Connect with us

Politics

How to Attract and Retain Reliable and Trustworthy Tenants – ReadWrite

Published

on

Frank Landman


Every landlord dreams of having long-term, reliable, trustworthy tenants who pay rent on time and in full. An even bigger dream is having tenants who clean up properly before moving out and leave all necessary repairs to the professionals.

Ideally, the dream is to secure honest tenants who don’t hide details that would change their lease terms. For instance, tenants who run a home-based business are more likely to cause damage in the process of making their goods. For this reason, many leases prohibit tenants from running a home-based business. Some tenants will hide their business, while others will be upfront and honest.

While securing great tenants with integrity is just a dream for many landlords, it can be your reality by employing the following strategies.

1. Set the tone for your relationship on day one

From the very first interaction you have, you are training your tenants how to be with you. If you want your tenants to honor their lease terms, you need to set the bar extremely high from day one.

For example, the first time you interact with a tenant will probably be a phone call asking if a unit is available or perhaps they’ll just submit an application online. Make these small interactions count. Be professional rather than casual and be firm with anything you tell prospective clients about rent prices, deposit amounts, rules, and cleaning fees.

If establishing a strict relationship with your tenants is difficult, hire a property management company. You won’t have to worry about anything. They’ll screen, select, and onboard tenants for you and they’ll handle all of their needs like maintenance and repairs.

2. Hold clients responsible for being on time

Not acknowledging when a tenant is late for a meeting will set a tenant up to feel comfortable with paying rent late. The truth is, most people are conditioned to be perpetually late. They don’t like to make or follow through with commitments. They want to maintain control to relax their way through life and do things on their terms.

Don’t set your tenants up to be lax about anything. Make sure they know you mean business. For instance, say you schedule a walkthrough from 2-2:30pm. Tell your prospective tenant ahead of time that being late will cut into the time available for the walkthrough and follow through. If they don’t show up until 2:15, don’t give them any extra time.

If you start making exceptions in the beginning of your relationship, even before someone becomes a tenant, you’ll train that person to know they’ve got wiggle room with your deadlines. This can result in all kinds of problems including using the laundry room after hours, blasting loud music late at night, paying rent late, and expecting to have late fees waived.

3. Reward tenants for amazing behavior

There are always fees and punishments for bad behavior, but what about good behavior? Find ways to appreciate good tenants. For example, if a tenant pays rent on time every month for 6 months, give them a $50-$100 discount on their 7th month.

A discount will be an incentive for them to continue paying on time. After a year of on-time payments, you could renew their lease at a discount for the entire year to come.

You could also reward tenants with a month of free parking, or a $20 gift card to Starbucks. The rewards you provide for your tenants are up to you. However, most landlords don’t reward their tenants, so even small efforts will be greatly appreciated.

When your tenants feel appreciated, they’ll be more likely to stick around even if they find a cheaper place to live.

4. Set your credit and income qualifications high

Some tenants with lower income can easily afford rent because they don’t have many bills. However, that’s not always the case. Since you can’t verify exactly how a tenant spends all of their money, it’s best to set high credit and income qualifications.

The standard minimum for credit scores is 650. Most landlords will not accept tenants with a score under 650. However, you can set the bar a little higher if you want.

When it comes to income, you want tenants who earn at least three times the monthly rent. You need to make sure your tenants have enough income to pay for their car, car insurance, cell phone, utilities, cable, internet, credit card bills, student loans, and whatever additional debts most people have today.

You will find tenants who are exceptions to these rules. There are people who don’t play the credit game and don’t have any debt, but consider those people on a case-by-case basis and only advertise your high standards. If someone really wants to live in your unit despite not having credit or 3x the rent as income, they’ll contact you to discuss their situation.

5. Cover utilities if possible

Including utilities in the rent is a controversial move that many landlords advise against. Tenants who know their landlords cover utilities are more likely to let space heaters, central heaters, and A/C units run all day and night. There’s no incentive to monitor or conserve their usage.

However, covering utilities can give tenants the certainty they need to feel financially stable. Some tenants function better when they know exactly how much their bills will be each month.

Although it’s controversial, there’s a way to make it work. The first thing you need to do is include a clause in the lease that allows you to start billing tenants for abusing utilities. This is easiest when you’re renting single-family homes because you can hold tenants accountable for the electricity they use.

