Online Shopping Craze Causing Major Problems for Landlords

by | Nov 23, 2015 | Rental Property Management Tips

The burgeoning desire of tenants to do their shopping online has some landlords literally boxed into a corner, as package deliveries swallow up leasing offices and storage spaces.

According to a news report, some apartment owners are adapting to the onslaught of cardboard boxes by constructing larger mail rooms, providing an appealing amenity for tenants who otherwise fear their packages could be stolen, tenant screeningor equally troubling, that packages won’t be delivered in a timely fashion.

The more progressive landlords are providing text or email alerts so tenants know when their treasures have arrived. That strategy has the added bonus of encouraging tenants to provide the most up-to-date contact information.

However, one major landlord reports that it’s had to put the kibosh on accepting tenants’ packages altogether. That property management company, which oversees 169 buildings, witnessed almost a million packages delivered to tenants in 2014. It recently informed tenants that, from now on, packages will be left on the tenants’ doorsteps.

Tenants are not taking well to the change. Some have decided to break their leases over the new policy, and others have refused to renew.

The managers argue they had no choice, according to the report. Each package required ten minutes of workers’ time. That adds up to $3.3 million.

Steps have to be taken to analyze a landlord’s bottom line when adding more service. Strategies like extending office hours or hiring more workers in order to create a make-shift mail room for tenants to retrieve packages come at a cost. Still, those costs may be overcome by tenant satisfaction. Not only will new tenants love the service, but existing tenants are more likely to stay if they are happy.

The best strategy for now is to plan quickly: major shopping days are just around the corner. Beyond that, it is likely landlords will continue to see an influx of packages. Shopping online just may be a new way of life for tenants — and that makes accommodating an avalanche of packages a priority for landlords.

This post is provided by Tenant Verification Service, Inc., helping landlords reduce the risks of renting with fraud prevention tools that include Tenant Screening, Tenant Background Checks, (U.S. and Canada), as well as Criminal Background Checks, and Eviction Reports (U.S. only).

Click Here to Receive Landlord Credit Reports.

Disclaimer: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.

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