If you’re looking for a way to make extra cash, consider starting a rental property business. According to recent studies, the average rental property ROI (return on investment) is around 10%. That means that for every $1,000 you put into your rental property business, you can expect to earn $100 in profits.
There are a few things to keep in mind if you want to be successful in the rental property business. First, it’s essential to find a good location for your properties. You want to find a neighborhood that is growing or has growth potential. You also want to ensure that the schools in the area are good, as this will attract families with children.
Another essential factor to consider is the features of the properties you’re renting out. You want them to be in good shape to attract quality tenants. If the properties are run-down or need repairs, it will be challenging to find tenants, and you will likely end up losing money.
If you’re able to follow these tips and invest in a quality rental property portfolio, you can expect to see healthy profits for many years to come.
However, one annoying problem might make it challenging to enjoy the benefits of the rental property business: rowdy tenants. Here are a few tips for dealing with rowdy tenants and keeping your rental business running smoothly.
Solidify Tenant Agreement Policies
The first step to dealing with rowdy tenants is solidifying tenant agreement policies. You want to ensure that all of your tenants understand the expectations and rules before moving in. This step will help to prevent problems down the road.
The tenant contract should include clauses about noise levels, parties, and other disruptive behavior. It’s also a good idea to have a clause that gives you the right to evict a tenant if they violate the contract.
Any violation should result in an eviction notice, and you should never make exceptions. If you do, it will set a precedent, and other tenants will also begin to push the boundaries.
Be Firm But Fair
Once your contract is in place, it’s essential to be firm but fair with your tenants. Tell them you’re serious about the rules and that any violations will not be tolerated.
However, you also want to understand and work with your tenants if there are problems. For example, if a tenant is having a party and the noise gets too loud, you can ask them to turn down the music or keep it to a minimum after 10 pm.
If they violate the terms of their contract, you can start the eviction process.
It’s also essential for you to keep communication open with your tenants. You want them to feel comfortable coming to you with any problems or concerns.
If they know you’re approachable and willing to work with them, they’ll be more likely to follow the rules and avoid disruptive behavior.
You can also use communication as a tool to prevent rowdy tenants. For example, if you know a tenant is having a party, you can send them a text or email reminding them of the noise policy.
This action will let them know you’re aware of what’s happening and expect them to follow the rules.
If a tenant breaks the rules, it’s essential to enforce consequences. The first step is to send them a warning notice. This notice should state the specific violation and the date it occurred.
It should also include a warning that they will be subject to eviction if they continue to violate the rules.
If the tenant ignores the warning or continues to break the rules, you can start the eviction process. The eviction process will vary depending on state laws, but it typically involves giving the tenant a certain number of days to vacate the property. You can file an eviction lawsuit if they don’t leave within that timeframe.
While this process can be time-consuming and expensive, following through with it is essential if you want to preserve the peace in your rental properties. If you can’t start the process because the rowdy tenant is uncooperative, you should consider looking for a lawyer’s help. The attorney can serve as a mediator for peaceful negotiations between rowdy tenants and landlords.
If one of your rowdy tenants is a business, you might need commercial eviction services to ensure they leave quickly and without damaging your property.
Dealing with rowdy tenants can be challenging, but taking a firm stance is essential. Solidify tenant agreement policies, be firm but fair, and enforce consequences if they break the rules.
These steps can protect your investment and keep your rental business running smoothly.