Anyone who’s been a landlord in Los Angeles for any length of item knows that headaches and hassles are simply part of the job description. And number-one among those headaches/hassles is problem tenants. For truly bad tenants in Los Angeles, eviction is always an option. But that can be a lengthy and expensive process, and it’s not always a guaranteed outcome in the State of California. As a result it’s better to find other ways to deal with bad tenants to solve the problems. Below, you’ll find 5 ways to deal with bad tenants in Los Angeles in order to avoid having to have recourse to eviction.
1. Tenants Who Won’t Pay Rent in Los Angeles
A common category of bad tenants in Los Angeles is those who just cannot pay their rent. And this, of course, will adversely affect your cash flow.
The thing to keep in mind, though, is that tenants don’t pay for a variety of reasons, and often they’re not being malicious or trying to stiff you. “Tenants.” industry experts say, “can withhold rent from landlords for a number of reasons, from cash flow shortages or temporary unemployment, to repair and maintenance disputes. Communication is critical when confronting this issue, and it’s important to understand the tenant and the nature of the issue and try to negotiate, if possible.”
As a landlord, you have a couple of options to solve this problem. The first and most effective is setting up a payment plan that makes paying more manageable for the tenants. You could, for example, when tenants are struggling financially . . .
- Implement “a policy of accepting a partial payment from a resident once per year”
- “[P]rorate the late fees and delinquent rent over the remainder of the tenant’s lease”
- Allow weekly partial payments instead of larger monthly payments
- Apply the security deposit to the delinquent rent payments
Another option is to change the tenants’ living arrangements. “If a tenant can no longer afford the rent, landlords can set them up with roommates or move them to smaller, lower-cost units.”
Ultimately, a Los Angeles landlord should consider their own financial obligations to pay morgage, taxes, insurance, and utility expenses as well. Even if you are a Los Angeles landlord and have a Los Angeles tenant who is being communicative about why they cannot pay rent, you the property owner needs to assess your own financial situation and determine if flexibility is something you can provide. Will allowing further delayed payments result in an inability for you to make your own mortgage payments?
2. Tenants Having Problems With Other Tenants
And then there are those who are bad tenants in Los Angeles because they are too loud, bring over too many overnight guests, park in other tenants reserved parking spots, or are just obnoxious. Despite your best screening efforts, this kind of tenant can still slip through and can create problems for you and other tenants.
#1 Pets As the population of pet owners across Los Angeles grows, there’s a good chance that some pets will be well behaved, while others might be well haved pets for a variety of reasons. This can often cause problems between tenants. For example, common situations arise between owners of dogs who might bark too loudly or are overly aggressive, causing stress to other tenants and pets living in the same property.
The first step in dealing with this kind of problem tenant is to encourage and allow the tenants to resolve the problem themselves. As is the case with most human problems, encouraging respectful 1:1 communication between tenants is the best policy. Whether the communication is through a pleasant letter or in person, this step should be encouraged before getting the landlord involved. “Make a clause in the lease that specifically states that all tenants are to make every able attempt to settle arguments without your intervention. Include a message stating that if you must get involved, one tenant might not be pleased with the resolution, and someone stands a good chance of leaving the property.”
#2 Loud Music Music can be a source of joy, inspiration, and energy for many to enjoy at the end of a long workday or during a workout at home. However, some tenants are not aware that many of their neighbors can also hear the loud music, especially the tenants who share common walls. This can also strain the relationship between tenants on a rental property
But you may have to step in. In that case, mediation may be called for. Just be sure to “explain the consequences in a calm manner to aid in resolution. At some point, your residents hopefully understand that the net impact is on them, not you.” Also make “sure that any lease or rental agreement contains property regulations and rules, in addition to tight clauses regarding these disagreements.” A clause like this sounds severe and is meant to encourage the one-to-one tenant communication before escalation to a landlord occurs.
#3 Threatening Behavior Sometimes the attempt for one tenant to resolve issues ends up inadvertently heightening tenant situations. If this is the case and one or both tenants feel physically threatened, it might be a good idea for the landlord to step in and potentially involve law enforcement.
3. Tenants Who Pay Late in Los Angeles
Some tenants do pay, but they frequently pay late – not withholding payment, but just late. If rent is due on the 1st, these late paying tenants are always paying 5 to 6 days late without even notifying you. In dealing with these bad tenants in Los Angeles, it’s wise to keep in mind that the reason for late rent payments may be fairly innocent, something like mere forgetfulness.
You could meet with these tenants “to discuss their situation and why the rent is always late. Assuming that these tenants might just be unorganized and forgetful people, you could also do things like waive late fees and other penalties if they promise to pay any late rent in full.” This would easily prompt them to pay their late rent and be encouragement for paying ontime in the future.
Another effective tactic is to send out payment reminders. If you are a Los Angeles landlord that self-manages your properties, consider using calendar invites or reminder notifications that are sent to a tenants email address. Of course, ask them for permission before bomboarding them monthly. Though it takes a little extra effort and time, it could be an easy fix for the problem.
4. Don’t Renew the Lease
When the methods outlined above for dealing with bad tenants in Los Angeles don’t produce results, you still may not have to resort to eviction which can take some time in the Los Angeles rental market and court system.
An option you have at this point is simply to refuse to renew the lease. Just be aware that this typically isn’t an immediate solution and that you need to “understand your local laws related to tenant protections before you do this. The updated tenant protection laws in the State of California and City of Los Angeles frequently change, so you should determine if your property falls under Just Cause Ordinance or Rent Stabilization Ordinance. Usually, you can send your tenant a letter that informs them that their lease will not be renewed once it expires. You may need to give them 30, 60, or 90 days’ notice, depending on your state and local laws.”
5. Consider a “Cash for Keys” Agreement
Another last-resort solution, short of eviction, for dealing with bad tenants in Los Angeles is the “cash for keys” agreement. It will cost you, but it will also get a bad tenant out of your hair and solve the problem. “A cash for keys agreement is a legally binding contract, whereby you pay a tenant a lump sum of money, and their lease is canceled, and they have to move out of your property.”
But, you may be wondering, why should you pay a bad tenant to move out? For the simple reason that it makes financial sense.
Sometimes, paying a tenant to leave costs much less than an eviction process where you need to hire an attorney without any outcome being guaranteed. It can easily cost $5,000 to evict a tenant and take months to do so. If you can just pay $1,000 and have a bad tenant move out within a week, you’ll be able to save a bunch of money – and start renting your property to a more qualified tenant right away.
Even if the cash for keys payment (and associated attorney fees) is equal to the costs of eviction, the Los Angeles landlord saves time with a cash for keys if tenant agrees to move out quickly. Why? If the difficult tenant behavior is one that disturbs other tenants or accelerates wear and tear on your property, consider that reducing their time of tenancy through cash for keys can save you additional money in lost rent and repairs. The unknown is time to complete eviction, so a cash for keys could save you in both time, stress, and convenience.
6. Get Advice or Consider Selling . . .
Whatever method you choose to deploy in dealing with bad tenants, make sure you’re aware of all the legal ramifications and implications. Tenant-protection laws are far broader than they were just a few years ago. Your best bet is to consult an experienced Los Angeles investor to get help understanding exactly what you can and can’t do as a landlord. So for assistance dealing with bad tenants in Los Angeles, contact us today at (626) 863-7006.