Experienced property managers have seen the worst tenants and property damage. They know a bad tenant can cost property owners big time in the future, whether it's from not paying rent on time, damaging an investment property, or leaving in the middle of the night. All of these things can cause costly repairs and take money directly from the bottom line.
With our Jacksonville property management experience, we've put together some insights into how a bad tenant can take money from your bottom line and how you can protect your property and rental income.
A bad tenant has no problem staying in your rental property while paying the least amount possible (if paying anything at all). That means late monthly rent payments for owners with terrible residents during a lease term. If bad tenants do make the rent payment, it could be only partial payment with a "promise" to pay the rest "in a couple of days."
Even before they move in, bad tenants can try to get a landlord to lower the security deposit or not require one at all. Before renters take advantage of a situation, a Jacksonville property manager can help with rent collection and enforce the lease rules. If nonpayment continues, the right property management company also helps investors through the eviction process while helping minimize the impact on their bottom lines.
If a bad tenant is irresponsible enough not to pay the rent, how do you think they will treat your rental properties? Property damage from bad residents leads to costly repairs before a new tenant can move in.
Some common property damage can include:
These damages can add up for a landlord. Repainting walls and replacing carpet and appliances will cost more than most security deposits. While it might not seem like a priority to place good renters for every new lease term, one bad resident and some pricey property repairs will quickly change your mind!
We mentioned pet stains, and damages animals can cause to the property, but these issues are a more significant problem when a landlord doesn't allow pets in the first place. Bad tenants don't care about lease terms. They will sneak a pet onto the property and never mention it. When a landlord tries to make a routine inspection, tenants with pets that aren't allowed might hide the evidence to keep the landlord in the dark.
If a property owner decides to allow pets in a rental house, professional property managers suggest collecting a pet deposit and possibly a monthly pet fee. However, when a landlord doesn't technically allow pets, no pet deposit or monthly fee is collected to cover the costs of damage from an animal that isn't permitted in the rental. That means any damage to the property could be an out-of-pocket expense for the owner if a tenant refuses to pay.
Bad tenants have no respect for property, property owners, or neighbors. They could become a noise nuisance to the neighbors and give the property owner a bad name in the neighborhood. They might also run into issues with the HOA that lead to fines that landlords will eventually have to pay.
There's also the possibility that a bad tenant will break the law when on the premises. Illegal activities might include selling drugs, manufacturing illegal substances, or growing marijuana on the property. A Jacksonville property management company can help look for signs of illegal activity in your property.
Property managers say all these tenant issues can damage your reputation in the rental community, which can affect the bottom line for your investments.
It might seem like a relief when bad tenants move out of a rental property in the middle of the night. However, when you realize your residents broke the lease agreement without notice and you arrive at an empty (yet destroyed) rental home, you're left with costly repairs and no renters to generate rental income.
What can you do? Property owners can start the eviction process to recoup lost money, but the main priority is to prepare the property for another tenant. Jacksonville property managers know that the turn-around time for a rental can be a few days to a week or two (or longer), depending on the extent of property damage. During repairs, your returns suffer due to a lengthy vacancy.
One of the worst things that can happen to a landlord is having tenants who are bad for business. The way you screen your potential renters will determine the type of renters you're able to place in your property—and help you avoid costly experiences! Work with a Jacksonville property management company to establish a tenant screening process that protects your rentals from bad residents. The professionals at Compass Property Management are here to ensure that you experience better tenants and returns! Connect with us to learn more.
Make sure you're doing everything possible to avoid bad tenants. Download our Tenant Screening Checklist today!