Tenant Issues and advise?

Question

To all my investors: Stories!

-What are some of your biggest issues you have had with your tenants in the past and how have you dealt with it?

- What do you say when your tenants make up excuses?

-Any free advise on what to do or what not to do or say?

*Note- Any book suggestions related to business, real estate, and finances?

I would like to hear any experiences you have had. Look forward to it!

Jake Wiley · Answer

I have found that tenants that start with stories about how their amazing life has led them to my unit and paint a picture of how they are the ideal tenant and will be able to help with any and everything are the absolute worst.  The stories never stop, they are generally not helpful at all and eventually have to go.

Tenants with a legitimate need to be in the area with a deposit in hand and no stories have been the best.

The best way to deal with tenants with stories is to follow the letter of the lease in all things.   If they are late, file the paperwork for the eviction the day the lease says that you will.   Charge late fees on the day and in the amount the lease says you will.   It will feel cold and harsh, but you have to be very clear that you follow the lease and there is no wiggle room because if you give an inch they will take a mile and you have set a precedent of not following the lease and creating a "verbal" agreement that you didn't intend to.

I am always upfront with tenants now, when they sign the lease I tell them, I don't do stories, I follow the letter of the lease, I will file the eviction paperwork the day the lease says I will if rent is not paid, etc.  I also state that I will uphold my obligations of the lease, notifications, maintenance etc.    It's not stated in a patronizing way, but very factual.  This is a business and a legal contract for me and has to be treated as such.   If a call comes with stories, I can always point back to the conversation we had and say, remember when I said that I cannot deviate from the terms of the lease, period.   There has been no change.

You will find that over time you will have much better tenants that operate very well in a black and white manner.   Don't do stories.