Jason Hartman: "Thou Shalt Hold Thy Tenants Accountable"

Over the years Jason Hartman has heard ex-income property investors lament the fact that they got out of the business because bad tenants either tore up the place or found it impossible to pay the rent on time, if at all. As a nearly three decade veteran of landlording, he finds this excuse - how to put it politely - ridiculous!

The bottom line is that there are landlord protections against destructive tenants. You just need the internal fortitude and patience to apply the pressure and never let up. Your relationship with a tenant is a business deal. If they damage your property it’s no different than you walking into Wal-mart and bludgeoning a shelf of brand new television sets with a baseball bat.

Think Wal-mart’s going to let you slide on that one?

So, what should you do when a tenant destroys your property or won’t pay rent? As a responsible landlord, your first step is to get a judgment against the tenant. And don’t throw out the lame old line that they’re a deadbeat and you’ll never collect. Maybe they are. Maybe they aren’t. Either way, it should have no effect on your actions.

Jason likes to point out that being broke isn’t always a permanent state of existence. People lose money and they come into money. Everyone’s fortunes can change over time. Why do you think a tenant would be any different? The great thing about a court judgment against an ex-tenant is that it sits there on their credit report collecting interest. A judgment lasts for ten years and is renewable, so why the heck wouldn’t you get one?

Here’s the kicker, and where you can really ratchet up the leverage. As long as the judgment shows up on their credit report, they are going to find it near impossible to buy a house or car. No bank is going to loan them money until that debt is paid.

We urge landlords who feel they have been wronged to take the long view. Get a judgment and let it sit there. Some day someone is going to need it removed. On that day you can remember that revenge is a dish best served cold.

The JasonHartman.com Team
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