Becoming a landlord is a great way to create a passive income. However, becoming a landlord isn’t as easy as it sounds. Even if you properly screen your tenants, there’s always a chance of landing a problematic one.
Difficult tenants can make your job very tough. Therefore, we’re discussing several problems you may encounter and how to deal with them.
Despite your efforts, you may end up with a problematic tenant every so often. Here are four problems you may encounter when dealing with difficult tenants.
We understand that everyone can forget to pay a bill every once in a while. However, if this becomes a reoccurring issue with one of your tenants then you have a big problem on your hands. Not only is a late payer an inconvenience but it can also disrupt your income.
Most of these tenants give excuses like not having money on them right now or needing an extension. However, instead of chasing them down to get your rent every month, you can set up a different payment method.
With the help of technology, you can implement a free online payment system. Some systems allow you to automatically withdraw from your tenant’s bank account when the rent is due. So this doesn’t come as a surprise, disclose this information in your lease agreement and send out email reminders.
You could also implement a strict late fee policy to discourage them from paying you past the due date.
Normal wear and tear is not a major issue, but it can become a problem if a tenant is causing excessive damage.
The easiest way to tackle this issue is by requiring periodic inspections. This inspection should include the exterior and interior of the home. Remember that most states require you to notify the tenant at least 24 to 48 hours beforehand.
You can require the tenant to be present for this inspection so that you both can ask questions and make sure you’re on the same page.
In your lease agreement, you should discuss the protocol for addressing tenant-related damage, such as the repair timeline and costs. You can either add the repair costs onto the tenant’s rent or ask them to make the repairs during an allotted time period.
All tenants need to keep an eye on potential maintenance issues and inform their landlords in a timely manner. Unfortunately, small issues can turn into big expensive ones if they aren’t addressed in time. Therefore, it’s extremely important to keep your landlord informed.
The best way to address the problem is by having multiple channels of communication available between you and your tenants. You must make your tenants comfortable so they feel like they can come to when issues arise.
You could also make it easy for them to submit maintenance requests with the help of an online portal.
Unfortunately, some tenants think as long as they pay rent they can do whatever they want, including having an undisclosed roommates or pets. Tenants are supposed to ask permission before allowing anyone else to move in or purchase a pet.
Your landlord may have strict rules against this and you can be subject to fees if you go against the lease.
To avoid this problem, have periodic inspections and drive by the property at different times of the day to make sure there isn’t anyone else living there. Pay attention to the cars parked outside and how long they stay.
Dealing with difficult tenants is a major issue for many landlords. These tenants can become a nuisance and make your job more difficult. However, regular inspections, creating a maintenance portal, and requiring automatic rent payments can help.
Make sure you follow these tips to help lessen your chances of landing a problematic tenant.