Top 5 Tips for Avoiding Problem Tenants

For the most part, people respect the places they live, but as almost any experienced property management company or landlord can tell you, there are exceptions to this rule. Some people consider renting so temporary that they don't feel responsible for keeping the property well maintained. Even worse, some tenants turn out to be "problem renters"--noise complaints; untimely or non-existent rent payments; property damages. The list of issues that could arise in a landlord tenant relationship is endless, but to protect yourself and your property, here are five tips for avoiding those problematic renters.

1. Recognize both the risks and the rewards.

Yes, renting properties comes with great rewards, among them the opportunity to earn extra income. Or, if you've been unsuccessful trying to sell your home in a turbulent market, renting it instead gives you the freedom to make the move you desire. However, in order to protect yourself--or hedge the risks of investment that are inherent to renting property--it's important first to identify all of the legal, financial and, yes, even mental, risks that renting could carry.

2. Insure, Insure, Insure.

What in your life don't you insure? We carry car insurance, health insurance, life insurance…the list goes on. One of the best ways to protect your interests as a landlord is to obtain proper insurance. Don't be misled in thinking that basic homeowners insurance adequately covers the risks of renting property to a second party. You will need enough insurance to not only protect the property, but also the people within it. Should your tenant injure himself or herself, there needs to be provisions in your insurance plan to cover this. A property management company can help you determine which specific provisions your insurance policy should contain.

3. Get it on paper.

To eliminate the risk of miscommunication or contractual confusion, get everything on paper. Be sure your rental contract is thorough, understandable (convoluted legal jargon isn't always necessary) and sets the exact terms of the agreement. It should clearly delineate both the tenant and the property owner's responsibilities; rent payment details; as well as instructions for correcting problems and repairs. It is recommended that you consult a legal professional to ensure your rental contract is errorless and fully protective.

4. Make a security deposit non-negotiable.

Some people will attract tenants by offering low or no security deposits. While this may be successful as an advertising tool, it's not the safest. When a tenant moves out, if there are damages that need repairing, you will want the security deposit funds to cover the expenses. Also, since most people want to get their security deposits back after they move, they provide added incentive to properly maintain the property.

5. Have a walk-through policy in place.

Before the tenant moves in, walk through the property with him or her. Highlight upgrades and operational systems. Be sure he or she realizes the home is damage free. Also, as a landlord, you have the right to request a walk-through of the property after giving your renter ample notice, at least 24 hours. Avoid violating privacy at all costs, but do schedule a walk-through once or twice during the duration of the lease. This will not only keep you aware of the property's condition and needs, it will encourage the tenant to maintain the space.

Renting offers many benefits to the property owner, but there are definitely areas of risk that should be assessed and hedged before a tenant occupies the property.


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Have questions about how to avoid problem renters? Speak with http://www.youratlantarentals.com/ -- Your Atlanta Rentals is an experienced property management company that will have answers for you.


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