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Dealing with troublesome tenants

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Despite your best tenant-screening efforts, you’re going to make the wrong decision at some point and allow a problem tenant to move in, or you’ll have a good tenant who turns sour. But you can lessen the number of these incidents by getting to know some of the problems you may encounter and how to deal with them early on:

 Late or missed rent payments: Timely payment of rent is the lifeblood of real estate investing, because you can’t pay your mortgage or expenses without it. A written rent collection policy is a valuable tool for minimizing these problems. You also need to know about any government or private financial resources available to your tenant to help them pay the past-due rent, as most courts in a post-pandemic environment are less likely to enforce an eviction until all such resources are considered.

 Loud tenants: It takes only one boisterous tenant to disrupt the tranquility of the whole neighborhood and destroy your tenants’ right to “quiet enjoyment.” Developing and implementing rental policies and rules can prevent your problem tenant from chasing the good tenants away. At many properties, the one bad apple is the reason why more of the good-apple tenants leave than any other single issue. So don’t underestimate the importance to your cash flow of removing disruptive tenants in a timely and legally allowed manner.

Chapter 15 gives you some additional tools for dealing with problem tenants effectively. I also describe the best way to handle common tenant problems and the pros and cons of alternatives to an eviction.

Property Management Kit For Dummies

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