Did you know that each year there are over two million eviction filings? If you’re dealing with a bad tenant, then you might be tempted to jump right to eviction. But, the reality is that this isn’t always the best option.
Evictions can be long, expensive, and painful. So, you should be fully aware of all your options when dealing with bad tenants.
That’s why we made this article. In it, we’ll walk you through all of your options when dealing with the types of trouble tenants. That way, you can decide on the best option for your needs.
Bad Things That Tenants Sometimes Do
What separates the types of problem tenants from the good ones? There are a lot of different defining qualities, but one of the most common ones is late payments or no payments at all.
However, it’s important to note that failing to make a payment doesn’t automatically make your tenant bad. For example, you might have a great tenant for three years.
But then something like the COVID-19 pandemic rolls around and they lose their job. Just because they can’t make rent doesn’t make them bad tenants. It’s estimated that 5,721,000 tenants are currently behind on rent.
So, if you rent then it’s likely that you’ll encounter this problem at least once. However, some other things can make a tenant a bad fit for your property. This include:
- Illegal subletting (renting a room to someone else without telling you)
- Frequently disrupts the neighbors
- Damages your property
- Illegal activities on the property (like drug use or drug selling)
If you’re dealing with bad tenants that are doing any of these things in combination with late or non-payments, then it’s time to try some of the options in the next section.
What Are Your Options for Bad Tenants?
Often landlords think that evictions are their best course of action when they encounter a bad tenant. And, in some cases, an eviction might be the correct option.
But, it should always be a last resort. Why? Because evictions are expensive and long. They ruin relationships and there’s no guarantee that you’ll get any of your money back.
Due to this, it’s important to consider all of your options before you decide on the eviction.
In this section, we’ll be going over some eviction alternatives, as well as more detail on the eviction process. That way, you can decide what’s best for your specific situation.
1. Altered Rent Payment or EOS
This isn’t the best option if your tenant is illegally subletting, disrupting, damaging property, or doing illegal things on the property.
But, if you’ve had a good tenant that lost their job because of the recession, then you might want to consider altered rent payments or an exchange of services. Remember that a good tenant can be hard to find.
So, if the only reason they need to go is because of money, then consider working with them. Altered rent payment is when you work out an arrangement to pay off rent through back payments once they get employment again.
Or, you could try an exchange of services. This is only possible if your tenant has some sort of trade they’re good at. For example, maybe they’re good at landscaping, electrical systems, or painting.
If you need these services, then instead of hiring an outside contractor, you can use your tenant.
Of course, there’s a limit to how long they can be living rent-free. Discuss it with them and consider your finances. Then, set a strict limit on when they will need to find employment again.
2. Cash for Keys
When you’re owed rent, the idea of paying your tenant to leave can seem quite counterintuitive. However, this process (which is known as cash for keys) is quite popular.
You can think of cash for keys as a type of relocation assistance. The landlord gives the tenant cash, or something else of value, in exchange for the keys and an agreed move-out date.
Again, if you’re feeling resentful of your tenant, then this can feel silly. But, cash for keys is almost always more affordable than the eviction process.
If you care for the tenant in any way, then this is also a good way to ensure that they land on their feet in the move process.
It’s common for the tenant and landlord to agree on the need to move out. But, they’ll often disagree on the terms, like move-out dates, rent settlements, and the condition of the property during move-out.
In these cases, it can help to bring in a trained professional. Mediators can provide an unbiased perspective for negotiating these details.
They can help you craft a detailed agreement that includes things like payment plans, timelines for repairs, move-out timelines, and resolution over the security deposit.
If the tenant is not willing to negotiate, then you will likely need to turn to eviction.
We’ve briefly gone over some of the cons that come with the eviction process. But, we haven’t covered what the average eviction process looks like.
That’s because different states have different laws when it comes to evictions. However, almost all evictions begin with an eviction filing to the court. Then, you will need to serve your tenant with an eviction notice.
What will follow is months or even years of hearings and court dates. On top of all of this, you will need to hire a lawyer to help you stay on top of all your filings.
While this is happening, your tenant will still be able to live on your property rent-free. That’s why it’s always preferable to try cash for key, or mediation, before proceeding with an eviction proper.
5. Sell the Property
One bad tenant can be all it takes to ruin the experience of being a landlord for someone. If you fall into this category, then you might want to consider calling it quits.
Many landlords think that they need to get the tenant or squatter off the property before they can sell it. But, that’s not true. The reality is that there is a variety of cash-for-home services geared specifically toward landlords with bad tenants.
These services, like the kind offered in Florida by Emperor House Buyers LLC, make life as easy as possible for you. They do this by accepting your house regardless of the current leasing situation or tenants living there.
We’ll go more into the specifics of selling in another section. Just know that this is the best option for people that want to wash their hands of the situation as soon as possible.
6. Property Management
If you don’t want to give up your rental income, but also don’t want to be a landlord, then consider property management. These companies will handle all of the headaches associated with rental properties.
In exchange, you give them a percentage of the money you make in rent. It’s a good option for people that want a more hands-off approach to renting.
What Are Your Selling Options?
Decided that the landlord life is no longer for you? If so, then it’s time to sell. Unfortunately, this can be challenging if you’re coming off of a bad tenant situation. First, you likely lost a lot of money due to the tenant.
So, you don’t have a lot of time for your house to sit on the market. The longer it does, the more money you’ll lose out on.
What’s worse, it’s common to see angered tenants destroy parts of the house when they’re being evicted. Or, they’ll leave behind a lot of trash, dirt, and hard-to-move furniture.
It can be a nightmare to deal with when you’re trying to sell. That’s why we recommend going with cash for homes service. These options are fast and they typically don’t mind what condition the house is in.
If you want to learn more about the different options when it comes to cash for homes, then check out our guide here.
Dealing With Bad Tenants? Contact Emperor House Buyers LLC
We hope this article helped you learn more about how to deal with bad tenants. There’s no denying that a bad tenant can leave an awful taste in your mouth.
If you’ve decided that being a landlord is no longer for you, then it’s time to sell your house and get out while you can. We recommend finding cash for house services, especially if your tenant left your home in a bad condition.
And, if you live in the Tampa Bay area, then you’ll be hard-pressed to find a better business than Emperor House Buyers LLC.
We require zero repair cost, no showings, and you can leave items behind. So, contact us today to get an offer as soon as possible.