July 2010: When Handed Lemons, Make Lemonade

Wednesday, June 30, 2010

People have many fears when deciding to rent their home or contemplating buying an investment property. Horror stories abound about damage and difficult tenants. They have made many movies that portray outrageous tenant situations. Unfortunately, difficulties can arise and this is why there are property management companies. There are many things that go into having a healthy investment - a good landlord insurance policy and a preventative maintenance program are two of them. However, it is good tenancy in your property that is a major key to maintaining your property. So, what do you do when there is a poor tenant in your property?

You have already taken the first positive step by hiring us as your management company. We do take proactive steps in reducing the risk of a poor tenancy. However, we know that no matter what measures you take, problems can occur. For instance, we process and select a wellqualified tenant for the property. We require a healthy security deposit and set up the right rental agreements and addendums. We address maintenance problems and tenant complaints.

It may be that the tenants move in and make timely payments and take care of the property. Some time later, the rental payments become difficult because the tenant has lost their job in this difficult economy or there has been a debilitation illness without healthcare. Because of their fear of losing a place to live, they evade the situation until an eviction becomes the only alternative. However, we are here to handle things if the tenant becomes a problem. There is just no way of knowing what human behavior will take place in the future.

There are many different scenarios of what can happen. The tenant could give or be given a thirty-day notice and leave without paying the last month's rent and leave damages. They could simply "skip out" on the property. Although, this may upsetting, this can sometimes be a positive action because we can move on to put in a better tenant. Then, of course, there could be an eviction or unlawful detainer action involving an attorney.