High-Tech Taco Joints & Missing Landlord Reports: Do People Matter?
I went to a newly-opened Mexican restaurant the other day to meet a friend for lunch. When we entered, I was expecting a nice hostess to say “hello”, take us to our table, and hand us some menus. Instead, we were greeted with some imposing automated ordering machines. I looked at my friend and asked him if he knew what to do. He shook his head “no” and then stepped forward to start pecking at the screen.
Meanwhile, a manager saw these inquisitive middle-aged men jabbing their fingers into the machine and saw that we may need assistance. She dutifully came over and began to give us a tutorial on how one would go about ordering. I told her we had never been there before and wanted to know what she would recommend. She looked at me quizzically and seemed to recommend that I get with the program and push the screen enough times properly to actually order something. Fair enough.
The prices seemed pretty high for standard taco fare (couldn’t I buy 3-4 large pizzas for this?), but we were past that point. The machine already had a nice tip in mind for me, automatically applied it to the bill, and was prompting me to just tap a credit card and get moving. As my card registered with a beep, I was prompted to enter my cell phone number. When I complied, a text message buzzed with the order number (telling me to pick up a table marker with the corresponding number), my receipt, and a link to sign-up for some restaurant points system.
The manager brought us our drinks and told us our food would be out shortly. One minute later, the tacos were on the table. We ate. The manager came back out and asked us how the food was. I told her it was fine. She then made a heartfelt plea for a 5-star Google review. I was non-committal, but she showed me how easy it was to access the review page by asking for my phone and pressing a card with a Google logo against it. Nothing happened. Once she discovered that I was an unenlightened Android phone user, she gave up and told me to visit their website when I had time.
For a tech person, this restaurant may have been nirvana. It took the people component largely out of the restaurant experience. For me, it was a sure sign of the downfall of western civilization. These types of restaurants are not my thing.
I guess I should have done my own investigation and saw what this new place was about before I went. It had a non-corporate name, but my friend told me they had locations all over the place in other states. He had asked around and done his homework!
To the real estate front… this situation made me think about how few landlord reports we get asked for nowadays when our tenants vacate. We used to regularly get other landlords contacting us to ask to see what type of tenants they were for us; there was an importance to it! Like homework, it wasn’t something that anyone really liked to do- it takes effort to pick up the phone, track down the past landlords, send the required information consent forms, get the questions answered, and look into housing gaps in a landlord history. But, to me, it might be the most valuable tool we have to assess incoming tenant quality and identify red flags. Past landlords will largely tell you how it is.
Like the restaurant business, property management has always been a people business. If tenant assessment is only done on a spreadsheet level, important (re: costly!) things can be missed. Asking around and digging in further than a credit score and criminal report can pay big dividends. Upfront effort can lead to the long-term benefits of finding a great tenant for a smooth tenancy.
High-tech taco joints and algorithm property management can sound good on paper. But smart landlords (and restaurant owners) know that old-fashioned, low-tech people interactions can prove to be the most vital component of repeat business and successful leases.
Happy Landlording!
Learn MoreCharlotte Property Management Monthly: 5 Crucial Expectations to Set Verbally With Your Tenants at Lease Signing
I’m a big believer in setting expectations in relationships; it seems to make things go more smoothly. If you know clearly what you’re supposed to do and I know what I’m supposed to do, there is less opportunity for hurt feelings and animosity. A beautiful, life-long relationship can blossom! (Cue the romantic music…)
This is why many married couples say the first year of marriage is the hardest. There is no book of set expectations for each partner; it’s created on the fly. The idyllic vision of married life begins to fade quickly when real life is thrust upon them. Who pays the bills? How many days are you staying out late with your buddies? You want me to iron the clothes? These fun questions need to be addressed and expectations of conduct need to be negotiated so both spouses are (mostly) satisfied. There is no marriage contract that explicitly spells this out.
Fortunately, a landlord-tenant relationship is governed by a set of rules known as “the lease”; this should theoretically make things easy! A lease is a perfect way to express your expectations to your tenant. That sounds good, but how come there often seems to be hurt feelings and bickering in leasing relationships? From the landlord’s perspective, the tenant should read the contract and follow it to the letter, right? If the tenants did everything the lease said, there would be no issues. So, of course, the issue lies with bad, rebellious tenants.
Wrong. The problem is a society who doesn’t have the time to read anymore. You are in the minority that you have made it past the Twitter-restricted 180 characters and are on to the fourth paragraph of this blog. Congrats! Pat yourself on the back!
And the standard lease is not exactly a page turner! It is legal jargon with no cool pictures or diagrams that goes on for page after long page…
If you want your tenant to know what you want them to do, you must verbally tell them. They will remember what you say and will usually act accordingly. Your leasing relationship will be the better for it! Guaranteed.
Tell the tenants what you expect (the Cliff Notes version please!) and what you are going to do for them (and won’t do for them!). The five most important things I make sure I cover with tenants in our lease signings:
1. The date the rent is due (the 1st of the month), the day it is late (it must be RECEIVED by the 5th of the month), and the day eviction is filed (the 16th) if we don’t hear from them and work something out. I also mention the late, bad check, and eviction fees that would be due in each scenario.
2. Where their security deposit is, what it is for, when it will be returned (within 30 days after move-out), and under what conditions some of it may be withheld.
3. Explaining that aesthetically the home is “as is”. When things stop working (HVAC, plumbing, etc.), what the repair process is and how it is handled.
4. I explain the 3 keys to a good tenancy: paying your rent on time, getting along with your neighbors, and keeping the home in good shape (including standard maintenance).
5. How early lease terminations are handled. Life happens and this is how you can get out of your lease and keep your credit intact. (Note: We ask that a 30-day notice be given along with 2 months of rent as a lease termination fee, in addition to the rent due up to the vacancy date)
6. Bonus item message to give for property managers: “We are not the owner of this home. We are the messenger. We don’t always like being the messenger, because messengers get shot sometimes. You don’t need to shoot us. We’d actually really appreciate it if you didn’t.”
This isn’t a comprehensive list, but it is important to remember that attention spans are not endless. These five points should be helpful in having a great relationship with your tenant!
Brett Furniss is the President & Owner of BDF Realty (Charlotte Property Management) which works with Charlotte real estate investors and homeowners and Rent-To-Sell Realty (“When You Need a New Solution to Sell Your Home”) which specialize in rent-to-own (lease options) and rent-to-sell homes. His newest book, A Real Estate Agent’s Complete Guide to Representing Rent-To-Own (Lease Option) Tenants (Delight Clients, Fill Vacant Homes, and Earn $2,250* Upfront! (*Minimum!)
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