Apartment buildings, condos, and some townhomes don’t have separate meters for each unit so it’s hard to set parameters for what constitutes abuse. For example, if you own an apartment complex with 20 units, you’ll never know if one family is running up your monthly electricity bill by $500 while everyone else is using around $200.

While it’s a great strategy for creating happy tenants, use your discretion when covering utilities in the rent.

6. Don’t spy on your tenants or use smart devices against them

While smart home devices can be convenient, use them with caution. Tenants want convenience, but not at the cost of sacrificing their privacy. An ADT survey found that 93% of consumers are concerned about how their data is being used.

Recently, several landlords have been in the news for attempting to force tenants to use smart security systems to enter the building and access their mailbox. Tenants felt like facial recognition software was a violation of privacy. Other tenants opposed the idea of smart locks because the electronic key fob was also a tracking device.

Although there is no federal law prohibiting landlords from using smart surveillance and keyless entry systems, the courts have been ruling in favor of concerned tenants.

If you’re going to install smart home devices and security systems, make sure you know where your tenants’ data is going. If the device manufacturer collects that data and sells it to marketers, you should skip that device to protect your tenants’ desire for privacy. Your tenants will appreciate you using only the smart devices and services that don’t sell their data.

7. Let your tenants know you won’t use smart devices against them

There have been landlords who have used smart locks to lock tenants out of their house for not paying rent. Some landlords have even used apps to prevent tenants from using their thermostat to turn on the heat or air conditioning.

Make sure you tell your tenant that you’re providing smart devices for their convenience and that you’re not going to use it against them. Technically, it would be illegal for you to prevent a tenant from accessing their home or thermostat, but since some landlords ignore the law, many tenants are afraid to rent homes that employ these smart devices.

You can earn a whole lot of trust from a tenant by eliminating their fears surrounding smart home devices.

Create good communication with your tenants

The ultimate way to attract and retain reliable and trustworthy tenants is to maintain good communication. When a tenant contacts you with a request, reply as soon as possible, even if only to let them know you’ll get back with them when you have a solution. Good, clear communication is one of the most effective ways to retain your best tenants.

Frank Landman

Frank is a freelance journalist who has worked in various editorial capacities for over 10 years. He covers trends in technology as they relate to business.

Politics

Fintech Kennek raises $12.5M seed round to digitize lending

Published

on

Google eyed for $2 billion Anthropic deal after major Amazon play


London-based fintech startup Kennek has raised $12.5 million in seed funding to expand its lending operating system.

According to an Oct. 10 tech.eu report, the round was led by HV Capital and included participation from Dutch Founders Fund, AlbionVC, FFVC, Plug & Play Ventures, and Syndicate One. Kennek offers software-as-a-service tools to help non-bank lenders streamline their operations using open banking, open finance, and payments.

The platform aims to automate time-consuming manual tasks and consolidate fragmented data to simplify lending. Xavier De Pauw, founder of Kennek said:

“Until kennek, lenders had to devote countless hours to menial operational tasks and deal with jumbled and hard-coded data – which makes every other part of lending a headache. As former lenders ourselves, we lived and breathed these frustrations, and built kennek to make them a thing of the past.”

The company said the latest funding round was oversubscribed and closed quickly despite the challenging fundraising environment. The new capital will be used to expand Kennek’s engineering team and strengthen its market position in the UK while exploring expansion into other European markets. Barbod Namini, Partner at lead investor HV Capital, commented on the investment:

“Kennek has developed an ambitious and genuinely unique proposition which we think can be the foundation of the entire alternative lending space. […] It is a complicated market and a solution that brings together all information and stakeholders onto a single platform is highly compelling for both lenders & the ecosystem as a whole.”

The fintech lending space has grown rapidly in recent years, but many lenders still rely on legacy systems and manual processes that limit efficiency and scalability. Kennek aims to leverage open banking and data integration to provide lenders with a more streamlined, automated lending experience.

The seed funding will allow the London-based startup to continue developing its platform and expanding its team to meet demand from non-bank lenders looking to digitize operations. Kennek’s focus on the UK and Europe also comes amid rising adoption of open banking and open finance in the regions.

Featured Image Credit: Photo from Kennek.io; Thank you!

Radek Zielinski

Radek Zielinski is an experienced technology and financial journalist with a passion for cybersecurity and futurology.

