Long term tenants can help you become a successful landlord. But they have the potential to become the tenants from hell or Problem Tenants!
We’ll see how to prevent that from happening.
If the landlord keeps getting rent regularly on time, with no complaints of any repair issues or any trouble, there is a general tendency to be complacent. Because you are earning money without spending time or money, it seems like a very good business. This is as especially true in the case of a novice landlord. As the new entrant in the landlording business has not faced any burnt from the mistakes.
Usually, that’s where the trouble starts. I am not saying good tenant would flip to problem tenants. What I am pointing out is that if the trouble was to start, the landlord’s insufficient attention and scarce communication creates a conducive atmosphere for the trouble to get started at this point.
What happens when the landlord does not visit the property for a long time?
Regular upkeep of the property, if they are the tenant’s responsibility, may stop. Many other things may happen to the landlord’s disadvantage and without consent.
The tenant can become a hoarder.
Sublet can happen or the tenant can invite the guest/partner to stay on the permanent basis and start collecting rent from him or her.
The problem tenants can have pets without the landlord’s permission.
What is the right approach?
Always keep an eye on your property
A simple way to do this is to go and collect the rent in person. That way you would see your tenants in person every month-by-month. Even if you don’t go into their living areas, somehow you would get some idea if everything is alright or if there is something wrong.
Your focus is to have good tenants that remain with you for long period of time
There are practical ways to do that. You should go to collect the rent in person without sounding aggressive. You can just say you are in the area and can come by to collect rent if that’s ok with them. Any reasonable person would not see anything into that. If your tenant unreasonably resists, that’s also good for you as that may be a sign of something to keep an eye on even more vigilantly.
Install periodic inspection clause in the lease
You have lots of reason to install this clause in the lease.
-To check mould, leakages etc
-For replacement of the furnace filters,
-To check for normal wear and tear or appliances.
Usually, one visit every quarter would serve your purpose.
Check credit and employment status every time you renew the lease.
You can’t take chances with these 2 factors. You’d save yourself lots of trouble by doing these 2 things. Some jurisdiction prohibits to check the credit again. Check out with regulations. There may be a law for the tenant to automatically renew the lease as long as the tenant has paid the rent regularly in the past.
All in all, you have to optimize your approach and be objective for your purpose. Your purpose is to keep a good tenant that stays with you for a long time. If your approach is overly aggressive or suspicious, it would turn your tenants off. You also don’t want to be too trusting so your tenants start abusing your liberal approach and become a problem tenants over a period of time. You have to keep a balanced approach. Your judgement would come into play. This is also a learning curve for your landlording business.
I hope the information in this article is a great help to you. Please share your most valuable opinion on this subject in the comment section below this post!