The Unofficial Definition of Tenant

Posted: February 1st, 2011  

One quick google search will give us the official definition of tenant. But the relationship between landlord and tenant is deeper than that.

You, a landlord, run a small business. Your property is like your storefront. A tenant collects the month’s revenue and hand delivers it to you. He watches the “store” and notifies you of any potential maintenance problems that could eat away at your asset. He turns out the lights at night, and even pays for your storefront’s utilities.

A good tenant is like a good business manager. A good business manager is someone you never want to let go. On the flip side, a bad business manager can destroy a business.

This is why tenant screening is crucial. Going back to our business manager metaphor, imagine you have an applicant (tenant) for your business with shaky credit, and imperfect rental history, who is willing to pay the full $2300/mo asking rent. Another applicant has spotless credit, income and rental history, but is only willing to pay $2250/mo. The wrong way to think is, “I’m losing $50 every month by selecting the better qualified applicant.” What you should be thinking is, “this ideal business manager is definitely worth me paying $600 more per year to retain.” How many true business professionals would gladly pay 2.2% more to the ideal applicant running their business? I’m sure many would pay even more.

The most successful rental property owners will do what it takes to find the right applicants and, more importantly, maintain those positive relationships.

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