Fixer Jay’s Mom & Pop Millionaire Blog

I don’t know about you folks but I’ve stayed mad at my obnoxious tenant for as long as 10 days in a row! I still remember not being able to get some emotional battles outta my head! It’s been quite a few years now - but I still remember how upset I used to get from arguing with a tenant. Naturally, my tenant didn’t occupy my thoughts every single minute of every single day, but it boils down to this — My tenant stole my valuable time! You simply cannot be a productive investor and get things accomplished when you are constantly upset with your tenants.

This is how my MEMOS got their start! I was extremely desperate to find a way to free my mind of tenant problems. We human types can only process one thought in our brain at one time. It’s nearly impossible to have constructive, moneymaking thoughts if you allow your tenants to constantly keep you upset! Believe me when I tell you, the time and money you can lose over emotional tenant confrontations staggers the imagination.

THE LANDLORD’S MIND - IT’S A TERRIBLE THING TO WASTE

Doing business with tenants is what us landlords do. Needless to say, it’s where our money comes from! However, nothin’ says we have to personally go see them for every little issue that pops up! For example; too many guests showing up at their duplex, cars parked on the lawn, habitual late rent payments. Most of these matters involving their tenancy can easily be handled much more efficiently and emotionless with short hand-written memos.

In order to say the right thing - it helps to pretend you are the tenant receiving the memo! How would this memo set with me, you should ask yourself! When I can say to myself, this is a reasonable request and it sounds quite fair, I feel I’m ready to send it to my tenant. I rarely need to waste any time thinking about what I want; I already know what I want! My challenge is to write a memo that my tenant will likely respond favorable to! You must always remember, threatening memos seldom change anything. Your goal is to present a written argument to your tenant making him understand that - he’s much better off to comply with your proposal than if he doesn’t. You must clearly spell out or paint a visual picture of what will likely happen if the tenant ignores your memo. Obviously, tenants are very sensitive to any words that sound like a rent increase might be in their future. We call this “The Hook”.

Allow me to share one of my favorite memos I use for my late paying tenants - I’m trying to convince them to pony up their late fees. This memo enjoys about an 85% success rate.

DEAR TERRY TARDY:

WE NEED YOU HELP!   During the past six months or so, our records show your rents are coming in later and later! This month (Sept.), we didn’t receive your payment (check 9171) until the 13th. Apparently you forgot to add the late fee to your payment! As you know, we allow 5 extra days as a grace period after your official rent due date. Our rental contract shows your rent date is the 1st of each month, but it’s always mailed much later.

Starting immediately, please include the $40 late fee with your rent payment when it’s mailed after the 5th of the month. We use the postmark on the envelope to determine late rents. I hope this sounds fair to you! We’ve found that most of our tenants prefer paying a one time late fee rather than having their regular monthly rent increased! Thanks so much for your help
- Bob, Manager

In this memo, my hook is in the last sentence, which I’m sure you can pick out! Tenants can spot it in a split second - and I will tell you, this is an extremely effective memo for beefing up late fee collections. I might also point out - no tenant has ever called me with questions about this particular memo - it seems, they all understand it perfectly well!
Students who have learned to use my memos wouldn’t trade them for anything. Most claim, once they learn how to design - or create a convincing hook - they work like magic!

Tags: Landlording Success //