How Do Real Estate Agents Handle Difficult Tenant Situations?
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How Do Real Estate Agents Handle Difficult Tenant Situations?
Navigating the complexities of property management can be daunting, especially when dealing with difficult tenants. In this article, seasoned experts including a Founder and Real Estate Investor and a CEO share their invaluable experiences. The first insight highlights the importance of conducting sewage-lateral-line inspections to prevent major issues, while the final insight provides strategies to address unauthorized subletting. With a total of five insights, this comprehensive guide promises to equip property managers with practical solutions to real-world challenges.
- Conduct Sewage-Lateral-Line Inspections
- Stock Heaters for Emergencies
- Offer Payment Plans
- Enforce Lease Terms Strictly
- Address Unauthorized Subletting
Conduct Sewage-Lateral-Line Inspections
Late one night, I got a call from a tenant saying sewage was coming out of the kitchen sink. It was around midnight on a weekend, so getting a sanitation team to fix the problem was complicated, and it ended up costing me $9,000 just to have the broken pipes replaced. Thankfully, I learned my lesson and now always have a sewage-lateral-line inspection done on older houses to avoid unpleasant surprises.
Stock Heaters for Emergencies
We are based in Chicago and manage some multi-family buildings with boiler heat. A large boiler in the basement sends hot water or steam through pipes to the radiators in each apartment. On a cold night one winter, multiple residents at one building were notifying us their apartments were getting cold and were getting extremely concerned. We expedited a heating technician, who found that the boiler at this property was malfunctioning and advised that repairs could take a matter of days, as replacement parts would need to be ordered. We went and purchased dozens of electric plug-in heaters at home improvement stores and placed them in the apartments to provide the residents temporary heat. We continued to check in with the residents to ensure the heat was adequate while we waited for the repairs to be completed. Now, we keep a stock of heaters to be dispatched as needed for heating emergencies.
Offer Payment Plans
In my experience as a property manager, I've found that a good foundation starts with strong tenant screening. One example of handling a difficult-tenant situation involved a late-payment issue. I had a tenant who began missing payments regularly. Instead of jumping straight to eviction, I tried communicating openly with them to understand the situation. It turned out they had some personal issues that had affected their ability to pay on time. By being understanding and offering a payment plan, I was able to work with the tenants and help them get back on track without resorting to legal action. This approach helped keep the situation amicable and prevented further stress on both sides.
Enforce Lease Terms Strictly
What I've learned from handling difficult tenant situations is that being proactive, firm, and consistent is crucial in maintaining a healthy relationship with tenants while also protecting the property and adhering to legal standards. One example that stands out involved a tenant who was habitually late with their rent payments, often coming up with reasons like financial difficulties or unexpected expenses. This became a recurring issue over several months.
First, I considered that the tenant was doing their best and sent a friendly reminder every time they missed the due date of the rent explaining why it's important to pay on time and what it says in the lease. Even then, the tenant continued to pay late, which further started hurting the cash flow of the property. I decided it was time to address the problem in a more official manner.
I called the tenant and requested a meeting to discuss the issue with them face-to-face and to come up with a solution. Indeed, in the meeting, I could hear their situation, yet I made it clear how serious it is to make timely rent payments. I mentioned that continued late payments may result in further action, up to and including eviction. I also inquired as to whether they would like an automated payment set up so the rent is pulled out automatically every month; this might reduce some of their stressors.
Unfortunately, the tenant continued to make his payments late, and it became obvious that the problem was not going to rectify itself. I had to send many reminders and have talks; finally, a formal notice of overdue rent had to be issued, which was to serve as a warning of potential legal action if this state of affairs continued beyond the deadline given in the notice. I began keeping detailed records of late payments to track the situation.
Eventually, he agreed to a plan to pay off the back-due rent and allowed him to stay, ensuring future payments were current. This experience was critical in showing the importance of clear communication and putting everything into writing with tenants for the protection of all parties. It also emphasized how strict one must be with regard to lease terms while at the same time giving support to the tenants to abide by them.
Address Unauthorized Subletting
Situation: A tenant was found subletting their unit through short-term rental platforms without authorization.
Action Taken: I gathered evidence, notified the tenant of the lease violation, and explained the risks this posed to the property and other tenants.
Resolution: The tenant removed the listing immediately and provided assurance it would not happen again. If the issue had persisted, I was prepared to terminate the lease.
