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Successfully Resolving Problems With a Bad Tenant

Mynd Knowledge Center

Rental Investor Starter Kit

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Dealing with a disruptive tenant can prove to be one of the most difficult aspects of investing in real estate, and can be quite costly, if not handled correctly. As such, it is foremost important to remember that, as a real estate investor, you are running a business. The tenant is your customer. No matter the business, problematic customers and scenarios will inevitably arise. Remembering to remain professional and focused on the solution is key to successfully resolving problems with any tenant.

Conversations Cost Less

Owning a rental property is ultimately about maintaining a good client relationship. As a property owner, you are in the customer service business, so maintaining a good client relationship is crucial to the success of your business, overall. This does not mean always being right.

The goal is to find a win-win solution to resolve the problem. This is especially true as conversations will always cost less than conflict. Know that there are two sides to every story. Being respectful to your tenant and looking for ways that you can both benefit will make the experience of owning a rental property easier and far less costly in the long run.

Landlord and Tenant Laws

Likewise, it is important to remember that there are established laws that govern the tenant-landlord relationship. These laws must be abided by, and can be local, state or even federal, and can change from area to area and state to state. Such laws can involve the IRS, discrimination or property code. These are laws that have to be understood when investing in real estate, and many can change.

As such, it is best to keep on top of these laws and understand how they apply to you. Understand how these laws govern your relationship with your client. Keeping within such laws will inevitably make your experience as an investor easier. Understanding them can make the relationship with your client easier, as well.

Customer Service Business

Ultimately, your tenant is a resident and your property is their home. While it is your business, it is important to find solutions to problems that arise instead of jumping to any conclusions. Having a conversation with a disruptive tenant is typically a far better solution than eviction.

Running a business means keeping emotions out of the conflict. Discussing the problem with the tenant can deescalate the situation, and provide a solution without having to resort to more drastic measures. Remember, there are laws that protect both the tenant and the investor and, as such, finding a solution with the tenant is often a more expedient and less-costly choice.

Lastly, use your lease agreement to provide guidelines for how to deal with any tenant conflict. Outlining what is allowed and prohibited within the lease agreement and how those rules are enforced can likely provide a quick solution to any problem that may arise.

Owning a rental property is ultimately a business, and making the client or customer happy is the goal of any business. Finding easy solutions to problems or conflicts can make the tenant-landlord relationship easier, and can be as easy as having a conversation. Understand your rights and the rights of your tenant. If you have a property management company, they will be able to help you work through this. Working within the law to resolve conflicts that may arise can save time and money, and can make the tenant’s experience more enjoyable, as well.

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