Dealing With Difficult Tenants

Difficult tenants are a reality of being a landlord. You’re going to have some. It’s inevitable. Defining “difficult” is easy and can include a variety of things. They don’t pay the rent. They don’t pay the rent on time. They’re noisy. A general lack of reliability with the given expectations. Sometimes they’re even belligerent and unreasonable. With that said, difficult tenants can also be time consumers. Tenants who complain incessantly about the most frivolous of things, are unreasonably sensitive, contact you constantly about the smallest of items, or even people who are combative with other tenants in your property for no good reason. Here’s a few tips for dealing with those that make managing your property difficult.

  • Define expectations: I do this all the time when renting to new people. Call it the old “I made it clear” kind of approach. I’m not talking about clearing up when you expect the rent. That’s a given (but a good idea to let them know nonetheless – i.e. a written lease). Let a prospective tenant know about your expectations with respect to noise, civility with other tenants (if you have a multi-unit), property routines like garbage removal and laundry schedules, and your expectations when it comes to issues and resolving them together. I once had a tenant who considered himself to be the Wyatt Earp of a fourplex I own. Besides constantly calling people out on every little thing, he didn’t seem to understand me when I explained to him that I didn’t need a superintendent, and that he was to report an issue that he was having to me directly.
  • Have A Proactive, Reasonable, and Responsive Attitude: Most tenants will tell you, an unresponsive and defensive owner is the main ingredient in what can be a resentful relationship between landlord and leasee. Imagine if you were paying someone rent, and they were constantly unavailable, nowhere to be found, and defensive when it came to addressing a problem that you considered fundamental in your home. As an owner, you have an obligation to be attuned to the needs, within reason, of your tenants. Things happen when you are a property owner, and most tenants will understand that. If you show a keen interest in working with those who rent from you, and are committed to finding a solution, you’ll find your tenants will respond – and this is one of the most effective ways to avoid having difficult tenants in the first place. It is after all, their home. Secondly – always be reasonable. Expect a reasonable attitude from the tenant as well. Be mindful of what you’re saying and how you’re dealing with an issue with a tenant.
  • Learn The Landlord and Tenant Act: Visit the Landlord and Tenant Board, or the equivalent entity or body in your municipality or province. Know your rights, learn and understand the rights of your tenants, and learn the protocols and processes that are associated with incidents and situations – including the non payment of rent and rental deliquency. Follow the rules. Be prepared for a difficult tenant to become a bad tenant.
  • Avoid the board if you can: It’s inevitable that you’ll probably end up attending a hearing at the provincial board. Hence the importance of knowing the act in your province. With that said – avoid the board if possible. Also – I find a lot of landlords I speak with use the “board card” or the threat of court way to early in any dialogue. If you pull that out the wrong way, you can turn what is a resolvable situation into a full fledged problem. You’ll be fronting the costs to resolve an issue or evict a tenant formally and it’s not fun. I’m a big believer that you should be serving notices and following process only in the worst of situations – like refusal to pay rent, habitual late payment, unruly behaviour or damage, or even with someone who is impossible to communicate with. if it’s possible to work out issues in a productive way without being in front of an arbitrator, do it.

Share your thoughts about how to deal with a difficult tenant.

Ottawa’s Residential Rental Vacancy Rate Climbs to 2.5%

A few days ago, Ottawa realtor Roch St. Georges sent this my way, courtesy of the Canada Mortgage and Housing Corporation. It’s the CMHC’s rental market report for 2012. The Ottawa Business Journal also had a nice little piece about it this morning that sums it up. Bottom line – the vacancy rate is up slightly. There’s a few factors at play here, like condos being snapped up by landlords, low interest rates, etc…but the vacancy rate is expected to drop next year.

Here’s a few choice bits from the report…

  • Ottawa’s residential vacancy rate edged in at 2.5 per cent for the year, up from 1.4 per cent a year earlier.
  • The average cost of renting a two-bedroom apartment also increased by two per cent. That’s lower, however, than the 2.3 per cent increase that took place in 2011.
  • An increase in the size of the rental inventory has played a role in the vacancy rate increase, as many of the new condominium units sprouting up across the city are being purchased by investors and rented out.
  • Nationally, Canada’s overall apartment vacancy rate has risen over the past year, with an increased supply of rental units and a slowdown in household formation by Canadians being cited among the reasons.

Read the article at the OBJ here: http://www.obj.ca/Real%20Estate/Residential/2012-12-13/article-3139634/Rental-vacancy-rate-climbs-to-25-CMHC/1

Read the CHMC report here: http://www.cmhc-schl.gc.ca/odpub/esub/64423/64423_2012_A01.pdf

Nova Scotia Changes Their Landlord & Tenant Act

Changes are a brewin’ in Nova Scotia. The province has made some amendments (what many landlords and renters consider to be overdue) to their landlord and tenant act that have taken effect November 15th.

Nova Scotia is a bit of a unique landscape for landlords and renters alike. OpenFile published a story in August entitled How To Survive Renting in Halifax – a piece that shone the light on some bad Haligonian landlord situations involving security deposits and issues related to the reasonable enjoyment of some occupied units.  The below is an excerpt from the piece by Lizzy Hill:

At first glance, our city seems like an ideal spot to rent an apartment in. The average rent for a two-bedroom apartment in 2011 was $925, compared with $1,237 in Vancouver and $1,149 in Toronto. And while other cities across Canada recently experienced slight decreases in their apartment vacancy rates, Halifax’s vacancy rates increased from 2.8 per cent in April 2011 to 3.2 per cent in April 2012—people haven’t been snatching up apartments as quickly as they did in years past, so renters presumably have a little more to choose from.

The Residential Tenancies Program sees around 5,000 applications to the director each year—meaning around five per cent of tenant-landlord relationships require dispute/resolution services each year, according to Service Nova Scotia and Municipal Relations’ spokesperson Susan Mader-Zinck. And those are just the cases that make it through theboard program’s bureaucratic application process.

CBC also published a story back in April of this year about groups of residents who were demanding better conditions on units they’ve been renting, and calling for a crackdown on bad landlords. Yikes.

The first significant change is that renters will now have automatic tenure – or right to tenancy, which means landlords have to provide a reason to evict a resident, and there has to be a hearing. Fixed term leases are an exception to this. Prior to these changes, tenants didn’t have tenure until they’d been living in an apartment for five years – at which point they were considered a long-term tenant and were afforded more rights. In that five years, a landlord could opt not to renew a tenant without reason. Some landlords will view this as a negative implication in the act’s changes, as in effect, it makes evicting tenants who pose a problem more difficult. Another perspective on this is that landlords will be extra particular when choosing a candidate to sign a lease with.

Another big change is that rent can only be 15 days late before the landlord can give a tenant notice that the lease will end. Tenants used to have 30 days under the old act. This is a positive change for landlords to be able to react at the RTP level. Another big change includes giving tenants on fixed-term leases the ability to end their leases early, without financial penalties, for health reasons, as landlords need to have the properties in good condition on all times if they want to rent it, and that’s why if a problem happens and a pipe broke they need to use a Water Damage Restoration Matawan service to fix this as soon as possible.

Landlords are now required to give a copy of the Residential Tenancies Act to tenants within 10 days of the lease being signed, the keys being provided, the stated date of move in on a lease, or the move in date itself.

Some of these changes are efforts to address some of the concerns residents have about complaints to landlords resulting in a simple request to leave.

For more information on these changes, check out the following links:

Are you a landlord in Nova Scotia? What do you think of these changes? Share your stories and perspectives here. We’d love to hear them.