What are the types of bad tenants?

During your time as a landlord, here are the different types of bad tenants you might encounter: Tenants who don't pay rent on time (or at all), tenants who cause damage to your rental property, tenants who are bad neighbors, tenants who don't follow pet rules, tenants who sublet without permission, tenants who refuse to leave, and tenants who break the law.

How do I become a landlord?

Here is your guide on how to become a landlord: understand rental laws, invest in property, get insurance, advertise, set the right rental rate, screen tenants, draft the lease agreement, collect rent, maintain the property, and keep records.

Avoiding Bad Tenants At All Cost

Q: How do you deal with bad tenants?

First, you must evaluate the situation and determine whether your intervention is required. If you must step in, remember to stay calm and never let your personal biases cloud your judgment. You should take the time to understand your tenant's point of view, too. Additionally, you must learn to document everything — from your communication efforts to rental inspections. If a tenant takes part in criminal acts, report them to the local authorities. You can also ask a tenant to voluntarily move out. If all else fails, start the eviction process.

Q: Can you evict a tenant for bad behavior?

Only if what you describe as 'bad behavior' violates the terms of the lease. Otherwise, you can't legally evict a tenant if you just find them rude or annoying.

Q: What makes a bad tenant?

It depends on what qualities you, as a landlord, consider as bad. Some landlords think loud tenants are bad, while others have no problem with them. Generally, though, most landlords agree that a tenant who consistently pays rent late is bad.

Q: When is it right to evict a tenant?

Some landlords utilize a 'cash for keys' agreement, paying their tenant in exchange for their compliance to move out. If a tenant refuses to leave, though, you always have the option of evicting them. There are also other reasons to initiate an eviction, such as a tenant harassing the landlord, a tenant partaking in illegal acts, or a tenant violating the lease. If you want to evict a tenant, you need to file eviction papers in court.

Posted on 2016/11/042022/01/31 by admin

Bad tenants are a dime a dozen and every landlord’s worst nightmare. The good news is you can learn to avoid and deal with these tenants, thereby protecting your investment and saving yourself the headache.

What Are Bad Tenants?

Bad tenants exist everywhere, and they can make your work as a landlord unbearable. These tenants give you a hard time with just about anything — from collecting rent to making repairs on your rental property. Because of their terrible behavior, you might even receive countless complaints about them from their neighbors.

What makes a bad tenant? It depends on what qualities you consider as bad. Some landlords think loud tenants are bad, while others have no problem with them. Generally, though, most landlords agree that a tenant who consistently pays rent late is bad. If you find yourself Googling “how to make tenants uncomfortable,” then there’s a good chance you have a bad tenant problem.

Types of Bad Tenants

During your time as a landlord, here are the different types of bad tenants you might encounter:

Tenants Who Don’t Pay Rent on Time (or at All). This is one of the most common landlord tenant issues. When tenants fail to pay rent on time, in full, or altogether, they’re definitely bad.
Tenants Who Cause Damage to Your Rental Property. Some tenants intentionally inflict damage to your rental property, while others are just negligent or careless.
Tenants Who Are Bad Neighbors. You know the type — these tenants throw loud parties, have pungent odors coming from their unit, or are just generally rude.
Tenants Who Don’t Follow Pet Rules. If you have pet restrictions, you can bet these tenants will ignore them.
Tenants Who Sublet Without Permission. Subletting your property to another renter without obtaining permission is usually a violation of the lease agreement. Poor screening can also result in a bad tenant.
Tenants Who Refuse to Leave. These tenants stay in the unit even after the lease expires. In other words, they’re squatters.
Tenants Who Break the Law. These tenants engage in or promote criminal activity, which can put you at risk of liability.

How to Avoid Bad Tenants

How do you protect yourself from a bad tenant? The best way to protect yourself from an awful renter is to avoid renting to one in the first place. You can do this by adopting some stringent requirements and processes, such as:

1. Use a Rental Application

During the tenant search and screening process, ask interested renters to completely fill out an application form. A rental application form will let you collect essential information, including but not limited to their employment history, rental history, and their reason for moving. It’s a bad sign if they can’t offer sufficient information, especially in the case of employment and prior residences.

