5 Ways to Deal With Bad Tenants in Calgary Alberta

5 Ways to Deal With Bad Tenants in Calgary Alberta

Being a landlord in Calgary, Alberta involves inevitable challenges, and number-one among them is dealing with problematic tenants. While eviction remains an option for truly difficult tenants, it is a time-consuming and costly process. Therefore, it is always better to explore alternative ways to deal with tenant issues effectively. Below, you’ll find 5 ways to deal with bad tenants in Calgary, Alberta so you can avoid dealing with an eviction.

5 ways to deal with bad tenants in Calgary Alberta

1. Rent Non-Payment

In Calgary, Alberta, a problem for any landlord, is having those tenants who just won’t pay their rent. This obviously will affect your cash flow and the ability for you to cover your carrying costs. It’s essential to recognize that tenants may not pay rent for various reasons, often without malicious intent. Industry experts point out that tenants may withhold rent due to cash flow shortages, temporary unemployment, or disputes related to repairs and maintenance. Effective communication becomes crucial when addressing this issue, emphasizing the importance of understanding the tenant’s situation and negotiating where possible.

As a landlord, you have several options to address non-payment concerns. The primary and most effective approach involves implementing a payment plan to ease the financial burden on tenants. For instance, during times of financial struggle, consider:

• Allowing a policy that allows accepting a partial payment from a resident once per year.
• Prorating late fees and delinquent rent over the remaining duration of the tenant’s lease.
• Allowing weekly partial payments rather than larger monthly sums.

Another alternative is to explore adjustments to the tenants’ living arrangements. If a tenant can no longer afford the rent, landlords can consider arranging for roommates or relocating them to smaller, more affordable units.

2. Tenants Making Problems with Other Tenants

There are times when individuals become problem tenants due to their excessive noise or disruptive behavior. Despite proper screening, such tenants in Calgary Alberta can occasionally cause massive challenges for both you and other residents.

Dealing with this type of problem tenants can begin by encouraging and allowing tenants to resolve conflicts amongst themselves. Consider incorporating a clause in the lease that explicitly instructs all tenants to make reasonable attempts at settling disputes without your direct involvement. Emphasize that if intervention becomes necessary, the resolution may not satisfy everyone, potentially leading to someone leaving the property.

However, should the need arise for your intervention, consider being a mediator. Clearly articulate the potential consequences to all parties involved, which hopefully allows for a constructive atmosphere to resolve the conflict. It is crucial to make sure that your lease or rental agreement specifies property regulations and rules, in addition to clauses regarding these disagreements.

3. Late Payments from Tenants

Some tenants consistently pay their rent late. They pay, but never all the rent on time. When dealing with these bad tenants in Calgary Alberta, it’s essential to consider that the reasons behind late rent payments may be innocuous, such as forgetfulness.

Having a conversation with these tenants to understand the circumstances behind the consistently late payments can be beneficial. You might consider options like discussing their situation and, if appropriate, waiving late fees and penalties upon their commitment to pay any outstanding rent promptly. Another strategy can be to implement payment reminders. This is additional time and effort but can sometimes be the difference maker or solution to the issue.

4. Refuse To Renew The Lease

If the strategies mentioned above for managing bad tenants in Calgary, Alberta prove ineffective, eviction may still not be the only recourse. An alternative you can use is choosing not to renew the lease. It’s important to note that this isn’t typically an immediate resolution, and you must familiarize yourself with provincial laws governing landlords and tenants before taking this step. Typically, you can send your tenant a letter notifying them that their lease will not be renewed upon its expiration. Be mindful of the specific notice period required, which could be 30, 60, or 90 days, depending on the applicable state and local regulations.

5. Cash Buy Out / Cash Settlement

Before going to eviction, another option when dealing with bad tenants in Calgary, Alberta is the offer of a “cash settlement”. While it might be costly, it effectively removes the troublesome tenant and provides a potential quick resolution. A “cash settlement” agreement is a legally binding contract wherein you offer a lump sum of money to the tenant if they cancel their lease and vacate the property.

You might be questioning the rationale behind paying a troublesome tenant to leave. The key factor is the finances and time. Evicting a tenant can be a costly and time-consuming process, often exceeding many thousands of dollars, and could take months to complete. Opting for a “cash settlement” wherein you pay a portion of the potential eviction cost, allows for a quicker solution. By investing, for example, $1,000 to expedite the departure of a problematic tenant within a week, you can save a considerable amount of money and time AND allow you to find a more qualified tenant.

Let’s Get Real

Whatever approach you decide to take in addressing challenges with bad tenants, it’s crucial to be schooled in the legalities. Your most prudent move is to connect with experienced investors in Calgary, Alberta, who can guide you in understanding the nuances of what you can and cannot do as a landlord.

If you’re seeking support in handling issues with difficult tenants, we invite you to reach out to us here at Calgary Cash Buyers. Our expertise is at your service.

Looking to Sell? Call Us TODAY 403-283-6777.

If you are tired of the hassle and just want this property sold, check out contact us today.