Common problems faced by landlords is something that both landlords and tenants should be aware of. For landlords, the fewer of these problems you have, obviously the easier your job will be. For tenants, the better you can avoid having these problems with your landlord, the better your tenancy will be.
Landlords tend to face problems related to late and non-payment of rent as well as high tenant turnover and repair issues related to routine maintenance and damage to units. All of these can hurt landlord cash flow and increase their work. It can negatively impact a landlord’s ability to offer quality rental opportunities which in turn hurts renters. Evicting tenants is also a costly and time-consuming problem that hurts both renters and landlords.
Common Problems Faced By Landlords
Landlords tend to face a similar series of problems with their tenants.
Late Payment Of Rent
For a large landlord who manages numerous properties, it might be an inconvenience and a pain when one tenant does this. For a small landlord, this can be a cash flow problem right away if late payment of rent becomes the norm.
Solution: Strictly enforce on-time payments of rent. Some landlords specify in the lease that a penalty payment will apply for each late payment or NSF check. Continually follow up with late paying tenants until they pay.
Properly screen tenants prior to signing the lease to only attract those who are likely to pay on time, every time.
Non Payment Of Rent
When a tenant stops paying rent, there could be several reasons. Often, tenants do this if the landlord is not making repairs so they protest by not paying. Depending on where you live, this might be a violation of the lease and enable the landlord to evict the tenant. Tenants also stop paying rent because of financial trouble or in some cases, because they’re scammers.
The effects of COVID-19 and any period with high unemployment makes it more likely that a tenant may be unable to pay rent for a period of time. At some point of non payment, eviction proceedings may need to begin which can be costly for both landlord (especially) and the tenant.
Solution: Familiarize yourself with local laws regarding how to deal with non payment of rent. That way you not only understand the process yourself but can explain it to tenants should the need arise. Plus you will also understand in advance how much it will cost you.
When dealing with non payment of rent, first ensure you understand why the tenant is not paying rent before doing anything. There may be an underlying issue that will quickly pass that is only causing them temporary difficulties and is something you both can resolve. If it’s something longer term, you may need to initiate eviction proceedings at some point.
High Tenant Turnover
Renters may end a tenancy for many reasons. While moving to a new city or buying their own place are common reasons that a tenant leaves their rental property, there are many other reasons that a landlord may face a high turnover rate. Poor maintenance, high rent cost, loud neighbors, bad location, high crime neighborhood or simply a better rental option elsewhere are common reasons a tenant leaves the rental unit. High tenant turnover leads to more work and costs for the landlord which is clearly against their best interest.
Solution: Smart landlords ask tenants why they are leaving when they are informed that the renter is breaking the lease to make improvements to keep the new tenant longer. Smarter landlords ask tenants while they are still living there how the lease is coming along and keep in touch with them as appropriate to ensure the tenant is happy, within reason. They can make adjustments accordingly to possibly reduce tenant turnover proactively.
There is typically less work and costs involved with keeping a quality existing tenant than trying to find a quality new tenant.
Evictions
At some point, landlords may have to deal with evicting a tenant and removing them from the unit. This is something that differs depending on where you live as local or state laws might come into play.
In 2020, many evictions were prevented or at least delayed by government action due to COVID-19 to prevent a tsunami of evictions that would affect many more tenants than the system could handle. Having said that, it was then put in the laps of the landlords in many cases to pick up the slack.
Solution: In the COVID era, evictions were either limited or in some cases prohibited for a period of time in many jurisdictions. Your local area may have its own rules temporarily in place at any given time due to an economic downturn or something specific to your area that may result in many people otherwise being evicted.
Eviction Lab
is a website created by Princeton University that monitors evictions throughout the US. It updates information and statistics over time related to the eviction application and actual eviction rates. They calculated that on average since 2000, the average actual eviction rate in the US is about 2.5% but it will certainly vary by region, city, state, etc.
Damage
Damage to a unit can be grounds for eviction depending on what local laws provide for and how bad the damage is. This is very specific since damage can mean many different things. Here, we’re not talking about expected wear and tear but deliberate and severe damage.
