Being a property manager of a rental unit isn’t always easy, and landlord-tenant disputes make it even harder. This is especially true when disputes have a financial aspect to them. That is quite common, as renters are up to four times more likely to be in the lower income bracket than homeowners.
But many common issues are also due to simple misunderstandings from the outset. Don’t despair. With some forethought, planning, and the right strategies, you can handle most landlord-tenant disputes quickly and professionally.
In this guide, we cover the 10 most common problems property managers face with their residents. You’ll discover the potential reasons behind these common issues and how to resolve and prevent them in the future.
10 Common Landlord-Tenant Disputes and Solutions
These are the 10 most common landlord-tenant issues. Residents have the right to seek help with landlord disputes. But if you learn how to effectively deal with issues as they arise, you will prevent them from recurring in the future.
1. Maintenance and Repairs Disputes
One of the most common resident issues with property managers stems from uncertainty about who is responsible for maintenance and necessary repairs. If this is not covered in the lease, it will usually cause problems down the line.
The Issue
The old argument over who is responsible for maintenance is a constant source of friction between property managers and residents.
Typically, property managers are responsible for major maintenance and repairs. You’ll spend a fair amount of time addressing maintenance issues. Residents are responsible for minor maintenance, avoiding damages, and keeping the property clean.
The Solution
Cover maintenance responsibilities in the lease, so residents know what is expected of them. Don’t rely on broad sweeping statements like, “Residents shall be responsible for minor maintenance issues”. Explain it in full before they sign the lease.
2. Rent Payment Disputes
Late rent payments can easily lead to landlord-tenant disputes, and it’s easy to understand why. When residents don’t pay on time or they pay less than the rental amount due, it affects the property owner’s livelihood. But the reasons behind such late rent payments are not always clear-cut.
The Issue
Most residents do not deliberately withhold rent or short pay without good reason. It’s usually due to financial difficulty after employment termination or other economic hardships. Unfortunately, renters are also reluctant to discuss such problems for fear of eviction or being taken to small claims court.
The Solution
Don’t risk losing a good resident going through a rough patch over unpaid rent owed.
If you sense their unpaid rent is a sign of temporary financial difficulty, discuss a grace period for late payments and a plan going forward. It may include a slight reduction in rent temporarily, which they can pay back when they are financially stable again.
3. Security Deposit Disputes
One of the most common landlord-tenant disputes occurs when the resident moves out. We’re talking about the regular security deposit dispute.
The Issue
The main reason for forfeiting a security deposit is property damage. Often, the landlord-tenant issue here is not wilful destruction but a misunderstanding of the concept of property maintenance.
The Solution
Distinguish between true damages and general wear and tear. That is much easier to do if you conduct a pre-move-in inspection and are keeping an eye on maintenance during the resident’s stay. Always state the consequences of such damage (deductions from security deposits) in the lease to avoid misunderstandings later.
4. Noise Complaints
Noise complaints are part and parcel of life as a property manager. Usually, this is resolved simply without any problems. But there can be other factors involved, and this calls for discernment.
The Issue
This is a tricky one, as a noise disturbance complaint can be due to many factors. Firstly, the neighbors making the complaint may be unreasonable in their expectations. Secondly, the noise may be temporary, such as with home improvements.
However, if the ‘noise’ reported is loud shouting or screaming, and it happens regularly, there may be a more serious issue behind it all.
The Solution
When complaints are made about your residents making too much noise, assess the situation before you make a judgment.
Explain to the residents the importance of abiding by the rules regarding noise before they move in. If the noise disturbances are caused by domestic violence or similar problems, notify the relevant authorities.
5. Lease Agreement Violations
Lease violations are at the heart of many landlord-tenant disputes. These are often a result of the resident not understanding the terminology in the lease.
The Issue
Vague, overly complex, or confusing lease terminology is often the issue in lease violations. More often than not, the residents simply did not understand what the lease required of them. This is most common when the resident is not a native speaker of the language used in the lease.
The Solution
Many resident disputes can be traced to misunderstandings of the lease agreement. The simplest solution is to make lease agreement forms easy to understand. Use plain English if the resident is not a native speaker, or have it translated into their language.
