How to Avoid Most Landlord Problems
Choose the Right Tenants and Manage them Properly
Landlords love to commiserate on the challenges of renting property—like plumbing leaks, constant painting inside and out, flooring replacement, appliances breaking down, heat and air conditioning systems quitting.
But these are all building issues, and even though they are a big part of the rental property business, they can be managed. The even bigger headaches we hear about come from the people side of investing in rental property—managing tenants and their issues:
- Paying rent late
- Damaging your property
- Breaking leases
- Ignoring the rules
- Making too much noise
- Illegal activity in your rental units
- Eviction hassles
- Cleanliness
Most landlords we know agree that tenant problems are far and above more aggravating than building problems. Perhaps they forgot that the landlord business is first a people business. If you’re not doing a good job of managing your tenants, you might need to brush up on your people handling skills.
And most tenant problems can be avoided before they start, by following two rules: 1. choose your tenants wisely, and 2. manage them properly.
Choosing the right tenants starts with making your property attractive so that people want to call it home. Next, advertising your property with well-worded ads designed to appeal to your target market (without discriminating), and when the phone starts ringing, pre-screen your potential tenants to make sure they can afford your rent. Require a thorough application and let applicants know you always conduct tenant background checks. Screen every applicant, every time.
Once you choose your ideal tenant, communicate clearly—and often. Your lease should spell out exactly what you will and will not do for your tenants. It should also list your expectations from them. Do not let your tenants think you are a pushover, or they will test your limits. Let them know you enforce your lease and your rules fairly and consistently with each and every tenant.
Let your tenants know you are a hands-on landlord, that you will be on the property often to check on things, and that they can always call on you for emergencies or other needs. Give them incentives to stay, and take immediate action if they break the rules or are neglecting their responsibilites.