Tenant Exit Interview
When a good tenant declines to renew his lease, should a landlord ask why? Possibly a more important question for the landlord is to ask is what could have been done to retain the tenant. The good tenant who is leaving was a tenant qualified to rental standards, wanted to be a tenant, and fulfilled his tenant responsibilities. A landlord should be a little curious why the tenant decided to move. There are many reasons why a tenant decides to move on rather than renew; e.g., job opportunities, family matters, etc., but if the tenant is moving across town to another rental, there can be more to the story. No landlord wants to be caught off guard by something he didn’t know about his property but everyone else does.
There is a greater issue of landlord responsibility to provide a duty of care for his tenants to help protect their safety and security. If good tenants are leaving, good tenants that the landlord expected to renew, there is an obligation to determine whether there are reasons to be concerned about the non-renewal. If there are issues that materially affect the habitability and livability of tenants, a landlord has obligations to addresses those issues and take action to remedy problems. The landlord’s actions can prevent unnecessary future turnovers, and help ensure replacement tenants are protected.
A tenant who has made his decision to move rather than renew may provide straightforward feedback in answering the landlord’s questions during an exit interview. This is a good opportunity to turn a possible negative business impact into a positive opportunity for business improvement.
Asking for feedback from tenants who are not renewing is a good business practice to help improve and strengthen property operations. A potential downside to conducting an exit interview can be that the departing tenant declines to interview. That, itself, may provide some indirect feedback that a review of property operations might be in order. A landlord owes an obligation to his business to take all constructive measures to better his business. Although the exit interview should be a practice included in the landlord’s move-out procedures, a landlord should still respect a tenant’s wishes to not participate in an interview. The landlord could offer an alternative, such as a printed survey form, by which the tenant could communicate comments and concerns in a manner and environment that is safe and non-threatening.
A landlord should keep in mind that during an exit interview there can be unfavorable comments made about a number of issues, including comments about the landlord that could be taken personally. A tenant could use the interview as a forum to give a recital of complaints about neighbors, noise, or housekeeping items. There can be issues that a landlord can do something about as well as some issues that are out of the landlord’s control. The key, as for any interview, will be to remain professional, listen carefully, and not become defensive or take a retaliatory action. The purpose of a tenant exit interview is to obtain feedback from the tenant on how to improve the rental property operations to attract and retain good tenants.
While information gained from the exit interview may be too late to retain that particular tenant, the information can be used to prevent a future tenant from experiencing the same or similar problem.
In developing questions for a tenant exit interview, a landlord is expanding on the standard question “why are you leaving?” The following questions are suggestions of questions that might provide valuable feedback on the rental property, property management, administrative staff, and rental services and amenities. A landlord will need to develop his own questions relevant to his business needs and the particular property.
What is your primary reason for moving?
While this is the obvious question to ask, generally a tenant who doesn’t choose to renew his lease has specific reasons for his decision. There can be many factors that influence a moving decision, but a landlord is concerned with the main motivation to move; as examples, rents, repairs, neighbors, noise, etc. Is the reason something the landlord should have been aware of? If the landlord was aware of an issue, did the landlord fail to address the issue? If the issue is with the property operations, and the landlord was unaware of the issue or its effect on property management, the tenant’s answer is to the benefit of all. It’s better for a landlord to find out sooner than later when there are problems. If the landlord can take control of the issue, the next tenant may be a tenant who wants to renew.
Are you moving to another rental community in the area?
This is a general question asked only to determine if the move is a local move or out of the area or state. A local move may be an indication that the landlord needs to conduct a current market review of his competition.
Are there other reasons that influenced the decision to move?
Are there other areas of concern that haven’t been mentioned of which the landlord should be made aware?
How did you find your new place?
If the tenant is moving to a different rental complex in the local area, this answer may provide the landlord with information regarding placement of future advertising.
What did you like about living here?
The tenant’s answer could be a feature of the chosen new unit; e.g., much more closet space, or as simple as the location is closer to work. The information might be useful for future advertising purposes.
Is there something that you didn’t like about living here?
The answer could be a surprise. It could be something that a landlord could easily remedy for future tenants by replacement or upgrades such as kitchen appliances or plumbing fixtures. It could be something else entirely and the landlord has no control over the issue. Different tenants will have different likes and dislikes.
By asking questions about likes and dislikes, the landlord can assess the strengths and weaknesses of the physical property, the property management, and the relationship between tenants and the administrative support staff.
Do you consider the rent is a fair rent for this unit/area?
This gives the landlord an idea of whether or not this tenant believes the rent is reasonable in comparison to similar properties. A landlord may also hear that a tenant’s friends are getting a better deal somewhere else. If the landlord did his research and compared rent for similar properties to determine an average rent in his area, he will be able to evaluate whether the rent rate is an issue of concern. If additional turnovers occur and rent is cited as an issue for the move-out, a landlord may need to revisit his rental pricing versus current market rents.
How would you describe your experience while renting here?
The tenant’s answer provides the landlord with information how his property and management is viewed by the tenant and how the tenant might communicate his satisfaction of the rental to his friends. Positive word of mouth referrals particularly from a good tenant are important to the landlord for future good tenants.
What would you change in the unit to make it more livable?
This gives a landlord ideas and suggestions for potential areas for upgrades or improvements.
What could have been offered that would have convinced you to renew the lease?
The tenant may share his rental criteria or provide information on his new rental that he thinks will be a better choice. If the new rental contract has not yet been accepted and the tenant is receptive to negotiating with the landlord for the current unit, the landlord should be prepared with his best renewal offer to present to the tenant.
Would you rent from us again?
The answer can be a confirmation of a satisfactory landlord-tenant relationship or a possible incentive to review business operations.