2. Ask for a Security Deposit

Property damage is one of the biggest landlord problems when it comes to poor tenants. And, sometimes, you don’t even find out about the damages until the tenant decides to move out. Thankfully, you can avoid issues with payment by asking for a reasonable security deposit.

Make it clear to tenants, though, that the security deposit isn’t meant to cover rent. Some tenants believe that landlords can just dip into the security deposit in case they’re behind on rent and can’t pay. The security deposit exists to address any damages upon move-out.

3. Screen Tenants Thoroughly

Make it a part of your screening process to check the following:

Credit score. Running a credit check on your tenant ensures that they’re in good financial standing. Some landlords even require a minimum credit score of 600 to 620 to approve a tenant.
Employment history/status. Verifying a tenant’s source of income lets you know that they have the means to pay rent. It’s also worth calling their current and past employers to gain insight into their character.
Rental history. Contacting past landlords is a great way to learn what to expect from a prospective renter. Make sure to ask whether the tenant paid rent on time, damaged the property, has been evicted, or violated the lease in any way.
Criminal history. A criminal record is often a red flag, but you should be careful about denying applicants just because they have a history. Under fair housing laws, you can’t have a general policy against applicants with any type of criminal history. Instead, you can deny applicants with specific records that could put the safety of other tenants at risk.

It’s a good idea to outsource comprehensive background checks to tenant screening services. These services usually have access to your local bad tenants list, also known as a tenant blacklist, which uses court data to identify any tenants who previously ended up in housing court.

4. Write a Strict Lease

An ironclad lease agreement will help you avoid problem tenants. Include all the policies you have about your rental property, including restrictions on pets, smoking, vehicles, guests, and the like. You should also outline what consequences a tenant can expect if they break the lease. If you have no legal background, it’s best to consult an attorney for this.

How to Deal With Bad Tenants

It’s one thing to avoid bad renters, but what if you’ve already got on as a tenant? If a tenant has managed to slip through the cracks of your screening process, you have no choice but to deal with them.

It’s never a good idea to retaliate against your tenants by increasing their rent or refusing to make repairs. That kind of retaliatory action is illegal in most states. Instead of learning how to get revenge on bad tenants, you should know how to deal with them properly and legally instead.

How do you deal with bad tenants? Let us count the ways:

1. Evaluate

Before you start researching sneaky ways to get rid of bad tenants — which is morally (and perhaps legally) wrong, by the way — you should first evaluate the situation. If you’re receiving complaints from neighbors about a tenant’s behavior, look at it from different perspectives. Perhaps the problem doesn’t even demand that you step in. It might just be a personal neighbor-to-neighbor dispute that requires no intervention from you, the landlord.

2. Stay Calm

When you fly off the handle, you immediately lose control of the situation. Remember that communication is key when it comes to dealing with the worst tenants. Hear them out, and then explain your side of the story. Never let your personal biases cloud your judgment. It’s all part of cultivating a good working relationship with your tenant.

3. Be Kind

Some tenants don’t start out as bad but seemingly end up that way because of some personal or financial troubles. Beyond listening to your tenant, you should also try to understand them. Perhaps they’re a month behind on rent because they just lost their job and are struggling financially. In that case, try to set up a partial payment plan so they can have some wiggle room.

Of course, there is such a thing as being too kind. You can’t let tenants think that they can walk all over you. To avoid this, make it clear in your lease agreement that you can only offer partial payment plans once a year.

4. Document Everything

Proper documentation is imperative when you’re a landlord, especially in case you need to go to court. Make sure all communications are in written form. Send notices via mail so that there’s concrete proof. You should also record all property inspections, in written and photographic form, and obtain the tenant’s signature to signify their agreement.

