You might have heard the term “Tenant Procurement” which is the term used in the industry for all the activities required to find a tenant for a landlord. In this article I want to take a look at the 8 most important things to discuss with any new Landlord during the “Landlord Procurement” process.
To become a Landlord means adapting to a new role and many Landlords do not understand that there is a difference between being an owner and a Landlord. You see a Landlord actually have limited rights and many obligations with regards to the Property that he owns. The Landlord role therefor adds obligations and limitation of rights.
Moving from a normal owner to becoming a Landlord means adapting to the new role and for the purposes of this article I will call a Landlord who has made the transition, a Rent ADAPTOR. You can use the capitals in the Key Word Rent ADAPTOR as reminder triggers:
- Rent – What the realistic Rental is for the Property and what the major issues are that negatively impact the price for the property. These might include things like security issues, maintenance issues, accessibility issues, etc.
- Application – How the Application Processing process works and how information is compiled to empower the Landlord to make an informed decision. Always remember that if you take this decision out of the Landlord’s hands, you are also taking on a major responsibility on behalf of the Landlord.
- Deposit – How the deposit is managed in accordance with the current Rental Legislation. Very few Landlords even know the basics about the legislation and it is important to ensure that the Landlord understands his obligations and rights when it comes to the management of the Tenant deposit. This is good value add for your agency, but the Landlord will only understand the value if his obligations is explained to him. On a side note, ever wondered what happens to deposits being paid over to Landlords when you do a Procurement Only lease for them.
- Accounts – How you will manage the Municipal, BC Accounts and Maintenance Accounts. Will you be paying accounts on behalf of the Landlord from the Rent? Where will you get the invoices from? Will you be sending copies of invoices to the Landlord?
- Payments – How the Payment Processing and distribution of funds will work on month-end. When can the Landlord expect to receive monies due to him and how will he be notified of such payments made to his bank account?
- Tenant Defaults – What you will do if the Tenant do not pay on due day and how will you keep the Landlord in the loop.
- Occupation – How does this process work and what is required from the Landlord. Does he know that the standard of cleaning set by him would set the bar for what he can expect when the tenant moves out?
- Repair – Maintenance – Who is responsible to repair what and how does this process work? Does the Landlord understand that the Tenant is not responsible for everything that breaks? Does he understand the meaning of wear and tear and what he might be responsible for?
Discussing the above with a new Landlord might just position your agency as a trusted partner in the Landlord’s eyes. Just make sure that you can deliver on the processes explained to the Landlord since this can cause serious mistrust and damage to your relationship with the Landlord if you do not deliver on your promises.