Tenant Loyalty … Can We Really Expect It?

by | Jan 11, 2016

Education

Tenant Loyalty … Can We Really Expect It?

by | Jan 11, 2016

I don’t know about you and perhaps it is my age, but I have noticed a definite decline in workplace attitudes and loyalty. In the past, workers were extremely loyal to the companies they worked for. Today, more often than not that is a thing of the past. The employees of today, for the most part, will not even bother calling to let you know they quit. They just do not show up! I know many are now shaking their heads in agreement, however, when viewed from the other side of the coin, can employers really expect more? Employers today, in most instances, are not loyal to their employees!

Last week, I was told about a person that worked with a major bank in Seattle for over 30 years. His job description did not require new high-tech skills. The bank decided the job could be better performed with some of the newer computer programs now available. Rather than training this thirty-year loyal employee, the bank elected to fire him and replace him with someone already knowledgeable with the required skill set. Nice payback for 30 years of service. Unfortunately, this is not an unusual occurrence and more and more companies show little or no loyalty to their employees. Looked at in this light, it is very easy to understand why generation “x” and “y” have developed attitudes and behavior that does not include loyalty.

How does this phenomenon affect us as landlords and property managers? We all know that turnover is expensive even in the best of circumstances. The obvious thing we all talk about to increase income and reduce expenses is tenant retention. Many articles are written each year on how to do this, however, I believe creating tenant loyalty goes a long way towards accomplishing this goal. How can we accomplish this in a world where loyalty is quickly becoming a thing of the past?

The answer I believe is in promoting loyalty and making sure that the tenant knows we care and are doing so. All of us are raising rents. Usually we are doing so multiple times each year. Typically, I see rent increase letters going out describing the landlords need to do so to cover added costs of operations. Seldom or never do I see “we appreciate your loyalty and as a thank you we are only going to increase your rent by _____.” Perception is everything.

Today, you can buy various items such as small flashlights for very little money. How about gifting your tenants a flashlight or other useful item along with a thank you note for being a loyal tenant. Even a $5 gift card for Amazon or Starbucks will bring a smile to a tenants face and trust me, they will feel great and appreciated when they receive it. Try developing your own “reward” program for loyal tenants. I think you will find it keeps some good tenants in place that you may have otherwise lost to another property. Foster communication and good will and you will be richly rewarded.

There is an old saying that states think and you will become. I like to say, Be, Do, Have. If you become a loyal landlord, you will do what a loyal landlord does, and will have and reap the benefits of what a landlord that has loyal tenants has. Give it a shot. I think you will be pleasantly surprised.

About the Author

Bruce A. Kahn, CCIM, CPMBruce A. Kahn, , CCIM, CPM, Principal, Designated Broker, Foundation Group is a Managing Director of Foundation Group Investment Real Estate Solutions, a full-service property management and brokerage company. He has earned the designation of CCIM (Certified Commercial Investment Member) issued by the CCIM Institute, and is a CPM (Certified Property Manager) with the IREM (Institute of Real Estate Management). For further information or for a property analysis, please contact him at 206-324-9424 or by email.