How to Break Bad News to Your Tenants
Your rent is going up.
Your water is being shut off for maintenance.
The property is being sold.
These are just some examples of bad news you will have to deliver at some point as a property manager. Hopefully you won’t have to break all this bad news at the same time, but you will experience moments as a property manager where you have to inconvenience your tenants.
Delivering bad news is an unpleasant experience for both you and your renters, but with proper preparation, delivery, and messaging, you can make the most of a difficult situation.
Though bad news can negatively impact your tenants’ experience with your rental property or management company, these tips will help positively influence how your renters receive the news:
THE PREPARATION
Plan Ahead – Normally, you will know about rent increases or scheduled maintenance ahead of time. Do your tenants a favor, and let them know of any bad news as soon as possible so that they have enough time to adjust their schedules or make important relocation decisions if needed. If you properly plan for disruptive events, you will be able to give your tenants enough time to prepare and can lessen the fallout of bad news for your everyone.
Give your tenants at least 1-2 weeks’ notice before scheduled maintenance, and another reminder of the scheduled maintenance a day or two prior to its start. If your property requires an emergency repair that will inconvenience your tenants, inform them as soon as possible. Tenants will be grateful for your proactive approach towards communication and maintenance, and will find it easier to forgive the disruption in their own routines.
When raising the rent, first check with both local and state laws about required time periods for tenant notification of changes in rent prices. Then, as an added courtesy, consider giving your tenant at least 1-2 months’ notice so they have ample time to make an informed decision. The earlier you can inform your tenant, the better.
Be Considerate – When scheduling repairs that could negatively affect your residents, be considerate of their time. For example, rather than turning off the water in the morning when most people are preparing for the day, try to conduct the necessary maintenance later when many tenants will be at work. Considering your tenant’s time will help major repairs be less of an inconvenience for them and will show them you are committed to their comfort in your property.
THE DELIVERY
Choose a delivery method that works best for both you and your tenants. A phone call to tenants might be the best way to deliver information for property managers or landlords with small portfolios, but those with a long list of tenants might find personal phone calls unmanageable.
If a phone call to tenants is not the best or most efficient way for you to deliver information, a simple and effective way to reach all your tenants is by email. Work within your property management software to develop custom email templates that provide information that needs to be distributed to multiple tenants at one time.
You can also schedule a notification within your property management software to send out a reminder to your tenants closer to the effective date of changes or maintenance.
THE MESSAGE
Be straightforward – Be transparent with your tenants, and let them know exactly what is happening. Even though prefacing the situation with positivity can make it easier for you to deliver the news to tenants, you must be clear and concise with your message.
Make sure that you state the facts about what is occurring and when it will take effect. Be clear and empathetic with your messaging, but do not open the conversation up for negotiation or opinions. Tenants must understand that there is a necessary reason behind the bad news, and you aren’t just there to ruin their day.
Provide reasons and benefits – Help your tenants understand how a minor inconvenience with property maintenance now will end up benefiting them later. Let them know you are raising the rent because you need to be competitive with fair market prices, cover increased energy rates or city fees, pay for upgrades approved by tenants, or whatever else may be the case.
Tenants are much more likely to be understanding and agreeable when you are honest and transparent with them. They will understand that at the end of the day, you are operating a business and need to make decisions that make financial sense.
Acknowledge the impact on your tenants – Make your tenants feel like their needs are considered. Changes regarding the property can make your residents feel as if their peace and comfort are the last things you care about, but simple phrasing can change that.
Let them know you understand the burden the bad news places on them. Be honest, and apologize for the inconvenience. You can positively influence your tenants’ reception of bad news by delivering thoughtful notices in a timely manner that convey both empathy and necessity. No one likes bad news, but you can make tenants feel like they are not alone and that their needs are being considered.
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