Dealing with difficult tenants can be one of the most frustrating aspects of owning rental property. Late rent payments, property damage, and constant complaints can turn a profitable investment into a stressful headache. If you’re a landlord facing bad tenants in Washington, here are five strategies to help you manage the situation effectively while protecting your property and investment.
Anyone who’s been a landlord for any length of item knows that headaches and hassles are simply part of the job description. And number-one among those headaches/hassles is problem tenants. For truly bad tenants in Washington, eviction is always an option. But that can be a lengthy and expensive process, so it’s better to find other ways to deal with bad tenants to solve the problems.
Sometimes, bad behavior stems from simple misunderstandings or miscommunication. If your tenant is consistently late on rent or not following the lease agreement, the first step is to have a candid conversation. Approach the situation calmly and professionally, and try to understand if there’s a valid reason behind their actions. Clear, open communication can often resolve issues before they escalate.
Below, you’ll find 5 ways to deal with bad tenants in Washington in order to avoid having to have recourse to eviction.
1. Tenants Who Won’t Pay
A common category of bad tenants in Washington is those who just won’t pay their rent. And this, of course, will adversely affect your cash flow.
The thing to keep in mind, though, is that tenants don’t pay for a variety of reasons, and often they’re not being malicious or trying to stiff you. “Tenants.” industry experts say, “can withhold rent from landlords for a number of reasons, from cash flow shortages or temporary unemployment, to repair and maintenance disputes. Communication is critical when confronting this issue, and it’s important to understand the tenant and the nature of the issue and try to negotiate, if possible.”
As a landlord, you have a couple of options to solve this problem. The first and most effective is setting up a payment plan that makes paying more manageable for the tenants. You could, for example, when tenants are struggling financially . . .
- Implement “a policy of accepting a partial payment from a resident once per year”
- “[P]rorate the late fees and delinquent rent over the remainder of the tenant’s lease”
- Allow weekly partial payments instead of larger monthly payments
- Apply the security deposit to the delinquent rent payments
Another option is to change the tenants’ living arrangements. “If a tenant can no longer afford the rent, landlords can set them up with roommates or move them to smaller, lower-cost units.”
In any landlord-tenant dispute, thorough documentation is your best defense. Keep detailed records of late payments, property damage, complaints, and any warnings or notices you’ve issued. These records will be essential if the situation leads to legal action. Additionally, written communication via email or letters creates a paper trail that can protect you in case the tenant disputes your claims.
2. Tenants Having Problems With Other Tenants
And then there are those who are bad tenants in Washington because they are too loud or just obnoxious. Despite your best screening efforts, this kind of tenant can still slip through and can problems for you and other tenants.
The first step in dealing with this kind of problem tenant is to encourage and allow the tenants to resolve the problem themselves.“Make a clause in the lease that specifically states that all tenants are to make every able attempt to settle arguments without your intervention. Include a message stating that if you must get involved, one tenant might not be pleased with the resolution, and someone stands a good chance of leaving the property.”
But you may have to step in. In that case, mediation may be called for. Just be sure to “explain the consequences in a calm manner to aid in resolution. At some point, your residents hopefully understand that the net impact is on them, not you.” Also make “sure that any lease or rental agreement contains property regulations and rules, in addition to tight clauses regarding these disagreements.”
3. Tenants Who Pay Late
Some tenants do pay, but they always pay late – not withholding payment, but just late. In dealing with these bad tenants in Washington, it’s wise to keep in mind that the reason for late rent payments may be fairly innocent, something like mere forgetfulness.
You could meet with these tenants “to discuss their situation and why the rent is always late. You could also do things like waive late fees and other penalties if they promise to pay any late rent in full.” Another effective tactic is to send out payment reminders. Though it takes a little extra effort and time, it could be an easy fix for the problem.
Your lease agreement is a legally binding contract, and enforcing its terms is crucial when dealing with bad tenants. If your tenant is violating the lease—whether by not paying rent on time, causing damage, or disturbing neighbors—remind them of the specific clauses they’re breaking. Issue official warnings if necessary, and let the tenant know that further violations could lead to eviction.
4. Don’t Renew the Lease
If you’re dealing with a problematic tenant but don’t want the hassle of eviction, choosing not to renew the lease can be a simple and effective solution. When the lease term is nearing its end, you have the option to let the tenant know that you won’t be offering a renewal. This approach is a less confrontational way to remove a bad tenant while avoiding the legal complexities of eviction.
Be sure to provide the tenant with proper notice, as required by Washington rental laws. Typically, you’ll need to give at least 30 to 60 days’ notice, depending on local regulations. This allows the tenant time to make other living arrangements, and it gives you a clear, non-disruptive way to move forward.
Not renewing the lease is often the best choice if the tenant has been difficult but not to the extent that immediate eviction is necessary. It allows for a clean break once the lease expires, and it gives you the opportunity to find a new, more reliable tenant for your property.
5. Consider a “Cash for Keys” Agreement
Another last-resort solution, short of eviction, for dealing with bad tenants in Washington is the “cash for keys” agreement. It will cost you, but it will also get a bad tenant out of your hair and solve the problem. “A cash for keys agreement is a legally binding contract, whereby you pay a tenant a lump sum of money, and their lease is canceled, and they have to move out of your property.”
If things have reached a point where eviction seems inevitable, a “cash for keys” agreement could be a quicker, less stressful alternative. Essentially, you offer the tenant a financial incentive to vacate the property voluntarily. While it may seem counterintuitive to pay a problem tenant, it can save you the time and money involved in a formal eviction process, and it ensures that your property is vacated peacefully and promptly.
But, you may be wondering, why should you pay a bad tenant to move out? For the simple reason that it makes financial sense.
“It can easily cost $5,000 to evict a tenant and take months to do so. If you can just pay $1,000 and have a bad tenant move out within a week, you’ll be able to save a bunch of money – and start renting your property to a more qualified tenant right away.”
6. Consider Legal Action or Eviction
When all else fails, and the tenant continues to breach the lease agreement or cause significant issues, it may be time to take legal action. Eviction is never an easy choice, but sometimes it’s the only solution to protect your investment. Make sure you follow local Washington landlord-tenant laws carefully to avoid potential legal setbacks. Consulting with a real estate attorney can help ensure you’re taking the proper steps.
But Be Careful . . .
Bad tenants can make property management feel overwhelming, but with these strategies, you can regain control of the situation. Whether you’re addressing issues through communication or pursuing legal action, handling the problem promptly and professionally is key to maintaining a successful rental property in Washington.
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 Washington investor to get help understanding exactly what you can and can’t do as a landlord. So for assistance dealing with bad tenants in Washington, contact us today at (509) 906-3680.