With the cost of housing rising and new housing starts at an all time low, I understand the romance with becoming and remaining a landlord in the central valley. Rents are going up at a faster rate than anywhere else in the country. That coupled with a mass exodus of people from the bay area (that are used to paying high prices) to Stockton, Sacramento and Modesto and there appears to be a recipe (at least on paper) for great investment and income producing properties, right?
The problem is that that on paper it may be true but in reality I am not sure that with all of the new rules and regulations in California that are designed to hamstring landlords, that investment opportunity actually pencils out anymore. From where I sit I see a huge shift in the rental culture over the past 10 years. I am not sure if it was born out of the great recession, a lack of new housing, a breakdown in social morays, an entitlement mentality or something else, but as much as we’d like to believe that having consistently bad tenants is a new phenomenon, I am afraid that it is not.
The problem today, is that the frequency is just so much more prevalent. Like I said, I am not sure what it is. Maybe it’s an extension of the class warfare that has been being waged all over the country and now landlords we are viewed as a vastly more wealthy group than the renter population that appears to be acting more and more entitled and irresponsible. Maybe it can be attributed to a further breakdown of the family and personal responsibility for the renters of today. I do know this, very few bad tenants feel any shame or fear of retribution because right up and until they are evicted they are in possession of your property and can do pretty much whatever they want with without fear of any consequences.
I have a feeling that as landlords we have become targets and at the same time silently complicit with governments that at every level they seem to tread on the property right of owners and have turned a deaf ear to the plight of homeowners and property rights throughout the state. Is it because they know that we can’t do anything about it? I believe so.
In the past, there used to be a sort of symbiotic relationship and partnership that allowed landlords to at least deal with problem tenants in both a legal and civil forum to at least provide some redress for problems and property damage that they caused. In today’s California, good luck, because there is no more serious criminal activity or behavior that actually lands anyone in jail for much of anything.
So, Landlords if you feel like you have a target on your back with your property rights under assault, with issues like eviction, rent control and other mandates by government creeping in on your rights of ownership, you are not alone. Because there has been an all out assault on your property rights in California for the past 10 years and your once sacred rights of ownership have been virtually nullified. For the privilege of providing housing to families you get to pay property taxes, maintain your house and be liable for anything and everything that goes wrong while others are in it regardless of their right to be there. You pay a premium you are expected to be at every tenants beck and call 24×7.
4 ways to deal with a Bad tenant in Stockton.
If you own a rental property in the Central Valley the scenario is not getting any better. One after one, landlords are tired of the governments red tape and bad policy when it comes time to getting bad tenants out. Bad tenants
- trashed the property,
- maybe they never pay rent on time,
- there are too many people living there,
- call you for every little thing.
Tip # 1 Try to reason with your tenants
Regardless of how tired you are, if you are rational you need to try to reason with your tenants and explain that you provide a service so they need to pay and treat it properly. Perhaps your tenants don’t realize they are inconveniencing you or maybe they’re not paying because they need a different payment schedule (such as weekly instead of monthly).
Tip # 2 Evict your tenants
Evicting tenants can be tricky and even legally complicated but it’s an option for you. Laws often favor tenants over landlords so you might have an uphill battle but in the long run it could be worth the effort to get them out of your property and instead get someone into your property who is a better tenant.
Tip # 3 Explore other legal options
Who’s kidding who? That rabbit hole just got a whole lot deeper. But, in some rare situations, where your tenants have money, you may be able to explore other legal options, from suing your tenants to getting their wages garnished. Of course, you will need to work with an attorney to get a judgement and then again for the garnishment and I have never found it worth the expense. I prefer to just to get bad tenant out of your rental property as soon as possible.
Tip # 4 Sell your property
This is probably the best option of all. Between one time capital gains exemptions and 1031 exchanges or just p[lain creative financing with the buyer you can get rid of your headaches without losing your mail box money or having to pay a high rate of taxes for capital gains.
If your tenants are a real hassle and causing you a lot of stress and expense, then you can always sell your property. In fact, a lot of rental property owners that sell to us do so because of the frustrations they face dealing with tenants. Depending on who you sell to, you may not even need to evict your tenant first (for example, in many cases, we just buy and evict for you). For rental property owners with family living in the rental, this is an ideal solution.