Why Tenants Are Not Your Friends

I’ve spent the last couple of weeks preparing another of our rental properties for sale and I was handed another reminder of why tenants are not a landlord’s friend. I don’t want this to be taken the wrong way, I am not saying you cannot be friendly and I am not saying you need to create a hostile environment, but you do need to remember a landlord/tenant relationship is a business arrangement.

The Tale of Two Tenants

So, in this property one of the tenants had been with us for almost three years. During this time we had some hiccups, they had fallen behind a few times, managed to catch up, fallen behind again due to the economy and both being laid off, and then eventually caught up again. I even took them to the RTDRS to protect myself, but recommended a Cinderella or Stay order so they could be put on a payment plan rather than a straight eviction which I could easily have obtained. According to any definition, I went above and beyond to help them.

These particular tenants had a couple of dogs as we allowed pets in this property. We had run into some issues during their stay as we had a yard service come through and cut the lawns on a weekly/biweekly basis as there would be evidence of the dogs on the lawn (I will let you figure that out). In these cases, the lawn folks would do the front and leave the back, pretty simple really.

Anyway, now they are gone, they found an incredible opportunity to move to an acreage for less rent and off they went. It was all pretty quick, they gave me about two weeks notice and they actually didn’t even catch up on the money they were behind until after they were out and it involved applying the security deposit to make it balance. For the record, this is not how a landlord should ever use the damage deposit, but this is an example of being too friendly with tenants and should be taken as a lesson.

So once they were gone, I do the tour (no exit walk through as per our systems, once again when you don’t follow your systems, you lose money!) and find the place is looking rough. No, it’s not vandalized; it just wasn’t kept up that well. There is the little stuff, like the dust on the fan blades in the living room that looks like feathers on the edges it’s so thick, the ripped and torn screens on the windows and the patio possibly from the dogs looking out. There are the dust bunnies that are lying in the corners, hanging from the ceiling and on every cold air intake and fan. The sign that it has been months or possibly even years since a good cleaning was done behind furniture and it has only become apparent once furniture was removed from the property.

Then there are slightly more annoying things, like the three kitchen knobs broken off or missing, the myriad of wall anchors and dents in the walls that need patching, the missing and removed closet doors. Finally, there is the badly worn hardwood floor that needs refinishing due to possibly a rocking chair with a nail or staple that dug into the floor damaging it quite severely along with a myriad of scratch marks throughout the floor from animals and moving furniture. Oh and I mustn’t forget the large burn mark on the deck railing (the deck needs to be replaced anyway, but still).

I’ve already spent about fifteen hours patching and painting walls, I’ve brought a contractor in to get the entire front deck replaced, new windows are on order and I am preparing to get the entire floor refinished and as I am doing all of this, I have plenty of time to reflect. Especially as I paint, and it hit me the one day, this is not how a friend would leave your place. At least a friend you want to keep.

Tenants as a generality are just renting space, they get to move on and leave the wealthy landlord (whether he is wealthy or just scraping by, he owns property so renters like to assume he is wealthy) with the place when they move on. I’m not saying all tenants are like this, but I am reminding you of why you need to treat it like a business, and as a counter point let’s look at tenant number two!

The Other Tenant

So now, I am onto the tenants in the lower suite of the same property. These folks moved to Alberta a year ago from Ontario and owned their own home, but weren’t going to purchase here yet until they determined it was where they wanted to be.

During the time they were with us, they never missed a payment or fell behind. They called us a couple of times when there were any property problems and updated us right away so we were able to send out the necessary repair people or take appropriate actions to remedy the problems before they became serious. When their lease was coming up, they gave us two months notice they were moving as their job was located in the deep South and the property was in the NW. The commute was killing them, although they loved the suite, so moving made perfect sense.

When I arrived to do the exit walk through, the place was virtually spotless, not a burnt out light in the place, and the battery was even working in the smoke detector (not so true upstairs as they had removed the battery there!). The only problem was a couple of large anchors in the wall in one room where they had attached part of a desk. In comparison to the upstairs unit that was insignificant!

