9 Essential Risks Every Landlord Should Know About Tenants

Irina Zhigina, an experienced business course instructor, shares her personal journey with renting out apartments. She explains how landlords can foster mutually satisfying relationships with tenants, anticipate potential problems, and protect their properties from dishonest renters.

Irina Zhigina

Project Manager and Business Course Author.

“When I moved out of my previous apartment, the landlord was in tears!”

“Don’t worry, that won’t happen with me. I always pay rent upfront.”

Did you know there’s a bedbug outbreak in some cities? I didn’t either until it affected me. My sister had to renovate her entire apartment after an infestation, and I had to call pest control six times for my rental. Despite all efforts, the problem lingered because some tenants brought the bugs in—and they could bring them to the next place, too.

So why is renting so popular despite these challenges? How can landlords and tenants build positive relationships? What hidden risks should landlords be aware of? Let’s explore.

Why Is Renting So Popular?

Renting offers a quick way to improve living conditions and quality of life, such as:

• Better housing options
• Proximity to work and reduced commuting costs

Renting also allows flexibility in budgeting—tenants can choose more affordable housing during tough times and upgrade when income increases.

According to housing studies, out of millions of families needing better housing, about 35% are open to renting. Currently, around 15 million families rent under market conditions, most dealing directly with individual landlords.

Common Types of Tenants

1. Students
2. Families
3. Singles
4. Friends sharing
5. Mixed groups
6. Workers
7. Couples
8. Perpetual apartment seekers

It’s wise to avoid tenants who are constantly searching and never satisfied, as they can waste your time and energy.

Risks Tenants Pose and How to Protect Your Property

Landlords sometimes face fraud or irresponsible tenants. Here are common issues and tips to mitigate them.

Water Damage

Besides security deposits, investing in property insurance covering damages and third-party liabilities is crucial. This helps cover costs if tenants cause flooding affecting neighbors.

For example, my tenants once flooded both my apartment and the neighbors’. The insurance compensated the affected neighbor, and tenants reimbursed me partially. Later tenants repeated damage, but through friendly neighborly relations, complaints were avoided.

Pest Infestations

Discovering pests like cockroaches or bedbugs introduced by tenants is distressing. I now inspect apartments with pest control experts before renting out and consider contract clauses about undisclosed occupants.

Property Damage

Security deposits help but may not cover extensive damage. Monthly inspections and detailed inventory checklists signed during tenant move-in are effective safeguards.

For instance, tenants once repaired a broken old refrigerator themselves without informing me. When moving out, they demanded reimbursement for repairs, causing unnecessary disputes. Explicit contract terms about appliance maintenance can prevent such issues.

Early Move-Outs Without Payment

Tenants sometimes leave abruptly without settling rent. Always require advance payment to reduce this risk. Tenants may request extensions and then disappear, making recovery difficult even with their personal information.

Noisy Tenants

Loud parties and disturbances can lead to police involvement. Including a clause in the lease referencing local noise ordinances can empower landlords to terminate leases if tenants disrupt neighbors during designated quiet hours (usually 11 PM to 7 AM).

Utility Payment Issues

Record meter readings at move-in and include them in the lease. While paying utilities can be assigned to tenants, always request proof of payment monthly. Disable unnecessary services like landline telephones to avoid billing surprises.

Unauthorized Subletting

Subleasing without permission is common, especially when landlords cannot frequently check the property. A clear lease clause prohibiting subletting is essential to prevent this practice.

Friends Moving In

Lending property to friends often leads to late payments, property damage, and noise complaints. Oral agreements are risky; always formalize terms in writing regardless of personal relationships.

Criminal Activities

Although rare, criminal incidents can occur. For example, when renting to tenants unfamiliar to me, I was involved in police investigations. Having a solid lease and security deposit helped minimize consequences.

A well-drafted lease and security deposit are the best safeguards landlords have. Trust your instincts during tenant screening; if something feels off, seek other renters.

Renting out property carries challenges, but thorough preparation and awareness can greatly reduce risks.

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