Bad Tenants – What They Can Cost
Tenants are a necessary part of all investment properties, without them there is 0 income potential and essentially your property will become just another outgoing cost. However, in some cases, a troublesome tenant can be more costly in the long run than a vacancy. So if you’re a landlord, take a look at what we deem to be the four most common types of bad tenants so that you can familiarise yourself.
The tenant that never pays
The most known bad tenants are the tenants that never pay. This kind of tenant will disregard the lease agreement and will consistently fail to perform the weekly duty of paying rent. These types of tenants can cause enormous stress for landlords, particularly if the landlord is relying on that income. It is only natural that tenants of this nature will have reasons for their late payments, but essentially they signed the lease agreement are liable for these payments.
The tenant that’s always late
This kind of tenant is also surprisingly common. This tenant might not always pay on time, they might even avoid the calls of a property manager, but even if it’s a little late they do still deliver what’s most important the rent. However, sometimes these late payments can really affect the cash flow of a landlord and ultimately paying rent late is against the RTA’s general rental agreements. In cases like this, the lack of punctuality on a tenant’s can make it difficult for landlords to trust their tenants and to budget correctly.
The tenant that breaks all of the rules
For any rental, there are contractual obligations that must be followed by the tenant, whether these are outlined in the rental agreement by the landlord or the property manager. However, some tenants do not follow the rules specified in the agreement and will attempt to discretely break them. For example, It is very common for landlords who have a no pets clause in their rental agreements to later find out that their tenants have been housing pets.
The tenant that ruins the property
This is the kind of tenant that regularly damages or destroys property whether it be intentionally or unintentionally. It is expected that the tenant will keep the property clear of waste, clean and will avoid negligent damage, however for some, this is not always the case. This type of tenant can be the most costly and in the long run, can cost the landlord a lot of money out of pocket.
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