6 Tips To Handle Bad Tenants and Squatters

Perhaps you’re interested in real estate but terrified of being a landlord because you’ve heard all the horror stories of squatters and evictions that took months, or even over a year. These stories are true, and have happened, but in general, eviction is not that difficult nor time consuming. Many times, landlords prolong the process themselves by not filing court papers immediately or by not knowing the legal process, and therefore, getting set back. But once in a while, the horror stories you hear are because of a very savvy squatter or an frustratingly lenient judge who just seems to have it out for the landlord.

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1. Assess the situation and gather all your documents

• First things first; stay as emotionally neutral as possible! Taking this personally will only cloud your thinking and judgement.
• Don’t shut off utilities, change the locks when the person is not around, or hire a “thug” to scare them away. All of these ideas are illegal! Doing this will only set you up to be sued, and that will be much more expensive than doing a proper eviction.
• Gather copies of your lease, rental license, lead certificate, and whatever else you can think of that could be helpful in court.
• Some jurisdictions require that you show some sort of proof that the tenant is not in the military. In Maryland, the courts have in the past asked that we use the SCRA website to gather this information. I question this website’s accuracy, but hey, if that’s what the court wants, that’s what they get.
• Immediately send a notice of entry/inspection (usually a minimum of 24hr notice) and visit the inside of the property. They don’t have to be home. If you see serious damage, take pictures and/or video.

2. Know your area’s eviction and landlord/tenant laws (or find legal help)

• Don’t wait until you’re faced with filing an eviction to learn about the laws. Research those laws now and understand them.
• Make sure your lease reflects local rental laws. For example, if your lease states you charge a 10% late fee but the max legal late fee is 5%, then the judge could very well not grant you any late fee.
• Are the laws written in a convoluted manner? I suggest reflecting the laws in plain English in the lease so everyone understands.
• Any landlord in Maryland should have the District Court Self-Help Resource Center saved in their favorites. The chat feature is especially valuable because you get FREE legal advice from qualified attorneys. Use it! If you have a question, use it! The website also has landlord/tenant laws that you can read. You need to know the first step to take, when you can legally take that first step, and how to continue through the process.
• Note that laws can vary across different counties of the state.

3. Take the first legal step immediately

• Now that you know your first step, waste no time. Whether it’s filing a Failure to Pay Rent (Maryland), Wrongful Detainer (Maryland), Tenant Holding Over (Maryland), Pay or Quit, or Notice to Vacate (Maryland), you need to take that first action as soon as possible.
• Many times, a non-paying tenant will tell you that they will make payment in a couple of days and ask for you to hold off on filing. You will be disappointed when the agreed upon time has passed and you still have no payment. Now time that could have been used to start the eviction process has been wasted.
• You can always stop the court process once you receive your full payment. However, again, know your local laws! Some jurisdictions do not allow a landlord to receive partial payments and if they accept payments, they can not move forward with the eviction process! I think this is an absolutely ridiculous law, and I’m extremely thankful that Maryland does not follow this. In Maryland, you can accept partial payment and still continue with the eviction process until every dime is paid.

4. Follow through

• You might decide to offer the tenant or occupant “cash for keys”. This should not be in place of filing legal eviction papers! Offer the person some amount of money to be completely moved out within say, 10 days. They must return keys and everything must be out by the agreed date. They do not receive any money until this happens. Everyone should sign the agreement too. Offer to end the eviction process once the cash for keys deal is complete.
• The tenant or occupant might challenge you. They might try to claim that what you’re doing is illegal. If you know the law, then you know if this is true or not and have no need to worry. The tenant may claim that something important is broken such as the furnace in winter. If it is broken, I would suggest to go ahead and fix any issue that affects the health and safety of people. Do not give them any ammo to degrade your eviction case. However, if there is a hole in the wall (probably that they caused anyway), they can not bring that against you in court if you refuse to fix it. A hole in drywall does not affect health or safety.
• No matter the offer or threat, continue with the legal eviction process. Do not feel intimidated or worried that you’ll lose the case. Reach out for advice. Know the laws!

5. Minimize any contact with the defendant

• Once you’ve filed court papers, there isn’t much need to continue communication with the tenant. Avoid verbal communication.
• If you must give them information, send it in writing, and keep a copy.
• If you come to the property, try to bring someone with you (unless it’s eviction day, then the sheriff will be with you).
• Do not prolong conversations with the person if you see them. There is nothing to discuss and no reasoning you can do with them. Depending on the caliber of person, they could just try to use things you said against you as any attempt to make the judge side with them.

6. Try not to stress (too much)

• When you have a nightmare tenant or unauthorized occupant, it can be very stressful. Try to remember to stand back from the situation and clear your mind.
• If you know the laws and follow them, then things are probably on your side. Any threats thrown your way should just slide right off your shoulders.
• Learn from the situation. Were there red flags about this tenant’s application? Did you just move them in without doing a check? Was your lease solid enough to stand up in court?
• Take it a day at a time! This situation will pass, and most likely in the end, it won’t be nearly as bad as the horror stories you’ve heard!
• Don’t take your stress out on your loved ones.
• Many times when squatters and unauthorized occupants say they have rights, they actually have no idea what they’re talking about.