Can you always make a tenant pay?

Question

I am considering becoming a landlord but I'm worried because I've seen a couple posts about tenants causing thousands of dollars in damages. I'm wondering, why would a tenant ever cost you money like that? Can't you get them to pay for damages? If they stain the carpet and break things, they would pay because the lease would state they are obligated to pay, right?

Rolanda Eldridge · Answer

Totally agree with @James Wise ..".bad debt" associated with every business model...Mitigate..

James Wise · Answer

They are obligated to pay yes. but that does not always happen.

you can't get water from a rock.

It is just part of the business. Screen tenants well and you will do fine. There will be some bumps in the road but it's a very profitable business to be in.

Pam N. · Answer

Thanks for all the replies!

If I rent out a single family home, are children more common in these and does that make them more risky than a duplex or fourplex?

Aly NA

Marcia Maynard · Answer

Ditto what Jordan Thibodeau says.  In addition, reduce your risk and losses by having a strong lease and enforcing it.  Do periodic inspections.  Bill tenants for damages as they occur or as you discover them.  Also, stay on top of maintenance.  This will prevent a build up of costs.  Make sure the tenants are paying their utility bills.  Nip problem tenants in the bud by giving them an incentive to move out (rent increase or cash for keys) or evicting them.  Know and understand the landlord-tenant laws for your jurisdiction.

Aly W. · Answer

@Pam N. , yes you could, if you knew where they worked and if they're "collectible" - i.e., not on disability, etc. In this case, once I have the judgment, I'll turn it over to a collection agency. The tenant moved out of state and I don't know where, or even if, he's working.

Gregory Rice · Answer

Hi @Pam N. ,

I currently manage a couple hundred units in Rhode Island and Mass. To be quite honest with you I wouldn't solely rely on the lease to protect you in times of trouble. What I would heavily rely on is your initial screening process. You need to make this the most vital stage of your process because having good/bad tenants makes all the difference.

Additionally, if a tenant damages your unit you should not make them pay (because they won't). Let me give you a personal experience to detail my position.

I have a multi-unit building that I manage. One of the units had a leaky sink. The tenant submitted a maintenance request. The owner said "I'm not paying, it's not my fault this happened." In turn, we charged the tenant XX amount of dollars for the repair. The tenant never paid. The moral of the story is not in the present but rather in the future. If this tenant ever has any type of maintenance issue it is likely they won't report it because they know they will get charged. So what happens is they will let items (like leaks) occur and just deal with it. Now, when that tenant leaves in a couple years you (the Owner) will have likely have thousands of dollars in repairs caused by that leak.

Being a landlord is similar to being in a personal relationship; it's give and take. You take their money and you give them a quality place to live. If you don't provide a value you will lose the tenant and be stuck with an array of issues.

Steve Babiak · Answer

You're assuming that because the tenant is obligated to pay for something, that the tenant WILL pay. Unfortunately, people don't always live up to their obligations, so you might find as a landlord that you have to go through the legal system to get a judgment against a tenant and then you face the challenge of collecting on that judgment.

Aly W. · Answer

Welcome Pam! I strongly suggest quarterly inspections of all properties. We had a seemingly great tenant for 2.5 years, always paid the rent and was polite and respectful. We didn't inspect much as time went on, just made repairs when he called.

After he moved out with only 5 days notice, we discovered that he and his family had caused $7K in damages. Had we been inspecting regularly, we would have caught this in the early stages. The tenant moved out of state and we will likely get a judgment, but collecting on it - very unlikely.

Jordan Thibodeau · Answer

Hi Pam! Welcome to the forums!

IMO: Tenant issues are the symptoms of two factors:

1. Purchasing an undesirable property because it's "a good deal," which leads to attracting people that have no respect for your property.

2. Poor tenant screening process.

3. Lack of communication and oversight from the landlord.

You can recoup the costs of damage via a strong lease and a deposit. If the damages exceed the deposit you can ask your tenant to pay the costs (desired) or take them to small claims court (undesirable and costly).

Instead of worry about the worst case scenario, which can happen, I would focus on your tenant screening process to prevent these issues.

Can you always make a tenant pay?

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