When dealing with tenant problems, don’t let them distract you for too long. Settle fast and move on.
When you own rental problems you will eventually have tenant problems. I see a lot of beginner investors spending way too much time chasing these problem tenants. I view at tenant problems as my problem. Either I didn’t screen the tenant properly or I used other bad property management techniques.
There are two main types of tenant problems
Tenant still lives there
If the tenant is still living in the property, you will want to resolve the problem as soon as possible. Tend to any repairs immediately. Resolve any disputes immediately and get it in writing. Collect outstanding rent as quickly as possible. Evict as soon as possible.
I have lost a lot of money because I let things drag on.
Tenant has moved out
Good luck. I have never been successful collecting anything from my tenant after they have moved out. In fact, I have actually paid for a tenant to move out. They were having a problem with a neighbouring tenant and this tenant was constantly complaining. I paid for the moving truck and replaced them with a better tenant.
I have watched a lot of investors waste a lot of time chasing tenants after they have moved out. They take them to the
” rental board” and try and recover some costs due to lost rents and / or damages.
My approach is that I don’t bother chasing tenants. I can make a lot more money by fixing any damages, replacing the tenant and getting the unit rented. I have a property manager that handles all of that for me.
In my 25 plus years as a Real Estate Investor, I have only ever taken one tenant to court. I was awarded the case but the person declared bankruptcy so I never did get paid. But it was the only way I could get him out of the building. I ended up spending about $30K to repair all the damages.
The best way to avoid tenant problems is to do good screening up front.
If you screen the tenants well, you should have very few tenant problems. This allows you more time to look for other investments.