Do Renters Appreciate A Price Reduction?

Jim, one of the biggest mistakes I see Landlords make is allowing the tenant to do some work in exchange for rent. The tenants often do a poor job, or they don't do the work at all, and the Landlord loses the rent money and they still have the maintenance issue. If I let a tenant do work on the property, I pay them directly like I would any contractor. It's much cleaner.

As for keeping rent low, I do that myself on many units. But I keep it 5 - 10% below market. The Landlords I'm referring to tend to be 25 - 50% below market and it hurts them every time.

Sheri Sperry - MCNE® you are absolutely right about the word getting out. When dealing with a multi-family property, you really have to ensure every tenant is treated the same or the word spreads!

Scott Godzyk it's a lot like welfare. They start off appreciating it but before long they expect it and feel entitled to even more. It's the strangest thing.

That's exactly what I would think, Will. Unfortunately, it doesn't happen that way. I can't explain it.

Kasey & John Boles , WOW! I've never had a Tenant sue me or the Landlord! As I've mentioned to others, their line of thinking defies reason. You treat them nice, so they suddenly demand more. I've seen it happen far more times than I can count. As a Property Manager, I run it like a business and expect everyone to abide by their lease every time. It's so much easier!

Debbie Reynolds we do the same. It didn't take long to learn that deviating from policy results in problems. We hold everyone to their lease agreement, we don't waive late fees, we file the 3-day Pay or Quit Notice on anyone with an unpaid balance, etc. It's so much easier on everyone!

Joe Pryor we just run it like a business. If you don't pay your cell phone bill or water bill, they shut you down. Don't pay for your car and the repossess it. Don't pay your rent, we move you out. It's all business.

Lottie Kendall there's nothing wrong with keeping rent a little low to reward good tenants. You don't want to keep it too low because renting it at the lower price will bring in lower-quality tenants and they will treat it like a lower-quality home.

As for maintenance, I only allow tenants to complete work on the home when there is a written agreement in place and it doesn't require a license, permit, or special insurance. Painting is a good example. If I am to pay them for the work, I pay them separately like any contractor and I still expect them to pay rent like normal. It's much cleaner that way.

I'm glad you liked it, Diana White-Pettis . Have a great week!

Bill Carroll I'm glad you enjoyed it. 

I just picked up another rental from a man that rented the home to his son at half the market value. The son paid rent for two months, then hasn't paid rent or utilities for nearly 22 months. The owner has lost over $25,000 trying to help out his own flesh and blood.