Work at Home – Pros and Cons

2 Ways To Avoid Dealing With Bad Tenants

by Jared Butler

If you are a landlord, then you have probably been there. You are at home enjoying a nice evening with your family, when you get a call from that crazy tenant. After listening to the rant about their on-again-off-again boyfriend, you have to explain why you won't change the front door locks again. Multi-unit management and working with frustrating tenants is never fun, but by taking the right steps, you might not have to. Here are two ways to avoid dealing with bad tenants in the first place:

1: Screen, Screen, Screen

To avoid trouble, many property owners interview tenants in person to get a feel for how they would be as a renter. Unfortunately, since people have a tendency to put their best foot forward, you might be swayed by interesting conversation, jokes, or similar hobbies. After all, who wouldn't want to rent to someone who also enjoys waterskiing? Unfortunately, people aren't always as they seem, which is why it is important to dig a little deeper. Here are a few things you should screen for before you hand over the keys:

  • Public Records: Most people don't realize it, but you can search for more than someone's social media profile online. Public records such as court rulings, criminal charges, and divorce dates are available for free, if you take the time to do an easy Internet search. Although most places have this information available on the county clerk's website, some states offer public information pages that make it easy to search for information. For example, in Utah, you can use their free public records website to search through criminal filings for the past 14 years by entering a first or last name.
  • Credit History: A tenant's spending might seem insignificant, but a credit history can tell you a lot about a person. In addition to containing information about prior evictions, credit reports can also show you if a person has a problem making late payments.
  • Personal Preferences: As you look for a tenant, don't forget to ask about personal preferences such as staying up late, listening to loud music, owning a pet, or smoking. If you need to ask personal questions, try to remain professional. For example, you could say something like "The terms of this lease require that you don't play loud music after 9pm. Is that going to be a problem?"

Although it might seem tempting to gather as much information as possible about each and every tenant, it is important to remember that landlords are bound by the Fair Housing Act. This means that you aren't allowed to refuse tenancy to anyone based on their race, religion, familial status, disability, or gender. 

2: Make Sure New Tenants Understand the Policies

After you have tracked down the perfect tenant, you might be tempted to toss them a set of keys and show them where to park. Unfortunately, even the best tenant might go astray unless they are innately familiar with the rental policies. Here are a few tips for making sure that your new tenant understands the rules:

  • Use Layman's Terms: That legal jargon might look impressive on paper, but will your new tenant really understand what it means to "inhabit" the property? Consider working with a lawyer to rewrite your terms and conditions in layman's terms, so that anyone would be able to understand what you expect. 
  • Ask them to Initial the Document: Instead of simply handing someone a large document and hoping they will read it, consider talking about each portion of your lease and then asking the tenant to initial the section. In addition to being more thorough, this process will give you a rock-solid document you can use in court later if problems arise.    

By taking the time to screen tenants and carefully review rental policies, you might be able to fend off surprise expenses and enjoy more undisturbed evenings.

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