The Hidden Costs of Poor Tenant Relations for Property Managers

Why Tenant Relations Matter

Tenant turnover can cost anywhere from $1,000 to $5,000 per unit, covering expenses like advertising, cleaning, repairs, and screening new tenants. Many of these costs stem from issues that could have been avoided with stronger tenant relations. Poor communication, delays in addressing concerns, or making tenants feel unheard can cause more than just frustration. They directly impact a property manager’s bottom line, increase workload, and can damage the property’s reputation in the long run.

Tenant relations are not just about being polite or friendly. They are the foundation of a property manager’s success. When communication breaks down or tenants feel undervalued, the effects go far beyond a single complaint. Poor tenant relations create hidden costs that drain both time and resources.

Higher Turnover Rates

When tenants feel ignored or undervalued, they are less likely to renew their lease. Every time a tenant leaves, property managers face turnover costs such as advertising, cleaning, repairs, and the time spent finding and screening new tenants. Strong tenant relations reduce these expenses by keeping tenants satisfied and willing to stay longer.

Practical Tip: Regular check-ins, newsletters, or even a quick follow-up on maintenance requests show tenants that they matter.

Negative Word of Mouth

Unhappy tenants often share their experiences with friends, family, and online platforms. Poor reviews can discourage potential renters and make it harder to fill vacancies. On the other hand, satisfied tenants often become advocates who recommend the property to others.

Sample Script:
“Thank you for letting us know about the issue with your sink. We’re glad our team was able to resolve it quickly. If you’re happy with the service, we’d really appreciate it if you could share your experience in a Google review.”

More Maintenance Headaches

When tenants feel they are not listened to, they may delay reporting problems. A simple issue like a leaky faucet can grow into a costly repair if it is not addressed early.

Practical Tip: Encourage tenants to report issues right away by reassuring them that their concerns are welcome.

Sample Script:
“If you notice anything that isn’t working properly, even if it seems small, please report it right away. The sooner we know, the quicker and easier it will be to fix.”

Increased Workload for Managers and VAs

Property managers and their virtual assistants spend more time putting out fires when tenant relations are poor. Misunderstandings, repeated complaints, and disputes take away valuable hours that could be spent on proactive management or growth-focused tasks.

Practical Tip: Create clear systems for communication and follow-ups. A VA can help by sending timely updates so tenants feel informed.

Damage to Trust and Community

Poor tenant relations harm the sense of trust within a property. Tenants who feel dismissed are less likely to care for the property or cooperate with management.

Practical Tip: Be transparent. If there are delays or challenges, explain them honestly.

Sample Script:
We understand that this delay is inconvenient, and we want to keep you updated. The repair team will be on-site tomorrow morning, and we will notify you as soon as the work is completed.”

The Bottom Line

Poor tenant relations carry hidden costs that can drain resources and damage a property’s reputation. By investing in open communication, timely responses, and consistent follow-through, property managers and their assistants can save money, reduce stress, and build long-lasting tenant loyalty.

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