About Deadbeat Tenants
Freeloader, sponger and bum are just a few words used to describe an individual who habitually takes advantage of others. Another term widely used in the real estate field is "deadbeat tenant," a person skilled at avoiding payment of rent. This small scale con artist weaves tales of misfortune and often disappears leaving landlords with financial and physical damages. What can landlords do about a deadbeat tenant? The best defense is an educated landlord equipped with knowledge about legal eviction and how to spot an undesirable renter.
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Identification
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A deadbeat, by definition, is a person who intentionally avoids paying his debts. A tenant who has reached the point of being evicted isn't necessarily a deadbeat. Legitimate hard times force an otherwise good tenant into dire situations. The difference between a tenant experiencing difficult times and a genuine deadbeat is history. A deadbeat tenant often has a background of debt, multiple addresses and a line of stories (some believable, some not).
Prevention/Solution
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Experts agree, the best way to deal with a deadbeat tenant is to avoid him. Adam VanBuskirk, author and founder of landlord assistance websites, details methods of identifying deadbeat tenants. According to VanBuskirk, the rental application reveals "red flags," such as poor work history and insufficient finances. A prospect's attitude and "body language" conveys his respect (or lack of) toward the landlord and, ultimately, the property itself. The individual's appearance often hints at living style--clean or dirty. Credit reports are an inexpensive way to assure a client's ability to pay. Connections and "word-of-mouth" are valuable tools in a small community.
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Function
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Though often expensive and time consuming, eviction is usually the only way to rid a property of a deadbeat tenant. The Landlord Protection Agency offers tips for legal eviction. Landlords should always consult their state laws on eviction and follow them precisely. Tenants may be evicted for failure to pay rent, breaking their lease, damaging the residence or other "good cause" reasons (defined by state law). The process normally begins with a notice to leave or "notice to quit." This notice, if unsuccessful, is followed by a lawsuit to remove the tenant and a court ordered eviction. The entire process, depending on the state, can take a month or more during which the deadbeat tenant avoids paying rent that the landlord may have difficulty collecting.
Warning
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It would seem a property owner could remove a deadbeat tenant by much easier means than eviction. After all, it is their property. As with any group of people, landlords are comprised of good and bad individuals. Laws intended to protect renters from the actions of bad landlords can prevent conscientious landlords from removing deadbeats. Landlords cannot force tenants from their property by means other than legal eviction. Changing locks, shutting off utilities and removing tenant possessions are all illegal means.
Considerations
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With the prospect of deadbeat tenants, are rental properties worth the risk? Savvy landlords, owning complexes or multiple properties, can make a profit. However, CNN reports over 40 percent of property owners attempting to rent single-family homes fail to make money. Deadbeat tenants play a large part in this failure. See the Resources section for a link.
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