7 Steps to Deal With Bad Tenants

I know – you want them immediately out of there because they are offending you in some way. Take a moment to think about what is actually behind the behavior before you do anything.

Step 1: Consider Whether They are a Bad Tenant or You are a Bad Landlord

I know it is hard to believe, but maybe they are being a bad tenant because of you. There could be so many reasons why you are the bad landlord but the biggest is poor communication. It starts with the lease. You need to put all the important things in that lease. Who handles taking trash out to the dumpster? Who removes the snow? When is the rent due? What happens if it is late? Another problem is lack of consistency. You need to enforce your agreement and the tenant should as well. Consider as many potential problems as you can. Will you allow the tenant to display a flag other than the US or state flag? What if it is a Nazi flag? Can they put up tin foil over the windows? If it’s not in the lease, it is difficult to enforce later.

Communicate these things up front. Read through the lease with the tenant. Write up a one pager which summarizes the important points of the lease. Give them phone numbers to call in an emergency. Let them know what constitutes an emergency. Clogged toilet at midnight? AC out in the springtime? Probably not.

Step 2: Talk to the Tenant

This one is also communication like in Step 1. Don’t just assume you know what the problem is. Talk to them, in person, if possible. Listen to their side and once done say what you understand back to them. Only after that should you give your side. Avoid getting angry or yelling. That won’t help you get your way and will sound bad should it be recounted in court.

Step 3: Document Everything

Document every interaction and communication you have with the tenant. This doesn’t mean surreptitiously recording, although in some states you are allowed to do it. Simply having consistent documentation goes a long way to establish credibility later, when you talk to the tenant again or if you find yourself talking to a judge in an eviction. Documentation can also give defense should you get sued. Documentation could be electronic or on paper. Keep it in a safe place. Do not alter it later.

Step 4: Know the Law

You don’t have to become a lawyer to know landlord-tenant law in your area. Sure, it is complex, but it is worth it. If you are managing your own properties it is mandatory. Landlords are held to a higher standard than tenants to know the laws and are punished more harshly for breaking them.

Step 5: Look at Your Lease

If you followed Step 1, you should have a great lease that is clear in responsibilities. The bad thing the tenant is doing is probably in the lease and it will tell you what to do.

Step 6: Consider the Value of Keeping the Tenant

If they are paying rent, maybe you can come to some accommodation to keep the rent coming in and avoid having to do a costly turnover. Even though you don’t like them, they might still be providing value to you and it might cost more to evict. If they aren’t paying the rent, then this one doesn’t apply.

Step 7: Cash for Keys

Oh, what a bitter pill to swallow. Give the misbehaving tenant money to leave? Do the math – it might be cheaper than an eviction. You got into this to make money, so don’t let your pride and ego make you lose it. $100 bucks to be gone by Friday is a steal for you. Probably so is $500 or even $1,000. But only pay after the place is empty, damage-free, and clean.

Step 7: Get an Attorney

This aught to be your last step. Attorneys are expensive and judges rarely give you exactly what you want. Not to mention that it takes time to bring suit and get to a judgement. In the meantime, you aren’t getting rent. Eviction is expensive and painful. It could wipe out 6 month’s to a year’s worth of rent so only do this if you’ve exhausted everything else.

Bonus Step: Be Honest

Really, I shouldn’t have to tell you this. You are in this for the long haul. Honesty will get you much further. If you messed up, own it and move on. Tell the truth. If you just can’t do it, go back and read Step 1.

Dr. Equity

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