money, and giving them keys to your investment property.
ALWAYS include a Welcome Package. It shows them you value them as your new residents.
To Your Continued Success . . . by the way, I will be in Kansas City from September 8th through the 12th at MAREI. At the Tuesday Meeting I will be sharing my 10 Proven Keys to Consistently Getting Paid Over 100% of Your Rents Every Month and then I will be back on Saturday with a 2 Part Workshop . . How to Fill Your Vacant BEFORE they Move Out and How to Screen Your Tenants in 15 Minutes or Less. Visit the MAREI Calendar to Register for both events and to get all the Details, I will probably be chatting with Kim on a Webinar or two the last of August and the first part of September too!.