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A Landlord’s Guide To Bad Tenants
Every landlord has experienced or heard stories of terrible tenants and the problems they’ve caused for property owners. Tales of tenants who are involved in illegal activities, who refuse to leave your rental units, or who damage a rental property may send a shiver down your spine. But what types of bad tenants should you look out for? How do you handle them when they’re living in your units, and better yet, how do you avoid them altogether?
We’re here to answer these questions for you to help you bring in better tenants and expertly handle the bad ones before they cause more harm to your business and your properties.
6 Types of Bad Tenants
To handle bad tenants, it’s important to understand the different kinds you may encounter. There are many types of bad renters, but not all nightmare tenant behaviors are created equally—some may affect your income, some may affect other tenants, and some may affect your property.
Let’s look at six bad tenant types so you can be prepared for any tenant at any moment.
1. Tenants Who Won’t Pay Rent on Time (or at All)
One of the most difficult and most common issues a landlord or property manager may have with a tenant is rent either not being paid on time or not being paid at all. Of course, a tenant may have an emergency or a complication with a paycheck that prevents them from paying on time here and there, but if a tenant is consistently paying rent late or has stopped paying altogether, the problem is more urgent (especially because it impacts your finances).
Unfortunately, there is no easy answer for getting a tenant to begin paying their full rent amount consistently on time. Your options include reaching out to the renter to remind them about their payments, applying a late fee in hopes the tenant will submit their payment to avoid the penalty, or initiating an eviction by sending a pay or quit notice that requires them to pay by a certain date or move out. While evictions are usually a worst-case scenario, they are often the necessary option for tenants who aren’t making rent payments consistently over time.
2. Tenants Who are Terrible Neighbors
Another category of bad tenant is the kind who is generally a bad neighbor and bothers your other tenants. This tenant may play loud music late at night or early in the morning, make other tenants uncomfortable or upset, let foul odors drift from their apartment into the hallway, or break community rules about pool, gym, or lobby usage. Not only is this tenant a headache for your tenants, but they are also trouble for you since they can cause other renters to want to move out.
These issues often can be traced back to rules specified in your lease agreement. If quiet hours or parking rules are laid out in your lease, you can approach the tenant and remind them of the policies they agreed to follow when they moved in. If you’re suddenly realizing these rules need to be added to your lease, you can update the lease agreement, send it to all your tenants, and announce that the updated items will be enforced immediately.
Whether you’re a landlord or a property management company, remember to always be ethical in how these rules are enforced across your units—every tenant deserves the same, fair treatment.
3. Tenants Who Sublease Without Your Permission
Every landlord has different opinions on subleasing, or letting another tenant take their place in a rental unit. Some landlords encourage it, while some ban it from their properties. No matter your opinion on subleasing, it’s always important that you know about and can agree to subleasing or subletting when it’s happening. Some tenants, though, won’t offer you this courtesy before letting a new tenant take their place.
This can cause problems for you as a landlord if the new tenant shows some of the behaviors on this list. You may have vetted the original tenant before they were approved to move in, but the new tenant is unpredictable and destructive. So, how do you fix it?
Just like with tenants who are breaking community rules, it’s important to put clear, concise rules about subleasing or subletting into your lease agreement before a tenant moves in. That way, you have proof that they agreed to this rule and are breaking it. If you don’t have this rule implemented into your lease agreements, now is definitely the time to start.
4. Tenants Who Damage Your Units
One of the most frustrating problems a landlord may have to deal with is a tenant who damages your unit. Wear and tear are expected, especially for a long-term renter, but some damage by either intentional or by careless tenants is more extensive. This could be done in a number of ways, like scratching up hardwood floors, leaving holes in the wall from hanging decorations, or breaking furniture and appliances. No matter what the type of property damage is, it adds up and can be a costly endeavor to fix.
Luckily, this is a pretty straightforward situation. The best way to handle apartment damage is to inspect and document as much as possible. Walk through the space with the tenant when they move in and make note of imperfections, then do the same after they leave to compare old and new damage. You should also conduct inspections at a regular interval, like quarterly or yearly, to ensure that the property is in good condition.