Comparison Time, What Was The Difference?

So what was the difference, or differences? Well the lower tenants had owned their own home and I have to assume took more responsibility for their place. The upper tenants had become “friends” (not the type I invite over for dinner or call to chat with, but possibly more the type who take advantage of you once or twice before you push them away) and possibly felt I could take care of their mess.

They were done with the space and simply wanted away, so they left. With the damage deposit applied as rent, I had no payments from them at a minimum of a thousand dollars of cleanup, wall repairs and painting. It’s true that I would have painted anyway after having a tenant in for that long, but it’s the tenant’s responsibility to leave the property in the same shape as they originally occupied it.

The Lesson

You really have to focus on your business as a landlord. When you let relationships get in the way of business, it can cost you money. Sure times have been tough the last couple of years for people, but if you let your tenants get to close, times can be tough for you too as you take responsibility for their actions, or lack of actions. There has to be a line between helping people out and ensuring you and yours are taken care of. Sometimes it’s a fine line, other times it can be very definitive, it depends on your emotional makeup to a degree, but remembering this is a business can hopefully help you ensure you are standing on the correct side of the fine line! It comes down to this, tenants are not your friends, they are your business partner in a rental property and you need to treat them as this.

Have any of you tried to help someone who was a tenant? Or do you feel a tenant took excessive advantage of you? Share some of your stories here to help remind others of where that line is. I look forward to hearing from you.

About admin

Bill has been investing in Calgary Real Estate since 2003 and has been writing about various Real Estate topics since shortly after he started. With a significant amount of Real Estate transactions and experiences he is able to pass his knowledge on to other investors and partners, and now you through his Real Estate blog. To automatically receive new posts, be sure to sign up on the top right of this page and I will send you a free ebook on Screening Tenants.
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11 Responses to Why Tenants Are Not Your Friends

  1. Tim says:

    Hi Bill,

    I was fortunate enough to see the place with you and your right. The difference between the upstairs and downstairs was night and day. I can’t imagine what a family would have to do to trash the original hardwood floors like they did. It’s like they had jungle cats roaming about their home.

    Yes, it is a business relationship and the tenant is our customer. We currently have 8 doors and self-manage the tenant process. We have found that treating our tenants in a fair and friendly manner has proven to be of benefit.

    For the responsible tenant, it has resulted in appreciation and added value such as the tenant investing their own time and money into a home upgrade or helping to show the lower suite on a vacancy.

    For the problem tenant, I would like to think that the mess they left could have included addition parting gifts (i.e. a kick into the drywall, missing or damaged appliances). Yes, we had to dip into the damage deposit once or twice to reconcile the account, but for the most part, we came out ahead and everyone got what they deserved (as we all do sooner or later :-).

    I think we learn more from the bad tenant choices we make and it helps us to avoid those mistake in the future.

  2. Bill Biko says:

    Fortunately the place already looks a hundred times better, but it was a reminder that this is a business. And similar to you, it makes us appreciate the great tenants that much more! Thanks for your feedback and looking forward to seeing you again, potentially for a walk through of the renovated property.

  3. Tyrone says:

    I leased to own my house to a couple with children. They had a land rover and a 30 ft long camper. Seemed great.

    They would get behind and catch up several times. I never checked on the inside of the house thinking that they were going to buy it so they are probably taking care of it. Not true at all. They finally decided not to catch up the last time after promising the money is coming, boo hoo hard times.

    After being behind a month and going into the second month I told them they had better pay and they decided after the second week of next month to walk away. They assured me they were going to have it ready for the next tenants and that they were going to pay me for the missed rent.

    I went to the house and it was full of garbage. The downstairs had been used as dog house and stunk so bad i needed a mask. The built in wood box in the downstairs workshop was a kitty litter box (with moldy crap). The detached garage was where they stored their weekly garbage. I guess the back alley was too far for them to put the garbage for the city to take away for free.

