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Matt and Joshua discuss tenant relations in the video. Joshua is the property manager who deals with both good and bad tenants. They share a story about a problematic tenant who makes noise, does laundry at odd hours, has arguments with her boyfriend, and smokes in the building despite clear rules against it. The boyfriend also lives there without being on the lease, which violates the agreement. They highlight the challenge of dealing with bad tenants and the importance of addressing issues promptly.