Every landlord has had their fair share of tenants who made their lives a misery. Whether they were destructive, or if they never paid rent on time, tenants like this are common for the owner of a property investment company. But they don’t have to be. Here’s how to avoid a landlord’s most common fear.
Tenants Who Default On Rental Payments
When an unexpected expense pops up with only so much money to go round, something’s got to give way, and landlords hope that it isn’t the rent. However, it happens sometimes that rent is paid short, or it doesn’t come at all, and landlords need to know how to avoid tenants who don’t pay.
The best way to prevent this is with stringent screening. Make sure that your asking price is reasonable for the property and the market value of the area first. Then, when you’re screening potential tenants, make sure that you ask for bank statements, proof of employment and income. You can view their monthly expenses with their bank statements to ensure that they can comfortably afford the rent.
You also need a clear and consistent policy for rent collection. Consequences for late payments need to be enforced, with a set date when the rent is expected. Lastly, you should be prepared to get the eviction process underway if they default.
Tenants Who Damage Your Property
The kind of tenant a landlord dreams of is one who helps them maintain the property. When something breaks, they need to notify you immediately so that it can be repaired sooner rather than later. Hopefully, when the lease comes to an end, and the tenant moves out, your property will look the same as the day they moved in.
Unfortunately, it can happen that there are holes in the wall, damaged or missing appliances, and worse. In that situation, you can choose to withhold the security deposit to pay for the damages. However, you need to prove that the security deposit will cover the cost to repair or replace what was damaged. Make sure that you take photos of the property before the new tenant moves in so that you can compare the damage when they move out.
Being a landlord isn’t easy, but you need to be strict with destructive tenants, or those that don’t pay rent if you want your property investment company to make money. Use these tips to avoid nightmare tenants to protect your investment.