It’s estimated there are nearly 48.2 million individual rental units in the United States. If you’re responsible for managing rental properties, you know it can be a potentially lucrative way to earn some investment income.
Unfortunately, one roadblock can mess up even the most well-managed properties: difficult tenants. Problem tenants not only have the potential to miss rent payments and damage your property, but in some cases, they’ll even have to be evicted.
Even with careful tenant screening, you still have the potential to rent to a rotten apple.
So in this scenario what are some strategies you can use for handling difficult tenants? And should you consider a property management company as an intermediary? In this tenant management tips guide, we’ll answer these questions so you can resolve any difficult rental situations in your life.
Carefully Screen Tenants
Before we discuss dealing with unruly tenants, we first need to discuss avoiding them in the first place. Disputes can arise with any tenant, but they’re particularly common with those who have problematic behaviors.
This often includes things like damaging property, causing noise complaints, or consistently failing to pay rent. To mitigate these issues, it’s crucial to screen each tenant thoroughly.
If you want, you can learn how to screen tenants on your own. Start by examining their employment history, their credit score, and criminal background. These elements can provide valuable insights into their reliability as tenants.
However, if handling all this screening yourself seems overwhelming, consider outsourcing this task to professionals. There are plenty of tenant screening services that will provide you with in-depth reports.
The only problem is that this service comes out of your own pocket. Another option is to go with a property management company that screens the tenants for you.
Outline Clear Expectations in the Rental Agreement
Misunderstandings can lead to disputes, so it’s essential to set clear expectations from the outset. A well-drafted rental agreement should specify all property rules, including policies on smoking, pets, and noise restrictions.
It should also cover what responsibilities fall on the landlord and which ones fall on the tenant. Clearly defining these rules ensures tenants understand what is acceptable behavior, providing you with a solid basis for addressing any violations.
Additionally, make sure to review the rental agreement with your tenants before they sign it.
This transparency not only clarifies expectations but also gives tenants the chance to ask questions, reducing the likelihood of future disputes.
Develop a Relationship With Your Tenants
It’s easy to view tenants as mere names on a lease. However, it’s important to remember there’s a human being on the other side of that name. As such, fostering a personal connection can be beneficial for both parties.
Take the time to get to know your tenants. Small gestures like asking about their interests or offering a warm welcome can go a long way. Of course, it’s important to not overstep your boundaries.
Inviting your tenant out for dinner or drinks can easily be misconstrued. However, a little friendliness early on can help you a lot in the future. When a dispute arises, having a rapport can make difficult conversations more manageable.
People are generally less confrontational with someone they know personally. When tenants feel respected and valued, they are more likely to respect your property and your rules.
Plus, having a stable, friendly relationship with your tenants is just a part of being a good landlord. It makes them feel welcomed and respected, which increases the incentive for renewing their lease in the future.
Be Proactive About Maintenance and Repairs
Many tenant complaints arise from issues related to maintenance and repairs. The longer it takes for you to deal with these problems, the angrier your tenants will get. After all, no one likes being without water or power.
The key is to deal with the maintenance before it becomes a problem. A proactive approach to property upkeep can help prevent conflicts before they escalate.
Regularly inspect your property to identify potential problems and address them promptly. This not only shows tenants that you care about their living conditions but also helps maintain the value of your investment.
During your inspection, you can make sure to look around to see if they’re taking care of your property. Encourage tenants to report maintenance issues as soon as they arise, and make sure you respond quickly to requests.
A well-maintained property is more likely to lead to satisfied tenants, reducing the likelihood of disputes.
Use Technology for Better Communication
In today’s digital age, leveraging technology can significantly improve communication between landlords and tenants. Consider using property management software that allows for easy tracking of maintenance requests, rent payments, and tenant communications.
These platforms often provide a centralized location for all interactions, making it easier to resolve issues and keep records. This will make it a lot easier to keep track of any repairs or issues.
Instead of juggling all the requests in your head, you have them all in one central location. Additionally, consider establishing a group communication channel, such as a messaging app or an email list, to share updates about the property or any upcoming maintenance.
This keeps tenants informed on any announcements you might need to give them. What’s more, it allows tenants to communicate amongst themselves which can facilitate a greater sense of community.
Stay Professional and Calm
When issues arise, it’s vital to remain calm and professional. Approach disputes with a level head and avoid taking things personally. Empathy and respect can go a long way here.
Emotional reactions can escalate situations unnecessarily and make them harder to resolve. Instead, try your best to use neutral language when addressing problems, focusing on the issue at hand rather than the individual.
This creates a more constructive atmosphere for resolving conflicts. Additionally, try to use your tenant’s name in conversation or writing when things start getting heated. Why?
Because studies show when you use someone’s name it creates an atmosphere of respect. Specifically, it makes them more open to the possibility of discussion. Remember, your goal is to find a solution, not to assign blame.
