A few of you have talked about communication on here before, but today I wanted to talk about communication issues and the problems they can cause.
I had a landlord friend once who swore blind that the more effective form of communication he had with his tenants was on the phone. He felt it added a more personal touch to their relationship and that they respected him more for it.
Yet like all of us at some point, he came across a tenant who took advantage of the fact that he communicated by phone to get around issues of rent and their eventual eviction.
The tenant claimed when the issue finally went to court that my landlord friend had never been in contact with him about his rent being overdue, and as you can imagine, this created a tonne of problems, the main one being – lack of evidence.
He couldn’t prove that his tenant had taken the calls nor could he prove what they had talked about when he finally found his phone records. So instead of getting his rent paid and the tenant out, his case got dismissed and he had to go back to the beginning of the eviction process and formally send his tenant a rental arrears letter etc.
Now don’t get me wrong. I think there is nothing wrong with chatting to your tenant on the phone, especially when it comes to maintenance issues and repairs on the property. But I also think it is important to keep a written record of all your correspondence.
This saves a load of hassle over the long term and prevents any disputes from your tenants.
Take the following scenario. Here is how I would handle it to ensure the best interests of the landlord and the tenant.
Scenario One: Overdue rent
Note: I would also give them a call to see if they are having problems. If they are struggling to find the rent, I would make an arrangement with them, but get this confirmed and dated in writing (as well as signed and witnessed) as to prevent any further problems.
Yes you may think this is extreme, but believe me if they then claim you never made this arrangement, how can you prove it?
Note: on all letters you send, it is important that they are dated and that you use recorded delivery as this will provide you with a clear record that your letter has been received by the tenant and when they received them.
See what I mean? Clear communication is key and can’t just be verbal, otherwise you’ll open yourself up to a tidal wave of problems.
But this is not all you need to keep an eye on…
When keeping written communication with your tenant it is also important to do the following:
Even if you are using a property agent, and don’t want your tenant knowing your address, it is important during the eviction process that your home address it up to date.
Now I am not claiming all tenants are going to try to ‘do you over’ when issues arise, but honestly, what would you prefer – clear communication free of potential complications? Or the minute chance that your tenant will take advantage of you not following procedure, and instead leave you without rent for months on end?
It took my friend over 6 months before he finally got rent from this tenant. 6 months of no profits or being able to find a replacement tenant for the property.
So seriously before you make your phone your new best friend, be sure as a landlord that there is no room for error and that all your communications can easily be recorded and documented. It is better to be safe than sorry, believe me.
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