What Is Tenant Onboarding and Why Does It Matter?
In an effort to minimize vacancies, many landlords justifiably attempt to fill their properties as quickly as possible. But it’s not enough to simply find a tenant and let them move in; if you want to minimize issues and improve tenant retention, it’s in your best interest to practice tenant onboarding.
Put simply, tenant onboarding is a series of steps designed to help a tenant move in, acclimate them to this environment, clarify important pieces of information, and set them up for success.
But why is this phase so important and how do you handle it?
The Importance of Nailing the Move-In
Helping your tenants move in successfully with a tenant onboarding session is important for several reasons:
· Making a good first impression. This is an opportunity to make a good first impression with your tenant. Make the property pretty, greet them with a smile, and they’ll associate you and your property with positive feelings. It’s a little thing, but it can make a big impact on tenant retention and conflict resolution in the future.
· Setting expectations. This is also your chance to set expectations. Your lease agreement may set certain rules and requirements, but this is your opportunity to discuss and make sure your tenant truly understands these.
· Highlighting important responsibilities and anomalies. If there are any responsibilities or anomalies associated with your property, this is a great time to disclose them. For example, you can educate your tenant about how to treat the garbage disposal to avoid issues, or teach them the waste disposal rules that apply to them.
· Answering questions and clarifying ambiguities. Not everything in your lease agreement is going to be straightforward or easy to understand. Additionally, your tenant may have preconceived notions about the agreement. This is a chance for both of you to answer each other's questions and clarify any ambiguities that may be present.
· Establishing rapport and communication. Just as importantly, this is an opportunity to establish rapport and good communication habits. If your tenant sees you as affable, approachable, and easy to talk with, they'll be much more comfortable approaching you about issues and much more open to collaborative, congenial resolutions. You're setting the stage for a better tenant landlord relationship.
· Minimizing future conflicts/issues. Some conflicts and issues are unpreventable – but many of them can be proactively prevented. Take some time to predict possible conflicts and address them proactively so you don't have to worry about them in the future.
The Tenant Onboarding Process
There’s some room to develop your own version of the tenant onboarding process, but these are some of the most effective common practices:
· Schedule an in-person meeting. While it's certainly possible to onboard a tenant over a phone call or a virtual meeting, it's typically better to meet in person. Not only is this better for establishing rapport and communicating, but it's also a chance to tour the property together.
· Review the paperwork. Make sure you thoroughly review the lease agreement. Even if it's a boilerplate, easily understandable document, it's a good idea for both of you to review the finer details and ensure mutual understanding.
· Ensure utility transfer. Your tenant may be responsible for transferring the utilities to their name. The tenant onboarding process gives you the opportunity to teach them about this and provide them with instructions for how to complete the transfer.
· Tour and inspect the property. The two of you should tour and inspect the property, taking photos and videos to validate the initial condition. Highlight any noteworthy points and answer any questions along the way.
· Discuss important requirements. If you have any important requirements of your tenant, discuss them now. For example, you may advise them to procure renter’s insurance.
· Provide a welcome package. If you want to make an even better impression, provide a welcome package for your tenant. You can give them a gift basket, a gift card to a local restaurant, some helpful tips for getting the most out of this neighborhood, or anything else you think they'll enjoy. It's an easy way to get the relationship started on the right foot.
· Answer questions. Give your tenant time and space to ask any questions they may have. In fact, you should reach out to them before the onboarding session and encourage them to come prepared with their most pressing questions.
If you don’t like the idea of practicing tenant onboarding yourself, there is an alternative option: hiring a property management company. Your property manager can handle not just tenant onboarding but also property marketing, tenant screening, property maintenance, and much more.
Either way, tenant onboarding is important – and arguably vital for long-term success. It’s the best way to start your new tenant relationship.