    I rented a huge blue bin and filled it, plus took out two truck loads of garbage. They half plastered over the solid pine wood paneled wall with dry wall plaster. half sanded it then partially painted it. The plaster was all over the floor. It was the worst disaster anyone could imagine. It took me about 18 hours to clean up the dry wall plaster by wetting it down and scraping it up. It took me a week before I’d even consider letting someone
    walk into the house.

    Always check on your tenants, make them understand that it will be monthly check ups so they know what to expect before they rent. In BC you can give them a 10 day notice and their first day late of not paying. They have 5 days to pay then another 5 days to get out. Make sure you give it to them. If they have money coming then they had better give it to you. Otherwise its adios amigos. Tenants will screw you over. Tenants will lie. Tenants will pretend to be your friend.

    My new tenant has been much better but not perfect.

  4. Bill Biko says:

    Wow, definitely not fun. One tactic you can use (at least in Alberta), is to write into the lease two yearly inspection dates where you come into the property to check smoke detectors and furnace filters. This provides the tenants with advance notice you are coming into the property and is something you need to point out when signing the lease. It provides two bonuses, one it allows you to check out your property and two it discourages folks who may be thinking about setting up a grow op or meth lab as you will be coming in to often.
    I think the tenants may lie or screw you over may be a bit on the extreme side, but you definitely have to be aware a majority may not have your best interests in mind, but rather specifically their interests only.

  5. F. Wong says:

    Why are you selling this rental property?
    Has is been sold yet?
    If it has not yet been sold could you send me some basic info such as size, price location. Thanks.

  6. Bill Biko says:

    Hi Fay,

    It’s been a great property, I will send you an email with more info.

    Regards,

  7. Meghan says:

    Re: Why Tenants are not your friends.
    Your articel I say ‘truer words have never been said!!
    I have a tenant who has gone to the other extreme of being a good
    Be on gard for tenants who use your son/daughter to get from you what they want.
    1 Familiarity breeds contempt! It is a lousy lifestyle for your son/daughter to be dateing your tenants! I inspect the property, only to find my son crawling out of the patio in the morning, seeing a huge evergreen stripped down about 6 ft to the ground, and a huge pile of ashes on lawn from an open fire. I let it go.
    Throughout the tenacy, late rent, NSF checks, but always felt sorry for the tenant, returned money from the security deposit to help her out (BAD IDEA!), NSF checks, wanted ot improve the palce, gave her paint and prettywell anything she wanted, chated when she dropped of rent , got personal with her…. too close for comfort!

    2 Improvements or revisions in the interior?
    It is one thing to paint, but removing tiles? So I had granted permission on certain patterns. But upon check found small tiles under cupboards, put on unprofessioanly which will have to be stripped. Big job and money! Watch what you allow your tenant to do. Never allow your tenant to make changes that you’ll regret and pay for later!
    3 Excuses for not allowing your entrance into property:
    The shower stall had to be replaced – urgent matter, but every attemp and plan to bring in plumbers was delayed and stalled, cause she had company coming… didn’t suit the tenant. When the tenant pressed for job to get started plumbers were booked, when they were available tenant had excuses. After 1 month of this roller coaster ride, she called at her time to do the project. I called on a contractor, who rippied the stall out, but accidentally broke a water pipe – leaving me with an emergency entry.
    A plumber tended to the matter, but now the job had to be tended to. The tenant’s friend was going to do it, but upon interviewing him learned he did not have the qulifications to tackle this. I turned to my back-up and professional contractors. The tenant was very angry (no doubt she and her friend d had in mind a $ deal). I told her under no uncertain words – this is urgent – I will walk in Mon a.m. the project will be under way, irregardless of her excuses! Mon afternoon plumbers launched in, and had started when the tenant got defient and said she wanted no workers in the house. I said the job will go on. She started to get violently angry threatening to call police, city etc, which I ignored. Then the most horrid thing – 4 workers saw her lose it. SHE CAME DOWNSTAIRS, SHOOK HER FINGER IN MY FACE AND TOLD ME TO LEAVE (I AM HER LANDLADY!!) I IGNORED HER, AND SHE SAID “I’LL F__ EN WELL THROW YOU OUTMYSELF!” THE GUYS LOOK ON WITH HORROR, AND WERE READY TO DO A ‘LOCKDOWN WHILE SOMEONE CALLED THE PoLICE -HANDCUFF AND REMOVE HER. THOUGH SHE DIDN’T TOUCH ME, I DECIDED TO LEAVE.

