Anyone who has been a landlord for any significant period knows that headaches and hassles come with the territory. One of the most common challenges landlords face is dealing with problem tenants. While eviction is always a potential solution for particularly troublesome tenants in Allentown, PA, the process can be lengthy and costly. It’s often more effective to explore alternative strategies for addressing tenant issues. Here, we present five effective ways to manage difficult tenants in Allentown, PA and avoid having to have recourse to eviction.
Tenants Who Won’t Pay
One of the most frustrating issues landlords face in Allentown, PA is tenants who fail to pay their rent. This problem can severely impact your cash flow and create financial strain. However, it’s essential to remember that tenants often encounter a variety of circumstances that can lead to missed payments. They may not be acting maliciously; instead, they could be dealing with temporary financial difficulties, such as job loss or unexpected expenses. Industry experts emphasize the importance of communication in these situations. Understanding the root cause of the issue can help you negotiate a solution that works for both parties.
As a landlord, you have several strategies at your disposal to address non-payment issues. One effective approach is to establish a flexible payment plan that allows tenants to manage their financial burdens more easily. For example, you might consider:
- Implementing a Policy for Partial Payments: Allow tenants to make a partial payment once a year to alleviate financial pressure.
- Prorating Late Fees: Instead of imposing full late fees, prorate them over the remainder of the lease term to make it more manageable.
- Weekly Payments: Offer the option for tenants to pay rent weekly instead of monthly, providing them with more flexibility.
- Using Security Deposits: If necessary, apply the security deposit to overdue rent payments to help tenants get back on track.
Additionally, if a tenant can no longer afford their current rent, consider helping them find roommates or relocating them to a more affordable unit. This can maintain your rental income while providing a solution for the tenant’s financial struggles.
Tenants Who Have Issues with Others
Another common challenge arises when tenants become problematic due to issues with their neighbors. Noise complaints, disruptive behavior, or general obnoxiousness can create tension in your rental property, affecting the peace of mind for all residents. Despite your best screening efforts, these types of tenants can slip through the cracks, causing headaches for you and others.
To address these disputes, first encourage tenants to resolve conflicts amongst themselves. You might include a clause in the lease that requires all tenants to attempt to settle disagreements without your intervention. Make it clear that involving you may lead to unsatisfactory resolutions for one party, increasing the risk of dissatisfaction.
If tenants are unable to resolve the issue on their own, you may need to step in as a mediator. When doing so, explain the situation calmly and outline potential consequences for continued disputes. It’s crucial to communicate that the ultimate impact of these issues will affect all tenants, not just you as the landlord. Ensure that your lease agreements contain clear regulations regarding tenant conduct and conflict resolution procedures to minimize future issues.
Tenants that Pay Late
Some tenants fulfill their obligations but consistently pay rent late. While this can be frustrating, the reasons behind their tardiness might be benign, such as simple forgetfulness. To tackle this issue, consider meeting with the tenants to discuss their payment habits and the reasons behind their delays.
You could also waive late fees temporarily as an incentive for them to commit to paying their rent on time moving forward. Another effective strategy is to send out payment reminders before rent is due. While this may require some extra effort, it can significantly reduce the likelihood of late payments and help maintain a positive landlord-tenant relationship.
Do Not Renew Lease
If the methods above don’t yield the desired results, another option to consider is not renewing the lease when it expires. This course of action typically requires a more extended timeline, so be sure to familiarize yourself with local tenant protection laws before proceeding. In many jurisdictions, you’ll need to provide tenants with advance notice—typically 30, 60, or 90 days—indicating that their lease will not be renewed once it concludes.
By taking this approach, you can avoid the lengthy eviction process while seeking to find a more suitable tenant.
Considering a “Cash for Keys” Agreement
As a last-resort strategy, you might explore a “cash for keys” agreement. While this approach involves some expense, it can be an effective way to resolve tenant issues without resorting to eviction. In a cash for keys agreement, you offer the tenant a lump sum of money in exchange for vacating the property, thereby canceling their lease.
You might wonder why you’d pay a problematic tenant to move out. The answer lies in cost-effectiveness. Evicting a tenant can easily run upwards of $5,000 and take months to complete. By contrast, offering $1,000 for them to move out promptly allows you to re-rent your property to a more qualified tenant much sooner, ultimately saving you money in the long run.
Proceed With Caution
Whatever method you choose to deploy in dealing with bad tenants, make sure you’re aware of all the legal ramifications and implications. Tenant-protection laws are far broader than they were just a few years ago. Your best bet is to consult an experienced Allentown, PA investor to get help understanding exactly what you can and can’t do as a landlord. So for assistance dealing with bad tenants in Allentown, PA, contact us today at (484) 549-0019.