3 Lessons I've Learned From Dealing with Tenants

1. After investing in real estate for over 5 years now, I've experienced a spectrum of different tenants. Here are 3 lessons I've learned from dealing with them:

(1) If the tenant wants to leave or break the lease, let them leave and find a new tenant. 

Think of this as the "unhappy clause". If the tenant is chronically unhappy with their occupancy in your property and they want to leave, let them go in peace and find a new tenant as quickly as possible. If you try to force them to stay, they could lash out or act erratically. I'm not saying never stand firm on enforcing this aspect of the lease, but if you push back and their aggression only increases, it's best to move on. Save yourself the headache.

(2) Get rid of bad tenants as soon as possible because they are unlikely to improve. 

This ties into my first lesson. A "bad tenant" could include a number of different behaviors, including but not limited to, someone who consistently fails to pay rent on time, damages the property, violates lease terms, disrupts other tenants, and generally demonstrates a lack of respect for their lease agreement, causing financial loss and property damage for the landlord. 

Please don't make the mistake of enabling bad tenants by putting up with their poor behavior. For example, if the lease renewal is coming up and the tenant has consistently paid rent late during their tenancy, don't expect them to change. Find a new tenant that will abide by the lease terms. If you have to, consider fully refunding their security deposit, move-in fee, or prorated rent to incentivize them to leave as quickly as possible.

(3) Be firm but fair when managing tenants

You signed a lease with your tenants and that means you both have certain responsibilities. If something breaks at the property, you should try to get it fixed within a reasonable amount of time. Some things are higher priority than others though.

I've had situations where it appeared pretty clear to me tenants were escalating minor things to create unnecessary, artificial drama. You have to stand your ground and say no to unreasonable tenant requests.

Mediating tenant disputes isn't a fun thing to do, but it's important to gather the facts and be impartial. Remind tenants about the lease terms and do your best to enforce them.