Know Your Rights and Responsibilities
Understanding the legal landscape surrounding landlord-tenant relationships is crucial. Familiarize yourself with local and state laws governing rental properties, including tenant rights, eviction procedures, and maintenance obligations.
This knowledge will empower you to navigate disputes more effectively and ensure you are acting within legal bounds. This is important because failing to follow these laws can result in expensive fines.
Or, worse, they could result in a lawsuit from the tenant. When you familiarize yourself with the legal aspects you also arm yourself for potential conflicts in the future. It lets you know when you’re in the right and when you should defer to the tenants.
Conflict Resolution Techniques
Disputes are sometimes inevitable, but how you handle them can make a significant difference. One way is to research conflict resolution techniques. These can include things like:
- Identifying pain points
- Guarding against escalation
- Asking questions
- Focusing on the argument, not your confidence
- Acknowledging when it’s on you
In some cases, the conflict might grow to the point where it’s completely unmanageable. In these cases, you should consider using mediation as a tool to facilitate resolution.
This involves a neutral third party who can help both sides communicate effectively and reach a mutually beneficial agreement. When discussing the issue, aim for win-win tenant issues solutions.
This means finding common ground that satisfies both your needs and those of your tenant. Compromise can lead to a more positive outcome and strengthen your relationship.
This can be challenging if you feel like you’re in the right. However, even if you are, compromise is still worth considering. In many cases, it can significantly save you time, money, and stress in the long term.
Enforce Boundaries and Rules Consistently
Establishing boundaries is key to maintaining a positive landlord-tenant relationship. Be clear about what behaviors are acceptable and ensure these rules are enforced consistently for all tenants.
This not only helps prevent conflicts but also builds trust among your tenants, as they see that you are fair and impartial.
If a tenant violates the rules, address the issue promptly and refer back to the rental agreement. This provides a solid framework for your discussions and reinforces the importance of following the established guidelines.
Foster a Community Environment
One frequent area of conflict for property managers occurs from disputes between tenants. This is common in apartment complexes with a lot of neighboring units.
Things like noise complaints, trash problems, and pet incidents can cause a lot of bad blood. Sometimes it even has the potential to erupt into violence. The key to avoiding this is creating a sense of community among your tenants.
Consider organizing tenant events, such as:
- Barbecues
- Holiday parties
- Raffles
- Pool days
- Pizza nights
These types of events encourage interaction and build relationships. When tenants feel connected to each other, they’re less likely to engage in behaviors that could lead to disputes. Promote a culture of respect and cooperation within your property.
Encourage tenants to communicate with each other about any concerns and to resolve minor issues directly before escalating them to you. That way, you aren’t getting a call or email for every small dispute.
Consider Hiring a Property Management Company
If managing difficult tenants becomes overwhelming, it may be time to consider hiring a property management company. These rental property management professionals can take the stress out of property ownership.
Here’s how it works: when you hire a property management company you pay them a fee, typically at a cost of 8% to 12% of your rental income. In exchange, they take everything off your plate when it comes to managing rental properties.
That starts with handling things like rent collection and tenant communications. However, they can also conduct thorough tenant screening, handle maintenance requests, and navigate legal issues.
Basically, they allow you to sit back and enjoy some passive income from your property investments.
Not only that, but with marketing and lease strategies they can maximize the profits on your properties. When you consider all of these benefits it’s easy to see how many landlords consider these services worth the cost.
Know When to Escalate
Despite your best efforts, some tenant issues may persist, requiring more serious intervention. If conflicts continue to escalate or if a tenant is consistently non-compliant, it may be necessary to initiate eviction proceedings.
However, you want to consider this step carefully before you proceed with it. Why? Because as this guide notes, the average eviction can easily cost between $1,300 to $7,300.
And that’s not even counting other costs like property damages or lost rent. On top of that, there’s no guarantee that they’ll even be evicted. After dragging the issues out in court there’s still a chance the jury could rule in favor of the defendant.
As such, you want to make sure you do everything by the books. First, be sure you have followed all legal protocols and documented the situation thoroughly.
Consulting with legal professionals or property management experts can provide guidance on how to proceed without violating tenant rights or local laws.
Having a clear, legal approach will protect you and help mitigate further disputes. In the future, consider getting eviction protection plans. Many property management companies offer these services which will cover some of the costs of an eviction.
Need Help Managing Rental Properties? Contact Reedy & Company
We hope this landlord advice guide helped you learn more about handling difficult tenants while managing rental properties. Over the course of our forty years of experience, we here at Reedy & Company have seen it all when it comes to bad tenants.
Luckily, that means we’ve developed strategies for handling them. Better yet, in the future, we’ll use our expertise to ensure that you have the best chance of matching with an ideal renter.
So if you’re ready to make your life as a landlord a lot easier, get in touch with us today.