    4 EVICTION
    the biggest problem i’m concerned about is making it stick! I am thankful for this website – I have learned a lot about the quick procedure in removel. I will in advanced go to RTDRS to apply and get a head start, all I care about is to get this manic out of sight!

    5 Safe? yes I dropped all projects until tenants are removed to ensure the safty of my crew.

    6 Beware of excuses:
    What is the renant hiding – when in doublt find out. I learned later there is the boyfriend, not on the lease. Suspicsion has it he has taken up residence with her, and also instigated this rival.
    GOOD TENANTS ARE HARD TO FIND IN CALGARY!
    .-= Meghan´s last blog ..By: Bill Biko =-.

  8. Bill Biko says:

    Hi Meghan,

    It sounds you have really been taken through the ringer. Hopefully some valuable lessons about befriending tenants were learned. It can be a fine line of being friendly and being actual friends with tenants. One of the golden rules for landlords if they are dealing with actual friends is to refer them to other landlords rather than rent to them yourself.
    As for good tenants, they are out there, it just points out how important it is for landlords to do some quality screening. I have some tips for that on the site here, if you need more information though feel free to contact me. thanks for sharing your story!

  9. I represent the landlord for commercial office space for lease & I have come across some similar situations. Once it is time for a tenant to leave, you never know what to expect before doing the final walk-thru after the tenant is gone. They all want their security deposit back, even though they trashed the carpet, walls, doors & ceiling tile. One incedent, where the tenant was actual freind with the landlord, he ended up ditching out on payment & left the landlord (his ex-friend) hi & dry. Essentially, the tenant was going through some setbacks, so he said, and was paying everyone else, but not paying the landlord (his so-called friend). Its true, you must keep this as business like as possible & if you want to rent to a friend, tell them that you have to answer to someone else, who is in charge, to make things less uncomfortable if things head south. Nice article.

  10. Susan says:

    Hi

    We have renters in our property now that are leaving at the end of March. We have had some struggles with them throughout the year. First off we made the mistake of signing the lease before getting the damage deposit. Their first payment bounced, but we persevered and had the next payment (written on the check ) for the damage deposit. They managed to catch up and then called in a plumber to fix the dishwasher without telling us. They informed us they would be taking the money off the rent. I called the plumber( name on invoice, no receipt). He told me the check had bounced and that they had told him that it wasn’t fixed and they wouldn’t pay him. I paid him a couple hundred dollars. We found the warranty and got in line for a repair man, ( remember that flood. Repairmen were scarce) finally we find out the renter had blocked the drain with a piece of plastic just sitting in the bottom go the dishwasher.

    We had allowed one dog, but on three separate occasions, we saw three dogs in the house and the back yard in spite of continual warnings. The renter decided he would like to store his quad in the back yard and took down the back fence so he could drive over the back yard to the patio. No reaction to our protests, so we took over an eviction notice that would take effect if they didn’t fix the fence immediately. He put fence back more or less. It still needs two boards painted. Now the yard us covered in doggy doo and snow. I would like to see the condition of the actual lawn, and am pursuing another difficult conversation with the tenant to ensure that the yard is cleaned before the walk through. These tenants are aggressive and argumentative and I am actually feeling nervous of the walk through. Is there any company that will do the final house inspection with me for the final walk through?

  11. Bill Biko says:

    Hi Susan,

    Sorry just saw this. Hopefully everything worked out.

    Bill

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