Tip of the Month - January, 2016


Source: Property Management and Managing Risk
By: Robert C. Kyle & Floyd M. Baird, RPA/SMA

At the onset of each tenancy, the manager should establish a basic understanding with the tenant on all matters relating to the lease terms.  A tenant brochure that outlines all policies and procedures should be given to each new tenant. Procedures for rent collection should be reviewed in detail by the property manager when the lease is signed, and tenants should be impressed with the importance of paying rent on the date due.  The tenant should also be told of the penalties for failure to comply with building regulations.

Maintenance is the single most important factor over which the property manager has control.  A prequisite for enlightened property maintenance is a system for channeling tenant’s service requests to the appropriate parties.  The manager must make certain that the tenant understands the building’s maintenance procedures and the proper division of this responsibility between tenant and owner.  The tenant should be told what areas are covered under the terms of the lease agreement and also how and to whom to make service requests.

RENT COLLECTION: The requirements for prompt payment of rent and the provisions for default should be reviewed when the tenant signs the lease.  The manager should explain in a firm but friendly manner that after a specified time, the tenant will be treated as delinquent and that appropriate legal action will be taken if necessary.  It is vital that the manager follow through on the procedures as explained.

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This web page was updated on 12/27/2016+.