The Bottom Line Supersedes Bad Tenants
Accordingly, a real estate investor recently sought the assistance of an attorney to sue a “bad” tenant because they wanted to break the lease early. While understandably annoying, this tenant had apparently performed well and actually offered a 60 day notice. Many real estate investors might see this as a blessing today, especially with rental rates rising and the opportunity to put in a long term higher paying renter. However, this landlord failed to see this particular instance as an opportunity. They were adamant to force them to stay or pay. Of course, there are some cases in which landlords can definitely sue for performance or breach of contract, but does it really make sense to take advantage of it because it is there? If you threaten bad tenants, they’ll probably leave anyway, but they might stay longer without paying for months until you can finally get them evicted. Who knows what they’ll do to your property in the meantime! “Being in the right” doesn’t really matter. Of course you should make sure you are correct, but just because you can go after them doesn’t mean it’s smart. In fact, there may be times you want to voluntarily pay them to leave faster. What about the bottom line in this case? Why pay an attorney to lose more money? Let them go. Make it easy. Maybe they’ll even refer you a great new tenant. Also, remember your reputation is priceless, and with the internet you only get one chance. So before flying into a rage and starting another expensive legal battle, no matter what the issue, think about the bottom line and your brand name first. Maintaining a good reputation can lead to long term wealth building.
There are endless stories of bad tenants circulating on the Internet, but a recent plea has to make real estate investors think twice about what they are doing.