Deadbeat tenants on the rise?

Q: For the past 20 years I have been buying and managing rental homes and I have to say that these days tenants are worse than I have ever experienced. Not all tenants are bad, but lately I have seen a noticeable increase in tenants who do not pay their rent and then leave in the middle of the night after causing a lot of damage to the house. At one rental, I recently had to spend almost $6,000 to fix up the house for re-renting.

I certainly understand the economy is bad in our area and many parts of the country, but my management company is unable to collect any money after the tenant moves out. The manager simply gives the case to a collection agency, and I never collect any money from the agency. It has been a repeated problem. Can you please suggest what I should do? Can you suggest a reputable collection agency?

A: You are not alone, as many landlords are finding that tenants who stay and pay, and treat the rental property with respect, are far and few between. It is clearly a function of the economy, and once you see signs that a tenant is having trouble paying rent you may want to have some open and direct conversations with him or her about how quickly you can regain possession of the rental rather than taking legal action and dragging out the eviction process.

As you unfortunately found out, the amount of damage that can be done in a rental home makes the nonpayment of rent seem like a minor issue. Your first priority should be simply to get your property back in decent condition and start over with a new tenant. It is easier said than done, but the best way to avoid these problems is to very carefully screen and select your tenants when they apply.

Qualified tenants with a stable rental history and good, reliable income are in high demand and can actually find landlords competing for them. I have even seen some tenants who have a resume or reference list that they bring with them that demonstrates to the landlord that they are qualified.

In these situations, you may find that you need to be flexible with your rental rates or upgrade your rental homes so they are more desirable than other comparable properties in your area. ...CONTINUED

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