Face-to-face meetings with tenants is an essential tool for property managers even if the thought of doing it terrifies them. It should not be backed away from as it is by far the most effective method of sorting out a tenant problem be it late payment or damage.
E-mails, text or sending a letter will not usually produce a result and is too easy to either just ignore or deny receipt. However, a ‘paper trail’ is still a necessity for a property manager’s records but should be backed up by personal contact. By ignoring messages this does not make the problem go away for the tenant but does give them breathing space.
Breathing space for tenants is not a result for you!
What you need is immediate action not deferral of the problem. A physical face-to-face meeting tells the tenant you mean business and will not accept excuses. Serious problems such as late rent payment are much better dealt with by talking directly to the tenant and letting them see you consider the matter urgent.
Deal with a tenant problem as a priority
Late rent payments need to be dealt with straight away as mentioned previously. Face-to-face communication with the tenant has much greater impact and the message needs to be “the rent has to be paid now”, do not back down from this stance by using phrases such as – when you can – as soon as possible – as this gives a very different message.
Without face-to-face communication the tenant may imagine they can go on their merry way by ignoring messages. Basically sending messages only without any personal back up is giving the impression that the problem will be tolerated or accepted.
Personal meetings have other advantages
By personally talking to the tenant you are also able to suggest ways to overcome their inability to pay the rent whilst ensuring they realise it’s their problem not yours. The usual reasons of not having the money or even not knowing when they will be able to pay are not acceptable answers.
There are a few suggestions you could offer to their temporary lack of funds such as use of their credit card or a temporary loan from family or friends. Their bank may also have quick solutions such as a temporary overdraft so that you could receive payment the next day. Although a phone call is direct communication it is still not as effective as a face-to-face meeting (with the possibility of more in the near future if the problem is not resolved).
Urgency is the key
If a tenant has defaulted on the rent it is more than likely they have other payments in arrears such as car, power and appliance contracts. They will be weighing up which payment is the more urgent – a face-to-face meeting will tell them in no uncertain terms that you consider your rent payment needs to be at the top of the list and will need to be kept there.
Professional debt collectors are well known for their personal approach to defaulters to back up the written notices. They know the squeaky wheel is the one which gets oiled.
As well as creating a sense of urgency a personal visit also takes the tenant out of their comfort zone. Written communications can be dealt with as they feel like but being confronted by the landlord or property manager is a different kettle of fish. Guidelines for such meetings however may help in their execution.
Face-to-Face meeting guidelines
It is the nature of human beings to become defensive when confronted with failure to live up to their responsibilities such as rent in arears or damage they have caused. Therefore when communicating with them you should speak in a calm, reasonable tone of voice even if the discussion becomes more heated. Raising your voice shows you are losing control and should not happen. Remember this discussion is business not personal.
The tenant is much more likely to try and think of a solution to their problem if they are being talked to in a calm, reasonable, non-threatening manner. Having your tenant sort out their own solution is the best outcome but it doesn’t hurt for you to put forward possible ways to do it which they may not have thought of themselves.
The severity of the problem should also be kept in perspective during the discussion and the tone should reflect that.
Remember, the purpose of the discussion is to resolve the problem in favour of the property owner and skills to do this in a respectful and dignified manner should be part of the property manager’s repertoire.
Barry Bridgman has been managing his own investment property portfolio for 25 years. During this time, there has never been any occurrence of rent defaults or property damage and Barry’s goal is to achieve the same for your property. Bridgman Property Management is based in Auckland Central, where Barry has lived for more than 18 years.
