Some Tenants Can Just Give You a Headache!

[Steve Rozenberg]

How Do You Avoid Lawsuits with Tenants?

[Michael Gansberg]

Run a good, honest business. Be nice, even when you're wrong. Be nice, even when they're wrong(this one took me about 3 years to learn- I started investing as a young, temperamental guy. Now I'm a youngish, somewhat less temperamental guy, though I'm probably flattering myself on both counts.)

Don't underestimate the value of upkeep- if residents are happy with their apartments and the buildings that they're living in, they will do all they can to stay. If upkeep is performed in a haphazard manner, or not performed at all, the residents will pay rent haphazardly, or not at all, forcing you to initiate a lawsuit against them(eviction proceeding.)

When an eviction becomes necessary, don't be mad about it. People struggle to pay their bills sometimes, by bad luck or bad habits or whatever, but it doesn't make them bad people. Serve notice respectfully, let them know that you're willing to work with them and that you're not upset by the whole process, and that even though you're evicting them, if they need anything they should not hesitate to contact you, and that you'll help in any way possible.

In other words, be nice, honest, and accommodating to a fault. Some will say this behavior will impact returns negatively, but it will keep you out of court, which is a little harder to factor into a spreadsheet. If you live in the U.S., your attorney is expensive, so having to defend yourself less frequently(via an attorney)or performing fewer evictions can really improve your bottom line.