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How to Deal With Bad Tenants

Tenants in Michigan

We always strive to achieve financial security in our lives by providing a second stable source of income in addition to our stable jobs. This is part of our human nature, and perhaps renting real property is the most popular type of investment that achieves this goal.

But despite this, renting out your property may become a troublesome and problematic matter more than a solution to your financial problems, the most important of which is not knowing how to deal with bad tenants. Sure, no one wants to rent their property to a bad tenant, but it’s impossible to avoid that all the time.

Although it may seem overwhelmingly annoying, there are many tips, procedures, and precautions that will help you figure out how to deal with bad tenants. In this post, we offer you some of the most important tips that will help you reduce the damage that your real estate investment may bear due to the presence of a bad tenant. Read on!

1. SHOW THEM THAT YOU ARE IN CONTROL.

When dealing with bad tenants, be empathetic, but objective and strict when providing choices. You need to make them feel that you are very strict when they start to break some rules. For example, ask for compensation when your rental property is damaged due to intentional damage, such as a hole in the wall to modifying the room, etc.

Being too good sometimes creates a gap that you are a person who is easily ‘fooled’.

Landlord with tenants
Landlord with tenants

2. PUT GROUND RULES TO PAPER

When dealing with tenants, always write down the rules of the lease. If you do not have experience in drafting lease contracts, seek the help of a specialist in the field (a lawyer). He will help you write the contract in a manner that makes it contain all the necessary conditions, laws and details.

For example, all possible law breaches and consequences should be mentioned in the contract (if you don’t want pets on your property, for example). Do not assume that some laws will naturally be known to the tenant. If it is not present in the contract, you will not be able to take any legal action against the tenant.

3. BE OBJECTIVE

Bad tenants may be experienced at tricking people and will try to play on your emotions. Try to be as objective as possible. Set strict ground rules and tie them to the rules you create. Maybe you can modify a thing or two, if absolutely necessary, but don’t go on making concessions. This will you be under their control later.

4. MAINTAIN COMMUNICATION

Open communication is key to any relationship. When dealing with “bad tenants” in your property, you will want to avoid talking to them. However, this will become a great hindrance in the future. Therefore you need to respond to their phone calls or emails as soon as possible.

Or you can make a regular schedule to visit the rental property. Your visit can be used to check conditions, such as whether the electricity is still functioning properly, the walls are not nailed carelessly, to the bathroom that is maintained clean. Of course, checking bill payments is something you can do, like the telephone to the water. Do not allow tenants to be in arrears on all payments that are due to them.

5. TRY AND FIND A RESOLUTION WITH THE TENANT

As mentioned before, you cannot avoid renting your property to the wrong people all the time. And although trying to find a solution with the tenant does not completely guarantee the results you want, it is an effective and necessary tool that you cannot ignore. You can conduct a quick personal meeting with the tenant and discuss the issues you’ve been having. If he is willing to change, you can give him a chance.

Also, if you have a bad tenant who is late or never pays rent, contact him as soon as he is late in paying the rent. There are a few things to keep in mind here. First, assume the goodwill of the tenant because we are all vulnerable to going through a difficult financial crisis, and this may be the problem with the tenant. Therefore, you need to discuss and understand the reason behind it. Also, get from him a specific date on which he will pay the rent to you.

In both cases, whatever agreement you reach with the tenant, be sure to explain the kind of escalation that will happen.

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6. HIRE A REAL ESTATE AGENT

There is no shame in hiring expert help if you do not have personal experience in the matter that you are dealing with, especially when it comes to a property that you invested most or all of your savings in.

Hiring a real estate agent to manage the property will spare you many problems. This is because a real estate agent, by the nature of his job, has a lot of experience in how to deal with bad tenants effectively. If you have the financial ability to hire a real estate agent, feel free to do this and look for someone with good experience and reputation to help you manage your property.

Real estate agent in Michigan
Real estate agent

7. EVICT THE TENANT

If everything fails, begin the process of evicting the bad tenant. The real problem here is that the bad tenants can cause big damage to your property, in addition to giving it a bad reputation.

Therefore, collect evidence like police reports, noise complaints, proof of additional residents, and other such information. Contact the tenant and ask him to leave the rental property. This is quite a brave act and can be a particular lesson for them. Also, if you are renting your property to a group of residents, you can use this point to your advantage, as you can use them to be a pressure card on the violating tenant to stop violating the laws.

If the tenant is reluctant to move out, you can hire legal representation to kick out the tenant. However, keep in mind that eviction is a complex process and may take a long to complete.

Conclusion:

Ultimately, there is no perfect way to avoid renting your property to the wrong person. But taking some precautions and learning how to deal with bad tenants will definitely help you keep your real estate investment profitable for you.

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