Running a rental business can quickly become a nightmare if you rent your unit to the wrong kind of people. Dealing with those problem tenants can drive even the most patient landlords to the edge.
If you are currently dealing with problem tenants or would like to avoid such a situation, here is some property management advice that could serve you in the long run.
Check out the five types of problem tenants in the world of real estate and how to deal with them.
Type 1: The Job Hopper
A tenant without steady employment should raise red flags during the screening process. If they’re job hopping or have an unstable source of income, you’ll probably see late payments or an early exit from their lease.
To ensure you don’t have to deal with this problem, you can ask potential tenants to show you their pay stubs for the past 12 months. The past 3 to 4 months isn’t enough because it doesn’t show consistency. Also, call their place of work and confirm their employment with their employers. If an applicant doesn’t have a steady income, you cannot rely on them to pay their rent on time.
Pro tip: Your property manager can set up a screening process to filter out applicants and find the right fit for your rental unit.
Type 2: The Complainer
This tenant is always complaining and never satisfied. They make a million demands and are in no mood to patiently wait while you find an affordable contractor for them. Sometimes, they don’t like to provide any application documents.
They will call you at 3 AM to whine about the AC (even though it’s working just fine), or complain that the water isn’t hot enough, the carpet padding is worn out, and so on.
At some point, you and your property manager have to draw the line and not fall for whiners. You’ve got too many issues to take care of. As a rule, if you’re not legally obligated to deal with the matter, you shouldn’t bother – unless you want to help out.
Type 3: They Really Want to Bring Their Pets In
There’s a reason why some landlords have a strict no-pet policy. Pets, such as dogs, are inquisitive and really couldn’t care less what type of damage they cause. Sure, you could deduct the damages from the tenant’s security deposit, but is this something you want to bother with? Probably not.
In general, if you have a no-pet rule policy and your tenant insists on bringing an animal to the premises, you have a right to issue an eviction notice. And if you do allow pets, you should make periodic inspections at the property to ensure nothing is being damaged.
Pro tip: Some tenants own exotic pets – and they can cause more damage to your house than regular pets. So be ready to create a lease draft that addresses this issue.
Type 4: Evicted Tenants
Just because you want to quickly find a new tenant for your apartment doesn’t mean you should let go of checks and balances. For obvious reasons, you don’t want to lease your rental unit to an evicted tenant. Such a person could damage your property or prove harmful for your business, or even other tenants. This is why it is best to avoid renting your unit to evicted tenants.
A quick look at their credit report should reveal any judgments and eviction histories.
Type 5: Criminals
These tenants are bad news because not only are they risking the lives of their neighbors, but they can also increase your liability for illegal actions. This means that if your tenant is arrested while engaging in illegal activities from your property, you may be held accountable.
The best way to protect yourself is by ensuring a meticulous screening process that includes a thorough background check on all applicants’ criminal histories and public records.
Your lease agreement should have a zero-tolerance policy for illegal activities. If you suspect that your tenants are involved in criminal activities, make sure to alert local law enforcement.
