Getting Rid of Bad Tenants
Bad tenants are the bane of any property owner. Not only are they the cause of your headaches due to misuse of your property, they could actually bring down the value of your property. What’s even worse, they can commit illegal acts in your property that could get you into trouble with the law. Getting rid of bad tenants should be a priority for any property owner.
Getting Rid of Bad Tenants the Right Way
Of course, you need to do it the right way. Getting rid of bad tenants using underhanded tactics designed to make them leave on their own is not wise, because it’s illegal and could land you in hot water. Some examples of these DIY evictions include:
- Changing the door locks
- Physically blocking the tenants’ access to the property
- Sequestering the tenants’ belongings
- Harassment
- Intimidating the tenants using hired muscle
If you find the need to resort to any of the above tactics, it’s a sign that the situation has gone out of hand. It is in your best interests at that point to do everything by the book – file for eviction in court.
If things have not yet reached the point where a court battle is needed, you still have time for getting rid of bad tenants ethically (and safely, as far as the law is concerned) using the following tactics:
Raise the Rent
If you have bad tenants that do not violate your lease agreement (maybe they’re annoying, loud, or just plain rude and troublesome to everyone), you can safely convince them to leave by raising the rent until they can no longer afford it. Just make sure you check your state and local laws first, though. Many states limit the percentage that landlords can raise rent prices in a single hike.
Don’t Renew Their Lease
Sometimes it is as simple as just not renewing their lease. Landlords have a right to not renew any lease agreement when it ends. Make sure you notify them using a polite and professionally written notice that explains your intention to no longer renew the agreement. Remember that even if they are bad tenants, you are still forcing people out on the streets so try your best to be civil about it.
You also need to check with your state laws again, because some states require the landlord to justify non-renewal of leasing agreements.
Help Them Find a New Place
Many bad tenants will fight tooth and nail to stay in your property simply because they have nowhere else to go. So if you want them to move out quickly, you have to help them find a new accommodations. If you are an experienced real estate investor, you can use your connections and ask around for other landlords willing to take on the bad tenants. You never know, what you consider a big deal may be a non-issue for other property owners (for example, your problem with a bad tenant might be because they keep hiding pets in the property, even though you specifically forbid it. But other property owners might allow pets on their rentals.)
Just make sure you are honest about why you dislike the tenants, you don’t want to lie about it just to get other landlords take on your burden. Burning bridges like that could affect your business in the future.
Offer a Cash Incentive
Finally, offering a cash incentive just to get a bad tenant to leave could be a smart move. It may seem counter-productive at first, but look at it from a different perspective: a full eviction and a court battle may run you several thousand dollars in legal costs, plus they still get to stay in your property while the case is fought in court. On the other hand, you can just offer them a thousand dollars to move out within the week. You spend money, but you’re spending a whole lot less than the alternative, plus you don’t have to deal with the hassle of a protracted court battle.