If you are involved in real estate investing and closely manage your sites, you\u2019re bound to run into a bad tenant or two. Hopefully with your interviewing and screening process you chose the best people you could to live at your property. Once they\u2019re moved in, though, sometimes it can seem like you\u2019re dealing with entirely new people than you first met.<\/p>\n
As long as they aren\u2019t trashing the place or an otherwise completely lost cause, you may be able to rehabilitate your bad tenant into a good one. Some people\u2019s reaction to bad tenants is to be really nice in the hopes the renter will feel sorry for you and come around, but that’s the wrong approach. If you do that, you\u2019re really setting yourself up to be a doormat of a landlord. It\u2019s better to be strict, but firm, and to be clear to tenants exactly what is expected of them and what to expect from you, preferably in writing.<\/p>\n
If you\u2019re not communicating with your tenant often and with consistency, you have only yourself to blame. Many landlords are distant with tenants and that\u2019s okay if they are awesome renters, but for bad tenants, you need to be present and forthcoming. \u00a0Be clear about what you\u2019d like to see improve, how it can be improved, and the consequences of failure to follow-through.<\/p>\n
Review the lease agreement with new tenant and thoroughly explain that which is most vital for them to know: The cost of rent, what day it is due, damage issues, repair request processes, how eviction proceedings are set in action and for what reasons, etc. To reinforce what the tenant learned, follow up with a letter welcoming them to their new home and reminding them of their key responsibilities. For problem tenants who have lived in the building for a while, make a copy of the lease with certain clauses highlighted.<\/p>\n
Now that the tenant has been made aware, it\u2019s time to make sure they know you\u2019re paying attention to when they aren\u2019t living up to their end of the bargain. Send a notice when the rent is late, for parking violations, following noise complaints, etc. Get to the problem now before they become your tenant\u2019s habit. If you are inconsistent with sending notices when your renters act up, they\u2019ll continue to act up. Though a face to face verbal warning can sometimes be effective, when you put it in writing, they\u2019re more likely to shape up.<\/p>\n