Bad tenant behavior comes in many abstract forms, each bringing its own setbacks. While it’s instinctive (and usually just) to point fingers at the tenant, some behavioral issues can easily be solved with proper managing.
When you get right down to the mechanics, jumping to eviction as the instant solution still means less cash and more headaches (unless it’s absolutely necessary). Since all of your tenants aren’t wired exactly the same way, you need to be prepared with different ways to approach each situation—whether it’s a tenant’s first or fifth offense.
So can a bad tenant really go good? Find out how you can guide bad tenants back to the light with these corrective behavioral tips.
Define Your Grey Area
Things always tend to happen at the most inconvenient times, so keep that in mind when laying out your ground rules for what merits eviction at your facility. There are certain types of tenant behaviors that do require a call to action but aren’t quite up to par to be considered for eviction. These are actions that certainly need attention but shouldn’t be thought of as uncorrectable. For now, we’ll call this your “grey area.”
Carol Krendl, owner and President of SkilCheck Services, Inc., previously worked as the corporate trainer for a large developer with 69 self storage properties and has trained over 200 self storage managers.
Below is Krendl’s list of fixable behaviors that a well-trained self storage manager should be able to handle:
- Constantly paying late
- A non-sufficient funds (NSF) check
- Bad attitude or rudeness
- Always hanging out in the office
- Going into lien status often
- Arguing with other customers
Krendl explains that, at times, the manager may be part of the problem if they’re doing something like letting late payments build up since it only leaves a bigger mess for the next manager to take care of.
“Over the years, I have had many tenants that paid late fees every single month,” Krendl says. “Most of those customers were people who received paychecks or government money on a specific day after our grace period. My managers typically would fix that issue by changing their due date so it works for the customer.”
Lay Out the Mandatory Expectations Early
Although having a “grey area” is important, there are clear boundaries that must be set in order to maintain some control over the chaos of events.
“I think this storage job at times is like parenting,” Krendl says. “You need to find a balance between being too strict and running customers off, and not too lenient that the customer takes advantage of your kindness.”
A great time to make tenants aware of your facility’s expectations is at the signing of the lease. Whether you incorporate the guidelines into the lease or make them a separate precursor, have a hard copy ready for the tenant to take with them and keep.
“One of the best suggestions I have is to start the rental out by giving a ‘Be A Good Neighbor’ list, or you might call it ‘Rules and Regulations’ for when a customer is renting,” Krendl says. “Highlight a few items that are important (i.e., tailgating, no hazardous waste, late fee policy, etc.) and then briefly go over some of the items.”
When Enough is Enough
While the majority of bad tenant behavior can be counteracted, there are certain types of behavior that undoubtedly warrant eviction.
Krendl says storing toxic chemicals onsite, tampering with another customer’s lock, sleeping in the space, and any illegal behavior (i.e., prostitution, growing marijuana, making meth, storing contraband, etc.) are a few examples of intolerable actions that make a tenant eligible for eviction.
“In most states, you can use the eviction process to remove a customer from your storage property,” Krendl says. “However, it can be costly, lengthy, and you would need to hire an attorney. So my solution to the problem tenant is to increase their rent. In the rent increase letter, I always state the provision(s) in our rental agreement that they have violated, and I let them know specifically when they will be able to access their goods.”
Krendl describes that she would do this by informing the customer that their space will be locked and only accessed during office hours with the accompaniment of an employee.
“Normally, it’s so much hassle they will move out,” Krendl says. “Make sure you have a really good rental agreement that has provisions that will allow you to change the access hours with proper notice.”
As stated previously, it’s important to have a rental agreement that does a lot of the work for you, as the precautions you include can prove themselves to be your best resource time and time again.
“Remember, most of your customers are going to do the right thing,” adds Krendl. “But you need to be prepared for the few that do illegal and disruptive things.”
