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Monday, July 18, 2016

Dealing with Problem Tenants

From Zillow Guide

地主们,祝你们好运!

 
Hoarding, unauthorized roommates, late (or no) rent payments, illegal activities — tenant issues come in all shapes, sizes and levels of severity. Even with the most rigorous tenant screening process and property rules in place, if you are a landlord or property manager, you are going to deal with a problem tenant at some point during your career. With any issue, however, it is important for you to always remain professional: Communicate clearly and quickly, and take the necessary steps — no matter how hard they may be — to maintain a safe and profitable rental.
In this guide, you will learn how to handle common tenant problems and lease violations. The key to dealing with difficult tenants of any sort is to follow a strict and documented course of action. Every state has different laws, so be sure to consult with your attorney for legal advice on what to do with your problem tenants.

So, you have a problem tenant…

Maybe the rent was late (for the third time). Or, you noticed a lot of sketchy foot traffic at odd hours. Perhaps complaints of a foul smell or loud music have started to flood your inbox. When you suspect a potential problem with one of your tenants, it is best to set emotions aside and act quickly to diffuse the situation. When managed effectively, tenant issues are solved or tenants are asked to leave. There are a few things to keep in mind before you embark on mitigating an issue with your tenant.

Know the law

Each state and municipality has unique laws and ordinances. Make sure you have a clear understanding of your landlord rights and responsibilities, tenant rights, and the basic workings of specific notices and eviction procedures. Work with an attorney to set up your policies and procedures. You can also get more information on the law through your state’s Department of Housing website.

Stick to the policies and procedures

When your tenant signs a lease with you, they are agreeing to the rules, regulations and policies of your rental property. Make sure these are clearly stated in your lease agreement, and provide your tenant with a hard or electronic copy as well. In addition, walk your tenant through the provisions of the lease before they sign.
Your lease agreement should detail what tenants can and can’t do at your property, the amount of rent, when it is due and how it can be paid. In addition, include rules about noise, resident-to-resident conflict resolution (if you are renting a duplex or larger property), tenant responsibilities, landlord responsibilities, guidelines on additional occupants, guests, pets, smoking, property maintenance and normal wear and tear.

Document everything

This is incredibly important. Document your policies and procedures for handling a tenant problem or complaint, including expected response times, forms of communication, warnings, notices (when, how and where to serve them), and when to escalate the issue. You may also want to create incident reports and conduct incident review meetings with your team and your tenants.
Document all interactions with your tenants — both good and bad. Note phone calls and conversations, save emails and text messages, and document late rent payments, notices served, warnings issued, complaints, maintenance requests, requests to enter the unit, and what happens inside once you do. Depending on how many units and tenants you have, it may be smart to invest in CRM (customer relationship management) software, or you can create a spreadsheet or another form of documentation that works for you. The method doesn’t matter, just be sure it is the same for every tenant.

Get training

Be sure you and your staff know your policies and procedures, and are familiar with the different types of termination notices, tenant warnings and incident reports. When your tenant is emotional, it can be easy to get fired up too. However, you and your staff must maintain your professionalism, even when your tenant does not.
A respectful conversation with your tenant may be enough to stop an issue in its tracks. When a non-legal issue arises, consider meeting them face-to-face; use your best judgment, as some situations may be more appropriately handled by the authorities. Be direct and specific in your discussion, and outline the issue and the consequences of not complying with the rules and policies. Instead of saying, “Let me know when the trash is removed,” say, “Remove your trash from the hallway by Friday or you will pay a $400 fine.” Consider taking a course on conflict resolution. A basic understanding of these strategies and techniques can help you navigate a solution to a problem tenant.

It isn’t personal

As a landlord, you will encounter tenants with some really good (or sad, or hard) stories. Be understanding, but above all, be firm and unwavering when it comes to sticking with your policies. They are there to protect you and your business. In addition, you should only have these types of discussions with people who are named on the lease. Family members or significant others may want to get involved, and while you should be respectful, only discuss details with the tenant.

Treat your tenant how you want to be treated

Late payments or hoarding can be serious infringements on your policies, but they can also be hard for a tenant to discuss. Make sure you treat issues with confidentiality, even if they aren’t technically confidential information. Tread carefully when sharing information with other residents or neighbors. Also, if you schedule a day and time to come by the unit to talk, be sure to show up, and be on time.

Safety first. Seriously.

If you feel like a situation is putting anyone in danger, call the police. While you want to treat your tenants with professionalism, it should never come at the cost of safety. If your tenant is involved in illegal activities, contact the authorities and let them handle the situation and secure the property. Once that has been addressed, you can go through the eviction procedure, which is separate from any criminal charges.

Termination notices

There are several types of notices or warnings you may use as a landlord. Check your local laws to see how to serve the notice and make sure you are serving the correct notice to deal with the problem.
These are three of the most common notices:
  • Nonpayment of Rent Notice: Use when a tenant fails to pay rent on time. It requires tenants to pay their rent within a specified amount of time or move out.
  • Cure or Quit Notice: Use when a tenant violates a term or condition of the lease. The tenant has a certain amount of time to correct the problem or leave.
  • Unconditional Quit or Vacate Notice: Use when a tenant causes severe, repeated or dangerous problems. The tenant has no chance to correct the problem and must leave.

