Landlords who rent a space in their home join the off-campus housing industry for a variety of different reasons: additional income, companionship, assistance with chores, property maintenance delegation, or simply just to be supportive of colleges and universities in their community. Regardless of the reason, it is still a business. Landlords should operate their rental business the same way a property management company does with high-rise apartment building rentals.

The age-old question remains: where is the line drawn on business ethics? Below are a few reasons why doing what is right is the most profitable and favored choice for an off-campus housing business.

Reputation

• In today’s society, information can be accessed at the touch of a finger. A study was conducted by the eCommerce Foundation that states 88% of consumers pre-research their buys online before making a purchase.
• Word of mouth is one of the most effective marketing tools today and review sites, such as Yelp, bring that median to a whole new level.
• Making the conscious decision to do the right thing will not only begin the conversation, but also drive a positive narrative.

Product Integrity

• For positive reviews, the product needs to live up to the hype, especially in the rental industry.
• Pintar Investment Co., a property management company, found that tenants will reward careful renovations with longer stays and higher rent.
• If a high ROI is what’s important, making the best property maintenance choices is a great way to receive it.

Set High Expectations

• Maintaining high product integrity allows expectations to be set higher.
• A phenomenon known as the Pygmalion effect reveals that when expectations are set high for a product or service, tenants strive to meet the same.
• The Business Insider put out an article that directly speaks to the notion that what is expected from others can often become a reality.
• Tenants will be more inclined to do their best, if they know that their landlord operates with their best interest in mind.  

Build Trust

• When it comes to any major decision, especially deciding to sign a rental agreement, trust plays a huge part. A lease closing can be derailed when a consumer comes to the realization that they have no trust in the person or the product they are dealing with.
• Figuring out how to gain trust, and keep it, can be a hard issue to navigate in today’s world. But making a choice to do what is right – regardless – can help start that journey on a positive step.

Lower Stress

• On top of directly affecting a rental business, doing what is right also directly impacts the personal life of everyone involved, particularly their stress levels.
• According to an article from Mood Disorders Society of Canada, absenteeism at work due to stress has gone up by over 300% since 1995; and as a result, absenteeism costs an average of $3,550 per employee per year.
• Knowing the affects stress can have emotionally and financially, it should serve as a catalyst for doing the right thing where tenants and employees are concerned.

SEE ALSO: Good Customer Service in the Off-Campus Housing Industry