Many property managers and owners of residential real estate are lowering their standards and trying to make it easier for prospective residents to sign that rental agreement. That can be one of those trade-offs that can sometimes disappoint your owner-clients and existing residents.

Yes, it’s still a challenging environment for the property management business because the supply of vacant properties has been increasing over the past few years. And the “axis of power” has shifted more towards the residents.

In property management today “the tenants (residents) have now taken the driver’s seat,” according to a veteran property manager and owner in southern California that I recently interviewed. “We [the property managers] need to tell the owners to work with the tenant and realize it is a ‘tenant’s market.’ I let the owner know that I’m going to be more flexible with residents with the goal of retaining them.”

In other words, as she described it, residents are more likely to shop around for better prices on properties to rent, especially if they are being treated carefully.

She reminded me of another important reality. “The mentality of landlords vs. tenants has changed. Many managers and owners have taken the residents for granted for a long time.” She said she tries to communicate in writing via email more frequently with residents, and when she addresses them she begins by writing “Dear (first name)” to express respect. “I call where they live ‘their home’ vs. “their unit or their apartment.” “I want them to feel that I’m trying to show them respect and treat them like they belong.”

To retain residents and keep them happy, property managers are more careful than ever to respect their privacy. “We give them advance notice as much as possible if we want to inspect their homes. It is our goal to communicate to the residents that we anticipate that they will do the right things and will be living by the rules. It gives them something to live up to and again expresses respect.”

“It’s important,” this seasoned veteran pointed out, “to let the owners know that resident-rights have become more of an issue than ever before. Property managers have less power and a greater need to respect the rights of residents. Residents are more likely to exercise their rights or to find a more respectful, courteous and accommodating owner and property manager.”

When it comes to keeping owners happy, she offered some advice well worth considering. “Owners hire the property management company because they want a professional to manage both the property and the residents. The more a property manager can fulfill that need for owners the more likely the owner will be pleased and want to remain your client.”

Part of the message here is that resident retention is still a big challenge in many areas, especially in places where vacancies are increasing and rents are going down. Meeting the residents needs and reasonable expectations does increase resident retention.

“Residents expect quick responses on requests for repairs and good service. Residents don’t appreciate property managers who cut corners or keep them waiting when requests for service and repairs have been submitted,” she emphatically stated.

To learn more and to keep up with the latest trends, laws and solutions, she suggested that property managers join an apartment or residential rental owners’ association. She claims they are a good source for ideas where you can have your questions answered. Many associations let members email questions and request answers. For reasons she doesn’t quite understand, most owners or their managers don’t belong to the local apartment or residential rental property association. She believes that’s a missed opportunity for help and networking.

One of the biggest advantages of belonging to these associations is how they help owners and managers keep up-to-date on the new laws and regulations. “That,” she insisted, “is perhaps the #1 reason why it’s important to belong to these associations and attend the meetings regularly.”

More owners and residents today are looking for competent, dependable and knowledgeable property managers than ever before. The opportunities for property managers who are creating an outstanding reputation for satisfying the needs of their clients and residents are enormous.

If you achieve a level of excellence, you’re much more likely to keep your existing owners and residents, and, you’ll attract new ones who want what you have to offer.

Related Posts:

1. 6 Tips for Communication Clarity with Your Residents
2. 2 More Ideas on How Property Managers Can Prosper in Today’s Economy: Part 2
3. 4 Quick December Gathering Ideas for Residents