Dealing with bad tenants
In addition to our everyday jobs, we are always on the lookout for means and which by which to achieve financial security. As humans, it is engraved in our DNA to seek ways to earn a consistent income. One such way is by leasing property as a source of consistent income. In fact, property leasing is one of the biggest synonyms of financial security. However, like any other investment, property leasing has its own challenges. Dealing with bad tenants being right at the top of the list.
It is unavoidable to come into contact with bad tenants at some point. The significant issue is the damage they will leave behind. In addition, there will be the resources in terms of money, time and effort, required to fix issues. However, by being adequately prepared you can effectively deal with bad tenants. Moreover, you will be in a position to mitigate and reduce the impact of the damage left behind.
Prior to the commencement of each tenancy, ensure you get a security deposit from the tenant. In most instances, the security is equivalent to three months rentals. The security deposit acts as protection, as well as backup if the tenant causes any damage. It is also a safeguard from the tenant abusing the stipulations in the tenancy agreement.
Insurance is one of those things that i cannot emphasise enough. It is neither a luxury nor is it negotiable, it is a necessity. You simply must have full insurance cover against your asset. This is essential to guaranteeing that you continue earning maximum income from your property. Luckily for you, there is an insurance policy specifically designed for this scenario. Landlord insurance covers you from financial loss connected with your rental property. In addition, it protects your physical structure, as well as any of your items that are within the property.
Firstly, it is important to establish and implement an iron clad tenancy or lease agreement. You must also be able to anticipate all the possible breaches, as well as their consequences. You should never under any circumstance leave it at verbal agreements. Moreover, nerves assume that certain issues are common knowledge and everyone knows them. I would advise that you hire an experienced professional to draft a complete and comprehensive agreement. Lastly, you should ensure that the tenant has fully understood the contents of the agreement and that they have signed the contract.
Maintain detailed records
The importance and significance of keeping detailed records of everything increases exponentially when it comes to real estate. From rental payment dates to rent increment notifications, keep meticulous records of everything. This will ensure that you have sufficient evidence in the event of any conflict down the line.
Carry out regular inspections
One of the most important things you can do as a property owner is to check on your rental property regularly. This allows you to identify any issues with a tenancy early on before significant damage is done. This is also important as it gives you a chance to rectify any issues in time. Moreover, it enables you to assess if the tenant is adhering to the lease agreement.
Another proactive step you can take to avoid bad tenants is to screen all potential tenants. Screening allows you to verify their tenancy history. This way you can eliminate the bad tenants, thus minimising your chances of dealing with issues down the line.
When it comes to your investment property management, a property manager is your best friend. A professional property manager will have relevant experience dealing with bad tenants. In addition, they will be knowledgeable about dealing with bad tenants within the confines of local law. It is my opinion that hiring a professional property manager is certainly well worth the investment.
In conclusion, it is imperative that you implement all the precautions listed above. This will save you a lot of time, money, and stress associated with dealing with issues later on.