5. Contact Law Enforcement for Criminal Behavior

Some tenants might partake or promote illicit acts, such as drug use or dealing, theft, and violent crimes. Not only is this type of behavior dangerous, but it can also put you at risk of liability. Although trying to deal with a tenant’s illegal activity yourself is admirable, it’s not recommended. In case of criminal behavior or activity, report bad tenants to the local authorities. Then, you can begin the eviction process.

6. Ask Them to Leave

If you want to learn how to get rid of tenants without going to court, the best way is to just ask them to leave. How do you tell a tenant to leave? Some tenants voluntarily move out of the property after you send them a written notice to vacate which should also specify their violation. How much notice is required depends on your state laws and lease agreement.

What happens if a tenant doesn’t move out? The next step is to initiate the eviction process, which can be very expensive, time-consuming, and troublesome.

Worst-Case Scenario: Evicting Bad Tenants

Some landlords utilize a “cash for keys” agreement, paying their tenants in exchange for their compliance to move out. If a tenant refuses to leave, though, you always have the option of evicting them. There are also other reasons to initiate an eviction, such as a tenant harassing the landlord, a tenant partaking in illegal acts, or a tenant violating the lease. If you want to evict a tenant, you need to file eviction papers in court.

How to Get Rid of a Bad Tenant Through Eviction FAQs

How can I evict a tenant fast?

Most landlords want to get the eviction process done and over with, but it often takes a lot of time. The fastest route, though, is to strictly comply with state laws. This will minimize any errors along the way. You might also benefit from hiring an eviction lawyer.

Can a landlord kick you out without notice?

No, state laws require that landlords give their tenants sufficient notice of eviction. You should also send them hearing dates and court dates.

Can you evict a tenant for bad behavior?

Only if what you describe as “bad behavior” violates the terms of the lease. Otherwise, you can’t legally evict a tenant if you just find them rude or annoying.

Seek Professional Assistance

Bad tenants are a part of the rental property management game. Luckily, you can hire professional services to play the game for you. A property management company can help you with all the management tasks, including screening and dealing with your tenants.

Finding a good property management company doesn’t have to be hard with Rental Choice. Our online directory lists the best companies in your area.

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Have Plans Becoming A Rental Owner? Here’s What You Should Know

Posted on 2016/06/032022/04/25 by admin

A lot of people aspire to own and manage a rental property. But, becoming a rental owner is not as easy as it seems. In fact, there are several things one must know and do to be a landlord.

A Beginner’s Guide to Becoming a Rental Owner

At first glance, it may seem like managing a rental property is simple work. Most people think all there is to the job is finding tenants and collecting rent. But, before you jump into any big decisions, there are plenty of other aspects you must consider.

Here is your guide on how to become a landlord.

1. Understand Rental Laws

One of the first and most important steps to becoming a landlord is to understand rental laws. As with a lot of businesses, which property management basically is, there are several laws that can apply to rental properties. The federal Fair Housing Act, for instance, is a big one. But then, most states also have their own state-level fair housing laws. There are even laws at the local level that can apply to rental properties and landlords, particularly when it comes to short-term rentals.

2. Invest in Property

The next thing you should do is find a suitable rental property. Top factors to consider when it comes to selecting a rental property include:

Location
Size
Type
Property value
Local rental market

It is important to strike the right balance when it comes to buying and owning rental property. If you buy a property that’s too expensive, you might have a hard time getting a return on your investment. But then again, a property that’s too cheap is usually a fixer-upper. And that would mean having to spend loads of time and money on renovations and repairs.

Of course, some people get into the rental game because they already have a house or apartment to spare. In that case, you will need to calculate whether or not you’ll be able to earn a profit from your current property. Owning a rental house means having to consider profitability in the equation and letting that inform your decision on whether to rent it out or simply sell it.

3. Get Insurance

There are typically no licensing or certification requirements to be a landlord. But, while not obligatory, it is smart to purchase sufficient insurance. The main policy landlords should get is landlord insurance. If the rental property is attached to your primary residence, talk to your insurance provider about the possibility of including it under your homeowners insurance policy.

4. Advertise

A new rental property owner should also know how to advertise their listing. Rental properties don’t just magically become tenanted. You need to get the word out there to attract applicants.

