TAKING HOMES HOSTAGE: When Tenants Go Awry
Published On: November 22, 2016 Posted by: Jeremy Peterson
Maintaining control of a property is an important job for property managers. Access, maintenance, and community enjoyment are all issues that property managers work to preserve. But, sometimes tenants can gain an upper hand on that control (albeit temporarily) and make life difficult for landlords. Here are a few scenarios to watch for:
You Ain’t Sellin’ This Place
Selling property with tenants in place is a significant issue in Utah’s market right now. With creeping population growth and available housing stock near record lows, tenants are having a tough time finding new places to live once they have been given notice to move. For owners of single family residences wanting to sell their rental into the owner-occupied market, this pinch hits their tenants particularly hard. Rental houses sell much faster and for more money if tenants have vacated the premises. No buyer wants to work their move in date around whether a tenant has found a new place to live or not. Also, the tenant may not leave the home in suitable condition on move out. Tenants who live in a home typically want to stay there and the naturally adversarial relationship that exists between them and prospective buyers prevents most sales from occurring. I have seen tenants leave their less-than-friendly dogs in the front yard. deny entry outright to agents, or simply leave their underwear strewn about the living room to chase prospective buyers away. So, if you want to sell your rental property, always have your tenants move out first. You will be glad you did.
It Broke But I Fixed It
Professional landlords like to maintain control of the repairs on their property. Why is this? Because quality control is a major part of reducing costs in the long term. The overwhelming majority of tenants are not craftsmen or tradesmen. So, when one volunteers to paint a room, you had better plan on repainting it when they move out. Tenants who work on property also tend to build a sentimental attachment to the space. That sentimental attachment often translates into them being even more comfortable making repairs and alterations. Typically, those alterations will have to be re-altered once they move out. The costs can add up quickly. For landlords wanting to keep costs down in the long run, don’t let your tenants be responsible for maintenance and repairs. Pay the pros to do the work and hold the tenant accountable for damages when they occur.
They Don’t Live Here Anymore But I Do
Anchor tenants are a notorious scourge of property managers. Many times an acceptable applicant will be approved for a rental property. Then, once they move in, they move their friends and family into the space with them. This is a big no-no and landlords have to be vigilant to identify when this is happening. If someone is couch surfing in a tenants unit it may be difficult to determine if they are living there or merely “visiting”. Typically, anchor tenants are a gateway to disorder, uncleanliness, and trouble for the property and rental community they inhabit.
Recently we had a tenant approved for a unit. She worked for the Sheriff’s Department as a booking officer. Unfortunately, she was dating her clientele. She moved a drug dealer boyfriend into the unit. I confronted the boyfriend and her about the situation and told them that they could be together but not in the unit. She needed to move him out or they both needed to move. She decided to move and turned in her keys a week later. When I went to take possession of the unit, her boyfriend was still there as if nothing was happening. He had no intention of moving and we were going to be forced to initiate an eviction. But, I and Ogden Police there to keep the peace and they did a warrant check. Presto! They nabbed him on an outsanding warrant and we took over the unit as abandoned.
The bottom line is beware of anchor tenants. Citing tenants for violations quickly and consistently can often prevent this problem.
I Can’t Hear You! (Fingers in Ears)
Tenants often times have an avoidance mentality. That mentality affects their credit ratings which keeps them renting instead of purchasing a home of their own. If this mentality is deeply entrenched, it can often lead to trouble and hassle when things don’t work out as planned. For example. we had a tenant we inherited from another landlord who refused to talk to us. She was late on her rent and would not respond to phone calls, door knocks, or email. She went radio silent. We initiated an eviction and the judge cited in our favor. She did not even show up to present her side of the story. When the Sheriff’s office showed up for the lockout, the whole family was caught in the home going about their business. They had ignored every notice that had been posted on their door till that very moment. Obviously, it was an uncomfortable and awkward situation for everyone involved. Had the tenants returned our calls, they could have moved out and avoided the eviction going on their record. Instead, they cost us a month’s time in lost rents and court costs to force an unavoidable change in occupancy. Landlords should be cautious about renting to tenants who do not take ownership of their circumstances.
Hopefully these pointers will help you manage your properties better. Tenants can take properties hostage if landlords are not careful about setting clear rules and doing proper application screening up front. But, with a little bit of work, landlords can avoid these pitfalls and make owing properties profitable and enjoyable.
