In my previous post, I alluded to the retail concept of customer service and that the adage often used there is some reference to the customer always being right or otherwise bending over backwards to accommodate a customer. In real estate, my version of customer service is a little different. I want to be pleasant and congenial but also exhibit a level of professional authority when necessary.

A ‘the customer is always right’ approach to managing tenants is a recipe for disaster, as is going the extra mile to make a seller happy with your asking price. You can be accommodating, but must still operate according to the principles that will make us successful as real estate investors. Perhaps the best way to achieve this happy medium is to be armed and ready with other concessions that can be offered in lieu of giving up something more fundamental like price or monthly rent.

Recall what I said earlier that Murphy lives everywhere. Unfortunately things do not always go as planned with clients or tenants and problems do come up when you least expect them. The most important thing you can do when problems arise is to first identify the root of the problem. Second, be proactive to solve the problem. The longer you let the problem fester the worse the problem gets and the more it keeps you awake at night. If you are unsure how to solve the problem to a particular situation then get advice from someone who does. No, I’m not referring to your brother. I’m referring to your attorney. Sure you’ll have to pay for this advice but, depending on the problem, it could be cheap insurance to avoid a bigger financial hit down the road.

Another way to look at the customer service issue in real estate is that you aren’t usually dealing with a lot of repeat customers. That’s not to say you should take a rigid stance because of this but look at the facts. If you have a property for sale, you want the ideal buyer and, if you’re marketing it properly, you should have plenty of interest. Why bend over backwards to accommodate one client as if they were your only viable buying prospect? Treat clients equally, in terms of how you approach them, but you can only sell to one and you must make the decision that is best for your business.

To be clear, however, every one of your clients should feel like they are important to you. This is when the mission of customer service as an investor is accomplished. Even if you don’t buy a property from Client X or sell a property to Client Y, their experience in working with you should be a positive one. That gives you a level of professional authority that is unmistakable, especially since your competition will not likely be doing the same thing.