Have you learned the art of dealing with bad tenants?
When you first set out to become a landlord in North Carolina, you wanted to earn some extra income and provide your tenants with a great home. Unfortunately, there may come a time when you have to deal with terrible tenants.
Should that time come, Money Crashers breaks down common tenant issues and their solutions. Keep these insights handy, so you know just how to handle an unfortunate situation.
Refusal to pay rent
When tenants run into economic troubles, they may let their rent slip by the wayside. If that happens, you can agree to accept a partial payment, but limit this to just once or twice a year. Using a percentage of the tenant’s security deposit to cover the cost is another option. For long-term financial hardship, consider downgrading the tenant to a smaller unit.
Harming the building’s reputation
Some tenants may disrupt the peace or have unsavory guests over, making other tenants feel uneasy. You can reach out to local law enforcement to see if any specific units or tenants have had several noise complaints filed against them, so you can narrow down who you need to keep an eye on. You can also offer free or reduced rent to law enforcement tenants to see if the trash takes itself out.
Breaking lease terms
When tenants have pets, modify their units or anything else that violates a lease, communicate the infraction to them in writing. Make sure the person understands the consequences of failing to remedy the situation, such as facing eviction. If the infraction is a minor one, such as a pet, you can require the tenant to pay an extra deposit for the potential trouble.
This information is only intended to educate and should not be interpreted as legal advice.