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Property management software is a great way to increase revenue, not only by automating late fees and allowing tenants to pay as they choose but also by providing a way to prevent certain types of tenant nightmares.
A nightmare tenant is one that directly affects your ability to make a profit. Here are some common types of nightmare employers and steps you can take to avoid them.
Related: Looking for the Perfect Tenant? Find These 6 Features!
The types of nightmare employers to avoid
Some common landlord nightmares involve some type of bad tenant eating away at your potential profits. We’re not talking about a high-class neighbor who hits the dance floor or someone who is always doing construction work next door – real nightmare tenants are the ones who decide.
Here are a few nightmare employers to keep an eye on.
Tenants who do not pay rent:
The first and most dangerous type of blind tenant is the tenant who does not pay rent. This tenant directly affects your ability to collect rent and makes meeting your financial goals more difficult.
Non-paying tenants occupy your property while directly violating your lease. Although it seems that it should be easy to evict someone who refuses to fulfill the obligations of the tenancy agreement, it is not always black and white.
States vary in their eviction procedures, and it’s important not to take steps to evict the tenant yourself by turning off utilities or changing the locks. Doing any of these tricks will prolong the arduous legal removal process and could make you liable.
The best course of action (without banning) is to contact a trusted attorney and follow their advice carefully.
Employers who do not leave:
Dealing with tenants who never pay their rent, or those who had a lease and are overstaying.
If you notice that Sally Mae in Unit A hasn’t left after the day she was supposed to, don’t jump to conclusions. Mistakes happen all the time, and it’s possible that Ms. Mae just got confused about her date. It’s a good idea to send reminders to tenants with an upcoming move-out date so that this mix-up doesn’t happen too often.
However, if the tenant refuses to move out and their move-out date has come and gone, it’s time to contact an attorney. Like tenants who don’t pay their rent, rent-seeking tenants are a serious matter and need to adhere strictly to your state’s eviction laws in order to properly enforce judgments against them and evict them from your unit.
Tenants who damage your property:
Commercial tenants have certain rights to change and modify the premises to suit their business needs. However, the limits of what is allowed should already be written into your lease. Any changes or repairs that go beyond what is allowed in your rental agreement can be considered damages, and the tenant may lose their security deposit or, possibly, be charged.
Any type of tenant who damages the property beyond normal wear and tear is a nightmare tenant. You expect your tenants to treat your units with respect. Anyone who intentionally damages floors, walls, windows or appliances is liable to forfeit their security deposit. However, you will still need to arrange for repairs, and it is possible that the renter’s deposit will not cover the repairs required to restore your unit to its original condition.
Related: Increase Your Rental Income By Making This One Simple Change
How to avoid nightmare employers
The best way to avoid having to deal with nightmare tenants in the first place is prevention. Preventive measures will greatly reduce the chances of a nightmare tenant darkening your door.
The first method of prevention is to use property management software. High-quality property management software will automatically check all criminal, credit and rental history requirements, and your applicants can enter their payment information directly into the software without burdening you with handling checks or credit card payments.
Many property management sites will also create specific reminders for tenants, such as reminders to pay rent, move out or renew when their lease term ends. By making all of these reminders automatic, you can cut down on tenants who just forget to pay rent on time or those who don’t understand their move out date.
Automating your day-to-day hiring management tasks is a great way to give yourself more time to work on growing your business instead of getting caught up in its boring day-to-day tasks. Property management software is also a powerful deterrent to nightmare tenants who may have a bad past rental history, saving you from costly issues.
With quality property management software, you can avoid nightmare tenants, streamline your operations and effectively protect your rental income.
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