Property Management 101: How to Deal with Bad Tenants

Renting property is a great way to earn a consistent flow of money each month, but it certainly not an easy thing to do. In addition to correctly maintaining the property, you may also have to deal with bad tenants. One bad tenant can drastically cut into your profit by refusing to pay or damaging the property. These are the four things you should do when dealing with bad tenants to fix the problems in a timely manner.

Stay Calm and Communicate

Dealing with unruly tenants can be an extremely frustrating problem, but you must stay calm throughout the entire process. Getting angry at the tenant is not going to give them much reason to try to work with you on a solution to the problem. You should also try to communicate with the tenant as much as possible. Having a good relation with the tenant is a great way to come to a quick and easy compromise.

Change Payment Plan

Not paying rent is the most common problem landlords face with tenants. If your tenant is having financial problems, then it may be a good idea to temporary set up different payment plan. Receiving less rent money for a few months is far better than getting nothing. You can then prorate the unpaid rent over a period of time once the tenant’s financial problems are fixed.

Change Living Arrangements

If the tenant is not going to be able to pay the rent for an extended period of time, then you may need to change the living arrangements. If they have extra room on the property, then finding them an extra roommate may be a good idea. You can also decide to move the tenant to one of your more affordable properties. If the tenant refuses these two options and still does not pay the rent, then eviction is the only option you have left.

Fix Problem before It Starts

The best way to handle bad tenants is to make sure you never have them in the first place. Improving your tenant screening process is a great way to get trustworthy tenants. Companies like Rentec Direct can give you a detailed credit and criminal report on every potential tenant before you let them sign the lease. If they have had problems with their previous landlords, then there is a good chance they will cause your trouble too.

Dealing with bad tenants is never going to be easy, but it is much more bearable if you follow this guide. You will also develop a good relationship with your tenants, which can only help your business in the future.