If a tenant does leave damage to the property, though, you can subtract damages from their security deposit or let insurance cover the cost of repairs. In extreme cases, you can get the law involved to evict a tenant or even go to small claims court for damages—don’t be afraid to reach out to an attorney if a situation needs legal action and you’re not sure how to proceed.
5. Tenants Who are Involved with Illegal Activity
Obviously, you expect that tenants who move into your units won’t commit crimes on the property, but unfortunately, it does still occasionally occur. Not only is this dangerous for the tenant and your other renters, but liability can ultimately fall on you if action isn’t taken. Activities such as drug use or drug dealing, violence, and theft fall into this category and shouldn’t be taken lightly.
This is a situation where communication and reminders of the rules may not be the safest idea, so don’t attempt to fix this behavior on your own. You should immediately contact the authorities and let them handle the tenant. Afterwards, you can begin the eviction process.
6. Tenants Who Won’t Leave
A nightmare situation for a landlord is a tenant who refuses to leave once their lease expires. While they continue living on your property, you not only aren’t being paid rent but also can’t rent the space to anyone else who may be interested. This can be a huge hit to your rental income, especially if the problem drags on for an extended period of time. What do you do when the problematic tenant won’t sign a new lease, but they won’t move out either?
Unfortunately, the solution isn’t an easy one: Eviction. If you’ve tried communicating with the tenant, either in person or through written notices, and they still refuse to leave, you’ll need to file for an eviction. Often, evictions are costly, time-consuming processes that can take from several weeks to several months to be completed, but it’s the best way for you to regain control of your rental unit so you can find a new, reliable tenant.
How to Avoid Potential Bad Renters
Now that you know some of the different types of bad tenants to watch out for, you should learn how to avoid bad renters before they ever get the chance to move into your rental units. Here are some of the best tips for avoiding bad renters:
- Use rental applications. Asking potential tenants to fill out a rental application helps you bring in serious tenants and provides you with valuable information that can help you determine whether they meet your criteria to be accepted into your property.
- Implement a thorough tenant screening process. Learning about a tenant’s financial, criminal, and eviction history and checking in with previous landlords will give you a good indication of how a tenant may behave in your units. The more thorough you are, the less likely you are to accept a destructive or violent tenant. Always remember to be just and follow the fair housing laws in your area.
- Make your lease agreement extremely clear. Many of the rules that tenants break, such as subleasing without permission, can be established in the lease agreement before the tenant even moves in. That way, they’re signing an agreement to those rules and can be held accountable for breaking them. Be as clear and thorough as possible so that vague terms won’t cause legal issues later.
- Charge a security deposit. A security deposit is a form of collateral a tenant gives you when they move into your unit and can be kept in circumstances like damage to your property or unpaid rent.
How to Approach a Bad Tenant
Knowing how to avoid potential bad tenants is crucial, but if you’re currently dealing with one of the tenants on this list, how should you approach them? Here are a few ideas for handling bad renters:
- Communicate the issue to the tenant. It’s always a good idea to talk to a resident before taking action for unacceptable behavior. If you receive a complaint about a loud tenant, you don’t want to immediately jump to charging a fee or sending a written notice. Start by reminding the tenant of the rule they’re breaking and ask them to fix it. If they refuse, further action can be taken.
- Evaluate the situation. Remember to keep your emotions balanced and evaluate a situation before you escalate it. Is the issue a serious offense or just a small problem to keep your eye on? Is the tenant willing to solve the problem?
- Escalate if needed. If the tenant becomes angry, refuses to fix the issue, or even makes it worse, communicate that the issue is a breach of contract and may lead to legal action.
- File for eviction. If nothing else is working with your tenant and they remain in violation of their lease, you can file for an eviction of the tenant, starting with sending an eviction notice. Remember to check landlord-tenant laws in your area to make sure you’re within your rights to do so.
Conclusion
Navigating the right approach to a bad tenant can be tricky, especially when the issue affects your income or your other tenants. With a clearer understanding of the kinds of bad tenants and how to address them when their behavior becomes an issue, you’ll be prepared for any tenant situation and be empowered to find better-quality renters you can count on.
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