Dealing with Difficult Tenants

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Information about Dealing with Difficult Tenants
Real Estate

Published on November 5, 2008

Author: chris_d

Source: slideshare.net

Description

Brent Davies' presentation to REIN (the Real Estate Investment Network) in Calgary Alberta on November 5th, 2008. Copies will be posted on http://www.brentdavies.com and http://www.chrisdavies.ca.

The basic idea? You need to present a professional face to your tenants. Brent mentions some of the usual faces people use, the pitfalls associated with them, and the face you need to develop. Watch for the slidecast, coming soon!

Photos are linked to the source and appropriate fees have been paid.

Difficult Tenants Putting On A Winning Game Face Presented by Brent Davies

Landlord Required Tools Know the Law (RT Act) Have Your Winning Game Face How The Courts Work The “Secret” to Finding the Best Tenant

Know the Law (RT Act)

Have Your Winning Game Face

How The Courts Work

The “Secret” to Finding the Best Tenant

New Real Estate Investors Find property Buy property Obtain financing Rent out the property Find another property

Find property

Buy property

Obtain financing

Rent out the property

Find another property

Equity Building Tenants Pay the rent on time Rarely call to complain Keep the property clean and in good condition

Pay the rent on time

Rarely call to complain

Keep the property clean and in good condition

Tenant Warning Signs Avoid You Call to give you grief about the property Complain about Repairs Call the Health Board Elaborate story about the situation

Avoid You

Call to give you grief about the property

Complain about Repairs

Call the Health Board

Elaborate story about the situation

Sometime in the Future Rent cheque is late You call the Tenant “ the cheque is in the mail” Cheque arrives 2 weeks later Bank returns cheque NSF

Rent cheque is late

You call the Tenant

“ the cheque is in the mail”

Cheque arrives 2 weeks later

Bank returns cheque NSF

No Longer an Equity Building Tenant 1 month rent outstanding Mortgage is outstanding When am I going to get my money? Now what?

1 month rent outstanding

Mortgage is outstanding

When am I going to get my money?

Now what?

 

All is Not Lost By learning how to deal with problem tenants, you will minimize the stress they can cause If you act promptly in a professional manner

By learning how to deal with problem tenants, you will minimize the stress they can cause

If you act promptly in a professional manner

What is the Worst That Can Happen? Lose several months of rent Unable to collect all damages owing Lose everything

Lose several months of rent

Unable to collect all damages owing

Lose everything

 

Now How Do You Feel? Scared Angry Taken advantage of Betrayed

Scared

Angry

Taken advantage of

Betrayed

Tenants Can Make my blood boil Raise my blood pressure Make me do stupid things Turn a rational person into an idiot

Make my blood boil

Raise my blood pressure

Make me do stupid things

Turn a rational person into an idiot

What You Do Now? Rush over to the tenant’s place? Bang on the door? Tell them all your troubles? Demand your money???

Rush over to the tenant’s place?

Bang on the door?

Tell them all your troubles?

Demand your money???

This is How Your Tenant Sees You!

What you want the Tenant to See

Not This Person

My Policy “ I Will Address the Issues” “ You Will Pay the Rent” Not “I Will Fix If You Pay” I Provide Good Homes for Good People

“ I Will Address the Issues”

“ You Will Pay the Rent”

Not “I Will Fix If You Pay”

I Provide Good Homes for Good People

Amateur VS Professional Emotional vs Rational Want Tenant to feel sorry for him vs don’t disclose his personal details to tenant Listens to sob stories vs know the story does not affect the situation Does not knows the rules vs knows the rules

Emotional vs Rational

Want Tenant to feel sorry for him vs don’t disclose his personal details to tenant

Listens to sob stories vs know the story does not affect the situation

Does not knows the rules vs knows the rules

What the Tenant Does Not Care About Your cash flow The value of your Investment Your Time Your mental health

Your cash flow

The value of your

Investment

Your Time

Your mental health

What the Tenant Does Care About Safe and secure place to live Their money Their time

Safe and secure place to live

Their money

Their time

Now You have 3 Choices Ignore the situation and hope the tenant fixes it Visit the tenant to discuss the issues Proceed directly to eviction process

Ignore the situation and hope the tenant fixes it

Visit the tenant to discuss the issues

Proceed directly to eviction process

Straight Talk with Tenants What are the issues? Can we resolve the issues? Formalize a payment plan Date and sign the payment plan Add if payment not made, it all becomes due and payable

What are the issues?

Can we resolve the issues?

Formalize a payment plan

Date and sign the payment plan

Add if payment not made, it all becomes due and payable

Why Not Just Serve the Notice Now? Once the notice is served the relationship is changed forever I have found most people will pay if treated with respect

Once the notice is served the relationship is changed forever

I have found most people will pay if treated with respect

No More Mr Nice Guy That’s it, no more chances “ Pay up or Get out” You must be firm and decisive

That’s it, no more chances

“ Pay up or Get out”

You must be firm and decisive

New Game Face

Reasons for Eviction Non payment of rent, 90% of all evictions Noise, damages, illegal activities Selling the property Change of use, condo, owner to occupy

Non payment of rent, 90% of all evictions

Noise, damages, illegal activities

Selling the property

Change of use, condo, owner to occupy

Alberta Eviction Rules Non payment of rent is a substantial breach of lease 14 day notice period Notice is void if rent is paid within the notice period

Non payment of rent is a substantial breach of lease

14 day notice period

Notice is void if rent is paid within the notice period

Serve the Eviction Notice Serve the notice in person or post on the door. Must be given directly to an adult who apparently resides in the unit. Document time, date of service and name of person who served the notice.

Serve the notice in person or post on the door.

Must be given directly to an adult who apparently resides in the unit.

Document time, date of service and name of person who served the notice.

Common Eviction Mistakes “ Your partner said I could…” “ I thought you were not serious” “ Changing your mind”

“ Your partner said I could…”

“ I thought you were not serious”

“ Changing your mind”

Tactical Errors Cutting off utilities Changing the locks Entering the suite without proper notice Intimidation- yelling, swearing, threats

Cutting off utilities

Changing the locks

Entering the suite without proper notice

Intimidation- yelling, swearing, threats

Winning Techniques Only 1 person to deal with tenant Be firm, you pay or leave 4 days later, call to set up move out inspection 4 days to go, call to confirm the appointment

Only 1 person to deal with tenant

Be firm, you pay or leave

4 days later, call to set up move out inspection

4 days to go, call to confirm the appointment

What is Your New Game Face? The Baby

The Baby

What is Your New Game Face? The Professional

The Professional

What is Your New Game Face The Enforcer

The Enforcer

Your New Game Face

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