Being a landlord involves handling numerous responsibilities, and negligence of any of these responsibilities can translate to financial jeopardy.
One of these tasks is on-time rent collection, a vital aspect of the business in keeping the revenue stream flowing. Unfortunately, part of the job is sometimes having to deal with ‘nightmare tenants’ or those who skirt around their payment obligations.
Dealing with this issue will not only cause a massive headache but also compromise the business’s finances and devalue the property.
Nightmare tenants are present across all socioeconomic and geographic backgrounds, and they are often difficult to spot. Nonetheless, steps must be taken to minimise the risks of stumbling into these types of clients. It could spell the difference between a lucrative setup or a financial drain.
Here are some ways to deal with nightmare tenants and lessen the damage they create:
Though it is difficult to truly spot a nightmare tenant during the initial process, there are still numerous red flags that can alert you to potential problems.
Thorough background checks and references are recommended in order to obtain a clear picture of their past rental history. Some landlords go through their applicants’ bank statements to identify any alarming spending habits.
You may look through their employment history to determine whether they are capable of shelling out monthly payments. And finally, check their legal status to see if they have the right to rent.
Effective enforcement means knowing the rules so that you have a legal basis to stand on. Some wily tenants can get away with unsavoury behaviour because they are familiar with the rules, and can spot loopholes to leverage.
In order to protect yourself from this type of exploitation, strive to become more informed so that you can counter their arguments and enforce your claim more effectively. Consult with lawyers and financial experts to ensure that you receive accurate and up-to-date information.
If you do end up hiring a ‘nightmare tenant’, it is best to prepare yourself for potentially dangerous situations. You may be in a tenuous situation now, but you can take steps to strengthen your hand and manage the negative behaviour.
One effective way to address the situation is by hiring a bailiff to enforce your collection. They are equipped with the skills necessary to ensure results while avoiding any complications or hassle.
Dealing with nightmare tenants may not be wholly preventable, but you can mitigate the damage with these steps.
MS Webb & Co. offers efficient commercial rent recovery services throughout England and Wales. Our job is to help you recover overdue rent on your property, while protecting your assets and business interests.
We will do everything in our power to resolve the case in a peaceable manner to preserve your relationship with your tenants. Rest assured, we work in a cost-effective and strategic manner to retrieve what is owed to you.
For any enquiries, feel free to contact us today.