When do you handle a bad tenant?

Question

I'm not referring to eviction!

I'm talking about tenants that are always walking a fine line. These are the renters that cause death by a thousand cuts, small infractions or problems but the sheer volume becomes a regular irritant.

• They constantly complain about "problems" like mold in the corner of their tub that could easily be cleaned or that the neighbor's porch light is too bright and shines right into their bedroom
• Habitually late with rent. They pay, but it's always just before the eviction deadline
• Constant complaints from neighbors about (name the problem) but you can never catch them in the act
• Every time you drive by, the lawn is barely alive, never edged, and there are 16 bikes, skateboards, and scooters piled up. It looks like the Clampetts compared to neighboring properties, but it's not bad enough to evict

How do you handle this? Do you wait until their lease is up and not renew? Ask them to leave? Clamp down on them and fight for compliance? Shut down and ignore them?

I have a few suggestions for specific issues, but I'm curious to hear how others handle these tenants that tend to walk a fine line.

Dick Rosen · Answer

I constantly check their lease expiration date and chill, it will be a non-renewal notice for

Bjorn Ahlblad · Answer

@Nathan G. All our tenants are month to month, and we get first, last and a security deposit prior to move in so that helps set the tone. I make sure about the legitimacy of complaint, and if a tenant starts with lots of frivolous ones they get rewarded with a rent increase. If it continues I tell them they are free to go with 30 days notice. We also do a video move in with a check list they sign. We have not had a whiner for a while. Late paying tenants get educated right at the beginning "you are not being fair to the other tenants who all pay on time" that combined with a late fee usually does the trick.

Joe Cassandra · Answer

I don't think you can kill a lease because of 'needy, annoying tenants.' (I wish :D ). Cash for keys maybe.

I'm still learning this screening game...and it's going okay so far. What I do is tell them right upfront...and it's right in my pre-screening questionnaire that they say "yes, I agree to." so I can point to it.

"Look, I expect you to be able to take care of simple maintenance around the house" And I provide a list before they sign the lease. Basically, I try and get them NOT to sign a lease unless they agree to only reaching out for things that 'affect the ability to live and/or feel safe in the house.'

This turns some people off, but it's worked so far.

About to potentially rent to a young group and their leader was asking about replacing water filters for her. I told her "No" right away. And said "no" a few more times before it was all said and done. I then stressed again, if you apply, THIS is how I run my homes. I answer major repairs extremely fast. But if you call to change a light bulb, you will hear "no." If you want that kind of maintenance, go to an apartment complex. (which they just came from).

They applied the next day.

JD Martin · Answer

I ignore everything except for the "just in time" payers. I send out a mass e-mail blind copied the day before due date to remind them something they should already know. Beyond that, at lease renewal time I just increase the rent for the ones that I want to be rid of. Either they'll pay more and compensate me for my aggravation or they'll leave. Fortunately, I've only had one or two burrs over the years. We try to screen pretty hard.

I know you manage a lot more properties than me, so you are statistically much more likely to get aggravating people.

Jill F. · Answer

I think it's a mistake to ignore or dimiss those tenants that are chronic complainers and those that are constantly thoughtless and/or worse rude to neighbors (garnering a steady stream of complaints) as not a landlord problem. If a tenant is constantly complaining to you they are (in all likelihood) badmouthing your company to other tenants and associates; if you get a steady stream of complaints from neighbors about a particular tenant, you are seeing the tip of the ice burg, because the VAST majority won't complain, they'll non-renew. Just over 9% of the population have a diagnosible personality disorder and many more, while not disordered to the point of a diagnosis, are just "difficult" people-- they have "entitlement issues" they will always be disappointed because no one ever gives them the respect they think they are due. These folks left unchecked will make make you and/or their neighbors miserable. This is why M2M leases are my fav. I call out entitled behavior DIRECTLY and unequivocally and let these tenants know I don't play those games but they rarely are able to change their behavior so They get the old "We will not be renewing your lease." Some of these disordered people can even be quite charming in an inital meeting but they usually have issues in their background like job hopping or evictions. I'm testing honestrenter.com, I think it is going to help screen out the more borderline bad actors.

On late payment issues, for me, that depends on the asset class. For my units in low-income areas where I have primarily low credit score tenants, I have a late policy that provides incentives to tenants that; 1) notify me in advance 2) make a partial payment, 3) never fall more than one payment behind 4) pay payment plans EXACTLY as agreed. When these requirements are met, I waive late fees if paid as agreed. Its all done by text with minimal fuss.  With high credit score- high income tenants, they need to make that payment on their visa.

Quincy Lockett · Answer

@Nathan G.

Wait til lease end and not renew. Once a marginal tenant is aware of your ‘displeasure’ with them they can become irate tenants (extreme damage to the unit). I like to ease my hand out of the lion’s mouth.

If they are at the point where I believe there is no peaceful recourse. I’ll continue to collect rent while I count down the months to the 30 day notice.

Jennifer T. · Answer

When there are problems like you are describing, of course I have a discussion with the tenant to give them a chance to correct things.  Usually multiple chances because I hate turnover just like everybody else.  But if they ignore me and don't, when I get to a point where a vacancy sounds better than having to deal with them anymore, then they're served with a 30-Day Notice to Vacate.  Or, if they're lease isn't month-to-month, then I'll non-renew 30-60 days out.  I'm required to give at least 30 days, but I'll give more time if I've made my decision sooner.

My husband and I were just talking about that last night!  We have tenants who have a number of positives but, overall, are problem neighbors to the other tenants we have on the other side of the duplex.  Too much loud noise and too often, though this has become a lot better since I've had multiple discussions with them and posted a Cease or Quit notice.  I can't prove it but they have God knows how many people living there along with people over all the time.  So it's a constant opening and shutting of their door.  There is a lot of arguing.  They and their guests just throw trash on the ground in the front and back yards.  Which they share with the other tenants.

Now that they have improved the noise, I just feel like there isn't anything I can quite hang my hat on to have a justification to break their lease.  Especially since the complaints are hearsay from the other tenants.  But, at the same time, I believe them because they're great tenants and I've seen or seen hints of what they're talking about.  To me, the problems fall into the category of not a big deal if they happen once in awhile...except for the unauthorized residents, which I can't prove.  But they are a big deal when it's constant and ruining the quiet enjoyment of the other tenants.

At any rate, what my husband and I were talking about last night is that their lease expires in Sept. and we're going to non-renew them if things don't improve.

When do you handle a bad tenant?

Most Popular Reply