Property management is as equally tasking as it is rewarding. However, for most property managers, bad tenants are the most prominent and also the most common challenge. Even with the best tenant screening system in place, these problematic tenants can still end up in your rental properties. Unfortunately, they will make your life as a property manager a living hell. Knowing these characters beforehand will help you learn how to deal with them without making your life even more difficult. That is why I have outlined the five types of problem tenants and how to deal with them below.

1. The Late-Rent Payer 

In a utopia world, the relationship between a tenant and a property manager would be pretty straightforward. That is, the tenant pays their rent before or on the deadline and the property manager processes it and takes care of the property. Unfortunately there is no such thing as a perfect world, and as the property manager, you will likely come across tenants who always pay their rent late.

Though there are times when even the good tenants may pay rent late, I am referring to the type of tenant who will usually pay rent whenever they deem convenient. This is nothing short of frustrating as it disrupts your accounting plans significantly, and can create just more and more paperwork. Here’s how you deal with this type of problem tenant:

• Don’t Be Emotional, Create a System and Stick to It 

Late payers will continue with this bad habit and even turn into non-payers if you keep on listening and giving in to their sob stories.  In that light, the key to dealing with a late payer is to create a system and stick to it. 

Before they move into your property, let all tenants know the rent collection rules, and while at it, ensure they understand the consequences for late payments. If they agree to these rules and sign the agreement, then you’re legally allowed to enforce these rules, even if it means eviction. 

• Proper Screening 

You can avoid the late rent-payers or the non-payer tenants all together through a proper client screening. Therefore, before you give the tenant the green-light to occupy your property, check their tenant credit report. 

This will allow you to identify whether they’ve got any outstanding payments, past judgments against them, or even evictions. You will even get a look at their credit score, which is an excellent indicator as to how they handle their bills. As a result, it’ll be easier to tell whether a potential tenant will become a headache.

2. The Complainer 

While tenants complain, every once in a while you come across “the complainer,” who is always whining about something. They always seem to have something to criticize and will always come up with arguments which they’ll make sure they win.

If they do have a legitimate issue, they will often want you to prioritize it. For instance, if they have a real maintenance problem, a complainer expects you to drop everything and attend to their problem immediately, even if it is not an emergency. They may also become aggressive if you do not address their issue right away.

Their character makes it difficult to determine when they have a legitimate emergency, as they are always complaining about everything and looking for arguments. This further strains your relationship as you may dismiss their complaint when they indeed have a real issue.

Unfortunately, as noted, it’s challenging to identify a complainer through the screening process, as their real character shows once they’ve already moved into your property. On the bright side, however, you do not have to let this type of tenant make your job difficult. You can deal with them without turning into the bad guy by doing the following: 

• Create a Formal Complaint Platform 

Complainers become a nightmare if they have the freedom to come barging into your office whenever they want. With that said, create a formal way for tenants to submit complaints or concerns they may have regarding their rental homes or the property in general. For instance, create an online portal, or an official email that’s solely meant for property complaints. 

• Define an Emergency 

Some tenant needs require immediate response, while others can wait. However, to a complainer, all their needs are emergencies and they need to be addressed immediately. Creating a formal complaint platform is one way to get them out of your hair, but defining an emergency is even more essential if you’re to prevent them from spamming your email with complaints.

• Always Assure and Deliver a Solution 

Complainers want their needs to be addressed immediately, but this isn’t always possible, especially if it’s not an emergency. That being said, failing to assure them it’ll be handled only worsens the situation. Therefore, if it’s a legitimate problem, always guarantee them a solution and ensure it’s delivered within the promised time-range.

3. The Host to All / Secret Sub-letter

This is the type of tenant who hosts everyone all the time at their rental. From a friend who was supposed to crash for the weekend but ended up staying longer, to that very distant cousin they just came to know about a few hours ago, they are always having unapproved occupants stay with them, and most of the time, without letting you know about it. If you dare ask them about it, they’ll argue that they pay the rent, hence they are free to host whomever they want, whenever they want. 

“The secret sub-letter,” on the other hand, is the type of tenant who sublets out a part, or even your entire rental. They always pay their rent on time and are not complainers, however they’ll be secretly renting out your property. If you’re not careful, they may ask their sub-letters for a security deposit and move out only for you to realize once it is too late!

Here are some potential ways to avoid this type of tenant:

• Run a rental verification prior to them moving in. This is an easy way to see if they’ve done this in the past. 
• Include a very clear, and easy to understand exclusivity clause in the lease agreement. This gives the tenant the right to list people that are allowed to reside in their unit, and prohibits anyone else to do so.

4. The Wrecking Ball

Although a landlord or property manager is responsible for property maintenance, tenants play a significant role in the maintenance of their rental. In that light, another common bad tenant landlords should be wary of is “the wrecking ball” or the destroyer. This type of tenant is usually super messy and will intentionally damage your property. 

For instance, they’ll break appliances, break doors, have an overgrown yard, even stain or tear the rental’s carpet or tiles, just to name a few examples. Unfortunately, the cost of repairs for such damages is usually high, and as if not bad enough, this tenant may move out without your knowledge. Even worse, they may declare bankruptcy, so you have no option but to cover the repair costs out of pocket!

Here’s how you deal with such a tenant:

• Ensure the tenant understands their part of property maintenance before they sign the lease agreement. 
• Put renter’s insurance as one of the property occupancy requirements.
• Conduct routine inspections, so you always know the status of the property. 
• Evaluate each case. For instance, if the tenant hasn’t done much damage and you believe they may destroy it even more if they continue living there, then it may be wise to serve eviction papers or simply not renew their lease.

5. The Criminal

This type of tenant is the worst as they engage in illegal activities that may land you in problems. Why? Well, as the landlord/property manager, you may be held responsible for your tenant’s illegal actions. What this means is that if your tenant is arrested while engaging in unlawful activities within your property, you may be held liable.

You can protect yourself by ensuring; 

• You have a meticulous screening process which includes a thorough background check on all tenants criminal histories and public records. 
• Include a zero tolerance to illegal activities policy in your lease agreement. 
• If you suspect one or some of your tenants are involved in illegal activities, ensure you alert law enforcement. 
• While at it, seek for a consult property attorney in case the tenant manages to hide the evidence and decides to retaliate by suing you.

There’s no magic crystal ball you can use to tell whether every potential tenant will be the perfect one. However, as a property manager you can mitigate the chances of ending up with any of the above through proper tenant screening. That being said, if you already have any of the above problem tenants, follow the tips outlined to handle your situation appropriately.