Continue Reading

Politics

Fortune 500’s race for generative AI breakthroughs

Published

on

Deanna Ritchie


As excitement around generative AI grows, Fortune 500 companies, including Goldman Sachs, are carefully examining the possible applications of this technology. A recent survey of U.S. executives indicated that 60% believe generative AI will substantially impact their businesses in the long term. However, they anticipate a one to two-year timeframe before implementing their initial solutions. This optimism stems from the potential of generative AI to revolutionize various aspects of businesses, from enhancing customer experiences to optimizing internal processes. In the short term, companies will likely focus on pilot projects and experimentation, gradually integrating generative AI into their operations as they witness its positive influence on efficiency and profitability.

Goldman Sachs’ Cautious Approach to Implementing Generative AI

In a recent interview, Goldman Sachs CIO Marco Argenti revealed that the firm has not yet implemented any generative AI use cases. Instead, the company focuses on experimentation and setting high standards before adopting the technology. Argenti recognized the desire for outcomes in areas like developer and operational efficiency but emphasized ensuring precision before putting experimental AI use cases into production.

According to Argenti, striking the right balance between driving innovation and maintaining accuracy is crucial for successfully integrating generative AI within the firm. Goldman Sachs intends to continue exploring this emerging technology’s potential benefits and applications while diligently assessing risks to ensure it meets the company’s stringent quality standards.

One possible application for Goldman Sachs is in software development, where the company has observed a 20-40% productivity increase during its trials. The goal is for 1,000 developers to utilize generative AI tools by year’s end. However, Argenti emphasized that a well-defined expectation of return on investment is necessary before fully integrating generative AI into production.

To achieve this, the company plans to implement a systematic and strategic approach to adopting generative AI, ensuring that it complements and enhances the skills of its developers. Additionally, Goldman Sachs intends to evaluate the long-term impact of generative AI on their software development processes and the overall quality of the applications being developed.

Goldman Sachs’ approach to AI implementation goes beyond merely executing models. The firm has created a platform encompassing technical, legal, and compliance assessments to filter out improper content and keep track of all interactions. This comprehensive system ensures seamless integration of artificial intelligence in operations while adhering to regulatory standards and maintaining client confidentiality. Moreover, the platform continuously improves and adapts its algorithms, allowing Goldman Sachs to stay at the forefront of technology and offer its clients the most efficient and secure services.

Featured Image Credit: Photo by Google DeepMind; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

Continue Reading

Politics

UK seizes web3 opportunity simplifying crypto regulations

Published

on

Deanna Ritchie


As Web3 companies increasingly consider leaving the United States due to regulatory ambiguity, the United Kingdom must simplify its cryptocurrency regulations to attract these businesses. The conservative think tank Policy Exchange recently released a report detailing ten suggestions for improving Web3 regulation in the country. Among the recommendations are reducing liability for token holders in decentralized autonomous organizations (DAOs) and encouraging the Financial Conduct Authority (FCA) to adopt alternative Know Your Customer (KYC) methodologies, such as digital identities and blockchain analytics tools. These suggestions aim to position the UK as a hub for Web3 innovation and attract blockchain-based businesses looking for a more conducive regulatory environment.

Streamlining Cryptocurrency Regulations for Innovation

To make it easier for emerging Web3 companies to navigate existing legal frameworks and contribute to the UK’s digital economy growth, the government must streamline cryptocurrency regulations and adopt forward-looking approaches. By making the regulatory landscape clear and straightforward, the UK can create an environment that fosters innovation, growth, and competitiveness in the global fintech industry.

The Policy Exchange report also recommends not weakening self-hosted wallets or treating proof-of-stake (PoS) services as financial services. This approach aims to protect the fundamental principles of decentralization and user autonomy while strongly emphasizing security and regulatory compliance. By doing so, the UK can nurture an environment that encourages innovation and the continued growth of blockchain technology.

Despite recent strict measures by UK authorities, such as His Majesty’s Treasury and the FCA, toward the digital assets sector, the proposed changes in the Policy Exchange report strive to make the UK a more attractive location for Web3 enterprises. By adopting these suggestions, the UK can demonstrate its commitment to fostering innovation in the rapidly evolving blockchain and cryptocurrency industries while ensuring a robust and transparent regulatory environment.

The ongoing uncertainty surrounding cryptocurrency regulations in various countries has prompted Web3 companies to explore alternative jurisdictions with more precise legal frameworks. As the United States grapples with regulatory ambiguity, the United Kingdom can position itself as a hub for Web3 innovation by simplifying and streamlining its cryptocurrency regulations.

Featured Image Credit: Photo by Jonathan Borba; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

Continue Reading

Copyright © 2021 Seminole Press.