6. Rental Property Damages
Rental property damage is the central theme of many landlord-tenant disputes. It means you’ll have to do repairs before a new resident can move in. It also affects a resident’s right to receive their security deposit back from the property management company when they move out from the rental property.
The Issue
Damages often occur when residents don’t do general maintenance and cleaning or have pets or small children. Sometimes, this falls under general wear-and-tear and a new coat of paint will solve the problem. However, more severe damages can occur, like damaged walls, doors, or flooring.
The Solution
If you did a pre-moving inspection, consult that inspection report. If the damages to the property are minor, you may choose to repair them yourself.
Allow the resident to arrange repairs to make the apartment habitable before new tenants move in. Alternatively, deduct the costs from their security deposit and pay any remaining balance. That is, after all, what security deposits are for.
7. Illegal Entry or Privacy Violations
Sometimes, the property owner/manager is the problem, especially if entering the property while the resident is not home.
The Issue
When a resident discovers you in their home unexpectedly or learns you were there while they were out, you can usually expect an altercation. Residents have the right to privacy. However, there are situations when the property owner/manager’s entrance to a property is necessary, for example, in an emergency.
The Solution
When you rent the property out, discuss any inspections you’ll want to do in time, and how they will be carried out. Also raise the issue of your entrance to their property in case of fire, flood, or other emergencies.
For the duration of the tenant’s lease, the property is their home. Always request permission to enter their home when possible, and remind residents about regular inspections. You must have a valid reason for that entry, as per your lease agreement and any relevant state laws.
For non-emergency situations, like filter/furnace checks or other routine inspection, you can avoid these sorts of disputes altogether with resident-led inspection tools, like RentCheck.
8. Utilities and Services Disputes
The rising costs of utility bills are an unfortunate reality that we all have to deal with. However, when you include utility payments with the rent, at some point you’ll have a resident who disputes the bill.
The Issue
The most common issue with utility disputes is that the resident feels they have been overcharged for the services they are receiving. Often, this is due to appliances that are faulty or simply not energy efficient.
The Solution
To eliminate this risk, ensure that all appliances and HVAC installations are in good order pre-moving in. Don’t ignore maintenance requests, as regular maintenance can prevent the faults that lead to excess energy consumption.
9. Lease Renewal Disputes
According to government statistics, 12-month leases are the most common, followed by two-year leases. However, 12-month leases are the most common for new residents. Roughly half of long-term tenants (five or more years) opt for a month-to-month rental agreement with time.
When you have a resident who never causes problems, you’ll be happy to renew their lease. This should be a simple matter, but unfortunately, it’s not always the case.
The Issue
When you raise the rent at the same time the resident renews the lease, you can expect some resistance. This is more common when residents are not expecting such an increase.
The Solution
Rent increases are much more common when a new resident moves in, but you are entitled to raise the rent upon renewal of a lease. Be aware, though, that you must give an appropriate advance notice period.
This doesn’t include mid-lease rental increases unless a provision has been made for it in the lease agreement. Also, you may be restricted in rent-controlled areas, so always check local and state laws on this issue.
10. Parking Disputes
Although less common than some of the others on this list, parking can also lead to a landlord-tenant dispute. In an apartment building, this is usually dealt with by the building’s committee. But in the case of a freestanding home, it falls to the property manager to resolve such issues.
The Issue
Limited parking space will become an issue, especially when residents have on-street parking only and more than one vehicle for their household. This can escalate to problems with the neighbors, who also need the parking space.
The Solution
If the property doesn’t have a dedicated parking area, ensure that the resident knows this upfront. Stress the importance of allowing neighbors space for parking. For apartment buildings that have attached parking areas, allocate specific parking bays to the units, and demarcate them.
Streamline Your Property Inspections With RentCheck
As a property manager, you’ll deal with several residents’ disputes over time. Often, these can be avoided with thorough tenant screening, clearer lease language, and open channels of communication in times of economic difficulty.
Landlord-tenant conflicts are not entirely avoidable. However, you’ll eliminate many of these issues with RentCheck. Our automated forms make maintenance checks, as well as move-in and move-out inspections, easier for both the resident and the property manager.
Want to save time resolving disputes? Simplify move-in/move-out and pre-acquisition inspections, streamline lease renewals, and reduce security deposit disputes with RentCheck.
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