There comes a point in every landlord’s life where you have a tenant who:
- Doesn’t pay on time
- Damages their own unit
- Damages the common property
- Fights with other tenants
- Does something illegal on the property
- Threatens or attacks you
- Is paying old and very low rents
- Doesn’t play well with others
- Hasn’t paid in several months
Often it’s when you’ve just taken over a new property. If you’ve just bought a multi-family property then it can be even more frustrating, because you’ve inherited 10-200 tenants all at once.
Brent’s going to be talking about this topic at the upcoming October Edmonton and Calgary REIN workshops, and he’ll also be on a panel at the Advanced Landlording and Investing Fundamentals Expo in Calgary October 16th and 17th. (I’ll be there for the Friday and Saturday I think.) If you’re at either meeting, you’ll hear him and Don talking about some strategies to kick out the deadbeats, and how we approached the reality of handling well over a thousand tenants.
To help him get ready and cover the common and interesting situations we’ve encountered in many, many years of dealing with other people’s properties, Brent and I sat down and ran through the types of situations where you’ll need to deal with a payment issue, a legal issue or just want to change the tenant demographic. One of the things we figured out is that for the tenants we’ve put into buildings that we’ve managed for a while, we have start disciplinary proceedings on less than 2% of them. For buildings we take over with poor management by the owners it’s closer to 10% and sometimes as high as 20%. (Note I said poor management by the owners, because in our experience it’s almost never the property managers’ fault, but that’s another topic.)
I’ll cover a bunch of what we discovered in a post after the ALIFE weekend, but I want your input before we finalize things.
- What was your most frustrating tenant issue?
- How have you successfully changed the tenant profile in a building?
- What are the most important parts of your tenant screening system?