If you remember high school or college, you probably have at least one memory involving working in a group. A project is assigned, work is divided, and you separate to complete your tasks. There usually emerges a leader who keeps everyone on track, ultimately completing the work of the less competent or less involved. Because everyone receives the same grade, one person picks up the slack for the rest. And it is allowed to happen, largely because many young people lack the skills to hold other members accountable.
But you’re probably not in high school or college anymore and there’s more to lose should you let tenants get away with negligence. There are whole websites dedicated to bad renters, so it should be no secret that it is something all landlords face at one time or another. And the best landlords don’t dwell on the anecdotal evidence proving that their job is hard—they do something about it.
Renting to someone is a business deal, so it should be treated as such. If a tenant fails to pay rent or damages your property, they should be held responsible for their actions. Get a judgment against the tenant and collect interest. Let it stare them in the face on their credit report, let it prevent them from buying a car or a house until it is paid. Remember, this is money owed to you, so don’t feel bad if you have to take legal measures to get it.
The only way a judgment can be erased is through bankruptcy, so they’ve got real staying power. A judgment can collect interest (more money for you!) over time, so don’t hesitate to file one because your tenant doesn’t currently have money. Time is on your side—eventually, the tenant will have the money (and hopefully the desire) to pay. Remember that you also have the power to negotiate—a bit of money here and there or in scheduled payments is better than no money at all. Eventually, your tenants—especially when the amount of money owed to you is reasonable, as it is with most rental situations—will be able to pay.
Victim stories aren’t to be told by landlords—you’re in control as long as you act like a businessperson and a boss and hold your tenants accountable for their actions toward and against your property. Embrace success and create wealth by establishing a narrative of accountability. (photo credit: Lee Cannon via photopin cc)
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