Solution: At some point, damage might be bad enough that it affects the safety of the tenants or the house itself or the neighbors. In this case, you might need to involve the police or a lawyer to evict a tenant. Damage to a rental property will generally be proven in court to then get an eviction.
Taking The Unit Back
In some cases, the landlord might wish to take the rental unit back from the renter. So they’re not evicting the tenant per se but are removing them. Perhaps the owner needs to sell the unit. Maybe the landlord wants to move in themselves and live there. Or possibly the landlord has a family member that would like to live there.
Solution: Understand what the local laws are regarding removing a tenant other than for cause ie. failure to pay rent. In some areas, you are able to do this if the tenant is now in the month to month phase of the lease but you may need to compensate your tenant (ie. 1 -2 months rent in some places) to remove them from the unit when you are the one who initiates it. In other areas it may not be allowed or specific rules may apply.
And if you’re still within the lease period that you signed – within the first year of the lease – you may have to wait until the lease has expired and you move to the month to month phase to remove the tenant.
Eviction Costs
Eviction applications are often relatively cheap to file but once the process begins in earnest, the costs start piling up. While costs might be as low as $50, in California it can be as high as $900.
When an eviction notice is filed, it sets off a series of legal actions that might spur some tenants to settle up and pay what they owe. So in that regard, it might help to sort your problem out. But in many cases, it just firms a delinquent tenant’s resolve to fight you.
How much time and effort does it take to evict a renter from your property? TransUnion SmartMove suggests that an eviction process may cost $3500 and take 3 – 4 weeks to accomplish. Costs may vary but the time to evict a tenant can often take much longer, many months in fact, when you add in that the tenant may appeal and the actual eviction date may be weeks or months later.
Eviction really should be the last option because it can and will cost both the landlord and tenant in terms of money, time and effort. Here are some indicative costs a landlord may face.
| Expense | Cost |
| Court filing fee | $50+ |
| Court charges | $150+ |
| Eviction company or sheriff’s fees | $50+ |
| Legal costs | $500+ |
| Property repairs, new locks, cleaning | $150+ |
On top of that you have to factor in lost rent and other considerations like HOA fees you may continue to pay while the unit is empty or occupied by the soon-to-be-evicted tenant. Lost rent may include the rent you aren’t paid, plus the rent lost when the unit is vacant after eviction while you try to find a new tenant.
Landlord Suggestions
As you can probably imagine, anytime you talk about legalities you immediately realize that your local laws and rules apply. They might be very different from another part of the country. Here are some suggestions for landlords to consider, some of which should be legally checked first, to help improve your rental property success.
- Properly screen tenants up front to reduce the chance you end up with a deadbeat tenant who stops paying.
- Work with tenants who have a legitimate reason to not pay rent if there is a light at the end of the tunnel but if you’re dealing with someone who just isn’t going to pay, the sooner you start the eviction process the better.
- Using a property management company to find a tenant and manage the relationship professionalizes the tenancy and gives you an arm’s length relationship with the tenant.
- Consider using a property management company who can either handle an eviction for you or point you in the direction of the proper legal channels.
- Consider rent guarantee which is often offered by property management companies.
- When possible build a good relationship with your tenant. It doesn’t take much to drop them an email from time to time to say hi and see how they’re doing. If they choose not to respond, at least you tried.
- If allowed legally, consider adding a damage deposit, cleaning fee or whichever fees you are able to add to a lease at signing. It can help to cover some costs you may incur.
Summary
One of the easier ways to ensure good relations with your tenants is by having an actual relationship with them. Some tenants may not want regular contact but the better relationship you have and more frequently you keep in touch with tenants who are willing to communicate, the better. If you can develop a personal relationship with them it’s more likely they’ll be good to you if you are good to them.
Also, do yourself a favor and do the additional work up front when finding and qualifying tenants to ensure you get the best one. Finding a good tenant may not be easy but it is much easier than getting rid of a bad one.
Do you need to find a tenant but are afraid you don’t have the skills or personality (or time) to do it yourself? Consider engaging the services of a property management firm. I’ve used one for several years for one property due to the remote distance from the house and it has worked out well.
