Join Australia's most dynamic and respected property investment community

When do you Say No to a Tenant?

Discussion in 'Property Management' started by eng, 10th Feb, 2016.

  1. eng

    eng Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    114
    Location:
    Macarthur, NSW
    When tenants asks your pm to carry out repairs, do you have a limit on how much you're willing to spend? When do you say yes & when do you say no?
    Do you have a relationship with your tenants and deal with them on a personal level or do you leave the relationship building to the pm?
    I'm interested in learning whether you think it's good to be hands on and build rapport with your tenants, or be nice but engage only on a business level.
     
  2. fullylucky

    fullylucky Well-Known Member

    Joined:
    27th Jun, 2015
    Posts:
    409
    Location:
    QLD
    If you supply it when they first move in then you are required to repair/replace it.

    That's why sometimes it's better not to supply it in the first place, if you supply a toaster or kettle and it breaks you have to repair or replace it.

    I self manage. I think sometimes it's better not to have a personal relationship with tenants.

    Rule 4 on my list is:
    Don’t get emotionally attached to your clients. Don’t underestimate the power of emotions to distract and disrupt. Emotions make you sloppily, know your motivation and always know what you want.

    If you are their "friends" it makes it harder to make tough clear business decisions. If you want to have a relationship there is a ton of other people in the world. Don't do it with your tenants. They will ask for discounts, concessions etc. People have unlimited wants...
     
    eng and Kangaroo like this.
  3. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    2,917
    Location:
    Brisbane
    We self manage. I've made very good friends with one tenant and his wife. If anything, he gives us concessions on the rate he charges for work he does for us. He appreciates that we've give him months of work. We appreciate that he does a great job and for a good price. He collects certain old books, and if we see any in op shops, we buy them for him. His wife has made us treats and brought them over when we have been working on renovations and we sit around and chat.

    I realise this is rather unusual, but that is how it is.

    We still raised the rent when we renewed his lease. It is still a business relationship, but if we were out somewhere and I introduced him to someone I know, I would say "this is Adam, a friend of ours".

    It all comes down to the people involved. Our other tenants are friendly, and one has eaten dinner with us more than once, and recently when she dropped a key off that she had to collect when she locked herself out, we had wine and cheese on our front deck for an hour or two.

    Some tenants I would keep it much more business-like. Case by case is how I work this caper.
     
    MBT, eng and EN710 like this.
  4. Ouga

    Ouga Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    372
    Location:
    "Trying is the first step towards failure" Homer
    Let the PM do the work for you: that's what you pay them for!
    When it comes to repairs, there are things you are required to repair when they break down. Others fall more into the wear and tear category. However, often tenants can ask for an improvement rather than purely a repair. This is when you use your best judgment.
    I like to think about it this way: does it add value to the property? Does it make the property more appealing for tenants in general? Is the tenant likely to stay as a result? Then you can make a more informed decision. You add to that elements such as the tenants themselves, your plans for the property, the cost involved etc.

    For instance a little while ago, the tenant asked if we could install a ceiling fan in the living room. Could have said no, but it adds value to the property, makes it more appealing and does not cost a fortune, so it's a yes.
     
  5. fullylucky

    fullylucky Well-Known Member

    Joined:
    27th Jun, 2015
    Posts:
    409
    Location:
    QLD
    Looks like the thread got deleted. I guess some people don't think very highly of safety...

    It's a shame, because that was a serious thread...

    Sorry Eng, not trying to hijack your thread. Better stay on topic. My point is: You don't get high on your own supply! They are your cows and you get milk from them.

    Make friends with other people not them.

    Sounds harsh but that's the best advice I can give you.
     
    eng and Scott No Mates like this.
  6. Chilliblue

    Chilliblue Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,578
    Location:
    Australia
    When to say no to a tenant

    1. When your states legislation states that it is not a requirement

    2. When you have no material affect or increase to your asset
     
    eng and JessicaP like this.
  7. Xenia

    Xenia Adelaide Property Manager Business Member

    Joined:
    21st Jun, 2015
    Posts:
    2,342
    Location:
    4/136 The Parade Norwood, South Australia
    You say no when requests are unreasonable.
    Ie "please ask landlord to remove the lawn in the courtyard and pave the area" (brand new house, perfect instant lawn just put in). "I saw a bug on the lawn and can't let my son play outside I'm scared his going to get bitten, please do something about it, he is crying all the time, wants to be out"

    Answer - no, seeing a bug is an unreasonable request to put a landlord through the expense of removing the lawn.

    Let the pm deal with it, we are good at putting an end to the drama people need to create in their own lives.
     
    eng, Perthguy, DaveM and 1 other person like this.
  8. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,502
    Location:
    Sydney
    Yah. My tenants in one of my IPs asked me to remove palm trees because they are tired of cleaning the seeds. I said No and am prepared to let them go. Those palms made the backyard nice and provide some shade. If I gave in they will ask for something else "wrong" with the property. They're just not prepared to look after a big backyard.
     
    eng and Xenia like this.
  9. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,536
    Location:
    Sydney or NSW or Australia
    I recently commissioned a pest treatment - the report came back with a dozen items, all bar one are tenant use (food, crumbs, detailed cleaning, tight fitting bin lid etc). I need to use no more gaps.
     
    eng likes this.
  10. neK

    neK Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,253
    Location:
    Sydney
    Understand the difference between a Want and Need.
    Want = Nice to Have
    Need = Legally obliged

    Eg. Tenant requests an Air Con.
    If Air con was NOT on the lease then its Want.
    If Air con was broken, but it was not noted on the lease that the air con is broken, then its a NEED.

    Where it is a Want, I give the option of it being installed in exchanged for a rental increase (followed by a subtle suggestion of a portable one that is for sale at Bing Lee / Good Guys / etc and that those actually belong to them).

    In term of limits, the same theory applies.

    Kitchen benchtop is broken
    Want = You want a nice bench top, so you spend more
    Need = All you need is a basic bench top to fulfil its duties.
     
    cherubym and eng like this.