In order to be valid, all notices need to include these basic elements (consult a legal professional to verify the requirements for your state):
  1. Tenant name and address. This must match the information on the lease.
  2. Violation details. Include a statement like, “Please take notice that you have violated the following covenant(s) in your Lease or Rental Agreement.”
  3. Number of days in which the tenant must comply. Include a statement like, “Within ___ days after the service of this notice, you are required to correct or resolve the violation. Otherwise, you must quit and deliver possession of the premises.”
  4. Signature and date.
  5. Proof of service. Indicate whether you delivered the notice personally, mailed a copy or posted it clearly at the residence. You will need this documentation in court if the issue escalates.

How to respond to common problem-tenant scenarios

From unauthorized pets to dangerous illegal drug sales, a problem tenant disrupts your business and is a threat to your bottom line. There are some common offenders that creep up time and again. Here are the most typical problem tenants — and strategies for dealing with them.
 
Late-paying Larry and Non-paying Nancy
One of the main responsibilities of a tenant is to pay rent on time. If he or she fails to pay rent, this directly affects your revenue stream. In your rental policies, outline what is considered a late payment, what fines apply and when they will be assessed. Be sure to act swiftly and follow through on fines or other repercussions. If your tenant fails to pay rent completely, you’ll need to serve a Nonpayment of Rent notice. This is the most common termination notice, informing the tenant that they must pay the rent (usually within 14 days) or leave.
 
Noisy Nicole and Disruptive Dan
Whether they’re fighting, playing loud music or having raucous parties, noisy, disruptive tenants cause headaches for residents, neighbors and landlords. They may defend themselves by saying it’s their right to be as loud as they want when, in fact, every tenant has the right to “quiet enjoyment.” When included as a clause in a lease agreement, quiet enjoyment prohibits tenants from disturbing others and forbids sexual harassment, racial slurs and intimidation.
If you receive complaints from the neighbors, document them, recording when the complaint occurred and what it was about. This will serve as evidence should you ever bring the situation to court. If your tenant is being disruptive, you should let them know and give them a chance to correct the problem. If the problem continues, send a copy of the lease terms, and if the behavior still persists, send a Cure or Quit Notice by mail or email.
 
Property-destroying Pete
People aren’t always good about leaving a space the way they found it. If you find that your property is damaged beyond “normal wear and tear,” request in writing that the damages be repaired. Don’t forget to keep this document for your records. If the damages are too much for your tenant to handle — for example, a giant hole in the wall — you should probably fix it yourself or hire a professional. Once the repairs are made, send the tenant the bill. Suggest that the bill can be covered using the security deposit or arrange a payment schedule.
If none of these options work, send a Cure or Quit Notice. If, after sending the notice, the tenant fails to pay for the damages or make repairs, ask the tenant to leave. Your lease should explain the tenant’s responsibilities if he or she deliberately or negligently damages your property.
 
Bad-news Betty and Illegal-activity Ian
Some tenants really are up to no good. If you have evidence that your tenant is involved in illegal activities, such as illegal drug use or distribution, it’s time to contact the police. Call your local narcotics division and ask if they have any reports related to your residence that they can disclose.
If you receive calls from neighbors, ask them to send you a letter stating their observations, and suggest they mail a copy to the local narcotics department. Dealing with people under the influence of drugs can be dangerous, so assure witnesses that you will not reveal their information without their permission.
Note that an arrest does not change a tenant’s right to occupy a property. In the unfortunate event that your tenant is incarcerated, your next steps are determined by the terms of the lease. Otherwise, you may have to serve an eviction notice to your incarcerated tenant. In this situation, it’s best to consult an attorney.
 
Nitpicking Nathan and Needy Nellie
These problem tenants will flood your email and voicemail with complaints about the property and neighbors. They will request repairs and new appliances, new paint and new flooring. While you may want to let the phone just go to voicemail when you see their number, remember to treat them with respect and take what they say seriously. Also be sure to document their requests. If their communication becomes a hindrance to getting business done, then sit them down and outline the issues. A straightforward conversation can go a long way.
Property-abandoning Paula
If you have reason to believe someone has abandoned your property, consult an attorney about your local laws regarding their personal items. As much as you might want to toss them all out so you can start looking for a new tenant, many states have strict rules about how to handle a tenant’s belongings.

How to evict a tenant

No matter how bad the problem is, you cannot kick the tenant out of the property, make threats, change the locks or turn off the utilities. This is called a “self-help eviction,” and it’s illegal. You need to issue an eviction notice from the court before a legal eviction can occur. But only move forward with an eviction if you’ve tried to work with your tenant to correct the issue or if the transgression was so serious it is grounds for an immediate eviction (such as illegal drug activity).
 
Serve your notice
All legal evictions start with a notice informing the tenants of your intentions. The notice should include the number of days the tenant has to comply with your request. Otherwise, the tenant will be asked to leave, also known as “quitting.” If you have safety concerns, you might want to hire an eviction service company to serve the notice for you.
 
Take it to court
To proceed with an eviction, you will need to work with the courts. Consult an attorney and avoid using the small claims court, which is more appropriate for problems like rent disputes, not immediate concerns like removing someone from your property. Other courts in your jurisdiction, such as the municipal, superior, justice, county or circuit court could expedite your case. Note that you may be asked for several copies (either paper or electronic versions) of your evidence, including any notices or warnings, and all other documentation you have relating to the tenant. The more evidence you have to defend yourself, the better you position your case.
When dealing with problem tenants, emotions can run high, and things may not always go as you would like. However, remaining firm, level-headed and sticking to your policies and procedures will help you make the right decisions and resolve the issues.

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