When creating your ad, make sure to use compelling language, but not too much that it might overpower everything else. Provide all the details of the rental, including any policies you have (no-pets policy, no smoking policy, etc.). Letting potential applicants know of these details upfront will make the selection process much easier. Remember to also accompany your listing with photos of the property.

5. Set the Right Rental Rate

If you thought being a landlord didn’t come with research and analysis, you’re wrong. You can’t collect rent if you don’t set it first. But, setting the right rental rate is not as simple as you might think. You can’t just decide on an arbitrary price and roll with it.

A good way to determine rent price is to do some local market research. See how much other landlords are charging for similar properties in your area. You also have to factor in your property’s monthly expenses and any amenities you have. Be careful, though. Charging too low a rent can cause a net loss while charging too high a rent can scare away potential tenants.

6. Screen Tenants

Not all tenants are made equal. Good tenants pay their rent on time and take care of the property, whereas bad tenants are the complete opposite. To ensure you land good tenants, screening is paramount. That means doing credit checks, background checks, and employment checks, as well as asking for references and talking to past landlords.

7. Draft the Lease Agreement

Becoming a rental owner also involves quite a bit of legal work. Apart from understanding federal and state laws, you need to be able to draft your own rental contract. Your lease agreement should include all pertinent details of the deal, including landlord and tenant responsibilities, a termination clause, and other lease terms. If you don’t know where to begin, hiring an attorney might be helpful.

8. Collect Rent

Now comes the most highly-anticipated part — rent collection. For a smooth process, you should have a standard procedure when it comes to collecting rent. That means setting a deadline (and a grace period), only accepting certain modes of payment, and imposing late fees. For new tenants, you will also need to collect a security deposit, which is typically one month’s rent.

9. Maintain the Property

When learning how to be a landlord, property maintenance is vital. There is a common misconception that landlords don’t do much work, but maintaining the property alone is already a big responsibility. You have to perform routine inspections to check for any damages and address any maintenance issues that your tenants report to you. As a landlord, you have to provide a habitable home for your tenants. It also helps maintain curb appeal, which has a direct impact on property value.

10. Keep Records

If you’re becoming a rental owner, you need to know how to document and keep records of everything. This includes copies of your insurance policy and lease agreements (and any addenda). You will also need to take and keep photos of the property when tenants first move in. Having these before photos will help you identify whether or not a tenant has damaged the property throughout their stay.

How Much Profit Do Landlords Earn?

It is impossible to determine exactly how much you will earn from owning a rental property. This is because there are a lot of variables, and prices can increase or decrease with time. To ensure you earn a profit, it is crucial to work backward. List down all of your potential monthly expenses and make sure you charge a rental rate that can cover all of that.

Some of the most common monthly rental property expenses include:

Mortgage payments (if applicable)
Maintenance and repair costs
Insurance premiums
Utility bills (for multi-family properties)
Management fees
HOA dues

Other one-offs or irregular fees include:

Real estate broker fees and closing costs (if applicable)
Marketing fees
Tenant screening costs
Pest control costs
Capital improvements
Property taxes

The Need for a Property Management Company

Managing a rental property can be overwhelming, especially for a new landlord. As such, many turn to a professional property manager for help. Property management companies offer a wide variety of services, including advertising, tenant screening, rent setting and collection, and maintenance management. Many also provide assistance with legal work, tax preparation, and evictions.

Who needs to hire a property management company? Landlords who:

Live far away from their rental property;
Own multiple rental properties or a multi-family rental property;
Have no time for property management;
Are not skilled in property management; and/or,
Have no interest in hands-on property management.

Before Making a Commitment

Becoming a rental owner certainly comes with plenty of benefits. A lot of people get into this business to earn passive income. But, becoming a landlord takes more time and effort. Before making your decision, it is essential to first evaluate your situation and understand what type of work goes into the job.

If you need a property management company to help you out, Rental Choice is the best place to go. Our online directory consists of trusted property management companies that you can narrow down by area. Start your search with us today!

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