How to Handle Problem Tenants Part 1
If you’ve been an income property owner for any length of time, you know that dealing with tenants can be a bumpy ride. Whether it’s slow payments or no payments, squatters, or wild parties, tenants can present a great deal of headaches. All of these headaches can affect your bottom line.
If you are not at the point where you are asking someone to “buy my house fast in Clarksville, TN”, employ the tips found in this two-part series to get a little relief and return on your investment. Click here to read part two.
Focus on the Lease
While a great lease won’t ensure a great tenant, it will protect you should a good tenant go bad. Work with a lawyer that can help you produce a lease that fits your specific rental situation. The lease should address procedures for slow or non-payment, how issues on the property will be handled, conflict resolution among tenants, and moving out. The lease should also clearly list consequences for non-compliance. Additionally, if your rental property is in a community governed by a homeowners’ association, make sure the lease lists rules for living in the community.
Upgrade Your Property
If you are experiencing high tenant turnover, it may be time to upgrade your property. Rental properties have to feel like home for tenants to want to remain there long term. First consider basic maintenance upgrades like painting, replacing floors, or necessary repairs. Consider property enhancements as well such as enhancing common areas, covered parking, or adding workout equipment.
Keep an Open Dialogue with Tenants
While it takes work to keep in touch with tenants, it’s a critical part of keeping a lookout for potential issues. It also allows you to encourage them to do the right things. A relationship with your tenant may prevent them from breaking the rules because you are around often and the know it’s less likely that they will get away with it. It also humanizes you. It’s harder to have a wild party that wrecks the home of someone they know than it is to do the same to someone who owns the PO box where they drop off their check.