{"id":77173,"date":"2016-03-06T11:00:52","date_gmt":"2016-03-06T18:00:52","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=77173"},"modified":"2021-03-16T11:54:08","modified_gmt":"2021-03-16T17:54:08","slug":"2016-03-06-firm-but-fair-landlords","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/2016-03-06-firm-but-fair-landlords","title":{"rendered":"The Best Landlords Are Firm But Fair: Here’s How to Adopt Their Principles"},"content":{"rendered":"

One of the best pieces of advice you will ever receive as a landlord is to stick to your policies and to avoid\u00a0making exceptions. This is certainly a sound piece of advice. Unfortunately,\u00a0many\u00a0landlords have to learn the hard way the importance of enforcing agreed upon rules and policies for their\u00a0tenants. <\/span><\/p>\n

As a newcomer to the landlording game, it’s easy to get hesitant when the time comes to act on one of your\u00a0rules. You may try to avoid confrontation and convince yourself that it won\u2019t be the end of the world to \u201clet this one slide.\u201d This is a major mistake that\u00a0almost always leads down a slippery slope of more broken rules. The result can be an unbearable landlord-tenant relationship.<\/span><\/p>\n

People Want to be L<\/span>iked<\/span><\/h2>\n

This\u00a0is a simple truth and a common characteristic of human beings. A new (or seasoned) landlord may feel pressure to make exceptions for tenants breaking rules or not making payments. They want to be perceived as the \u201cnice guy.\u201d This is a natural desire. The landlord may feel that if she imposes a late fee, the tenant will\u00a0get angry and dislike her.<\/span><\/p>\n

Related:<\/strong> The 9 Things I Hate the Most About Being a Landlord<\/a><\/em><\/p>\n

Therefore, the natural tendency is to make an excuse about why an infraction can go unenforced. While this may feel good at first, it doesn\u2019t take long for you to go from being a \u201cnice guy\u201d to a \u201cpushover.\u201d Your failure to enforce your lease is a sign of weakness. A tenant will\u00a0see this as an opportunity to continue breaking the rules set out in the lease.<\/span><\/p>\n

For example, if you fail to impose a late fee when your tenant is late with rent, what incentive does the tenant have to pay next month\u2019s rent on time? You didn\u2019t do anything the first time — why would you do anything the next time? What makes things even more complicated is when you fail to impose a late fee for the first offense, but then decide it’s time to toughen up for a future offense. This creates a double standard and is confusing to the tenant. You need to be firm and consistent with the enforcement of your lease from the onset of your relationship with each tenant.<\/span><\/p>\n

\"tenant-raving-fan\"<\/p>\n

Tenants Expect You to Enforce the Rules<\/span><\/h2>\n

Think about your personal rental experience. If you were late with your monthly rent, would you expect your landlord to void the late fees? If they didn\u2019t void the late fees, would you blame them for being a \u201cbad person\u201d? Almost certainly not! You realize that by imposing a late fee, your landlord is simply doing what is best for\u00a0her business. You don\u2019t think of her as a bad person. In fact, the majority of tenants actually feel bad for the landlord for forcing her to impose late fees!<\/span><\/p>\n

The fact is that you and your tenant signed a contract. It is your obligation to follow that contract and impose the applicable penalties.<\/span><\/p>\n

Don\u2019t Get Caught With a Double Standard<\/span><\/h2>\n

A major issue with \u201cletting it slide\u201d is that your inconsistent enforcement of rules makes things very confusing for your tenants. If you let one tenant slide on late rent, other tenants will expect the same treatment. If you wait to impose the late fee on one tenant but hit another tenant immediately, the second tenant will feel that you are out to get him.<\/span><\/p>\n

Late Fees Work<\/span><\/h2>\n

Landlords use late fees for a reason:\u00a0They work<\/em>. You might\u00a0be shocked at how well a $20 late fee or the potential for a $5 per day late fee will motivate your tenants to round up their rent on time. The fact is that most tenants will pay their rent. Sometimes they forget; other times they are waiting to get paid. <\/span><\/p>\n

Regardless of the reason, the consistent and strict enforcement of late fees is a proven motivator for tenants to pay their rent. What’s more, sometimes tenants plan on being late and expect to pay the additional late fee! This is the best case scenario: You get your rent a few days late, but you get an extra $20-$50 because your tenant broke the rules. It almost feels like magic!<\/span><\/p>\n

\"tenant-funnel\"<\/p>\n

The Best of Both Worlds<\/span><\/h2>\n

It’s possible to impose late fees and other rules of your lease and still be the \u201cnice guy.\u201d<\/span><\/p>\n

Related:<\/strong> 6 Things Every Landlord Should Do to Win Over the Hearts of Tenants (A Renter\u2019s Perspective!)<\/a><\/em><\/p>\n

Here are a few tips:<\/span><\/p>\n