Four Ways to Handle Difficult Tenants and Lower their Financial Impact
Property managers like Martin Feinberg understand that a great tenant is gold. Unfortunately, as wonderful as it would be for all renters to be good renters, it doesn’t always happen. It can be difficult for rental property owners to attract high-quality renters. Many rental property owners lack the time and infrastructure to vet perspective tenants. However, even professional property managers can struggle with difficult tenants from time to time.
Problem tenants are those with destructive behavior, poor communication skills, and questionable decision-making. Renters like these can be detrimental to a property’s reputation and also hurt its profitability. However, there are ways to help mitigate and potentially avoid these types of offenders.
While it’s frustrating that these situations are happen, property managers can arm themselves to handle, or even prevent, difficult tenants when they happen.
Tips to Handle Difficult Renters
To help keep renters from racking up a large bill, avoid making special exceptions. Keep a consistent process and always follow the rules and regulations that have been set in place. Always send notices and charge late fees with no exceptions. Communicate with the renter in writing for record keeping and document everything.
2. Owes Rent and Skips Out
When dealing with a renter that left owing money, always know the state’s laws to properly confirm abandonment. Follow all laws and rules on handling abandoned property and re-taking possession. Gather evidence, document the process, and report the tenant to the credit agencies to inhibit repeat offenses.
3. Frivolous Lawsuit Threats
Tenants who are always making bogus claims or threatening lawsuits can be a real headache. Property Mangers who are well versed in Fair Housing Laws, Fair Credit Reporting, and their own lease agreements should be just fine. Document everything in writing and be careful to establish legally appropriate policies and procedures. A good attitude can also go a long way. Stay positive and friendly when dealing with this type of renter. Sometimes that can deescalate a tense situation.
4. Damaged Property
Every so often you have a perfectly good tenant, but who might not be the best in the kitchen. Kitchen fires, or other accidental property damage, can cause a great financial loss. Reliable property managers should always require proof of insurance as a part of all lease agreements. If damage does occur document everything with photos and keep track of all invoices involved in repairing the unit.
Good property managers will have implemented these protocols and preventative processes before a crisis occurs. Having the best tools and practices in place can help avoid difficult tenants. And if one does slip through the cracks, the property management company will be prepared to handle the situation effectively and lessen the negative impact on the rental property owner’s bottom line.