Preventing an Eviction by Screening Potential Tenants

As a landlord, the best way to deal with an eviction is to prevent it. What you do before your choose the tenant and before the tenant moves in will help ensure a smooth landlord/tenant relationship.

When I bought my four unit building in March, the previous owner left me with a tenant that caused me problems throughout the summer and who, ultimately, I had to evict. Reflecting on what had happened, I realize I could have done many things differently to prevent the situation that occurred. I also would have saved myself money, time, and many annoying days. What can you do to ensure good tenants when buying a building?

Screen the tenants
My wife and I thoroughly screen all of our potential tenants. However, we didn't do any screening when we first bought the building. Had I done that, I would have found out that the tenant we had to evict had previously been evicted. I then could have told the seller that I wanted him to get rid of that tenant as a precondition before closing. Have each tenant fill out an information sheet and make sure you meet each tenant.

Make sure there are security deposits for all the tenants
I really kick myself for not doing this. When we bought the building, one unit was vacant, which my wife and I were moving into, and two of the other three units had security deposits. The unit which had the tenant that we evicted did not have a security deposit. This should have raised a big red-flag. If a tenant does not have a security deposit, ask the seller why and demand that the seller produce one before closing. I made a big mistake on this one.

Review the lease with each tenant
After you buy the building, in order to ensure no miscommunication, sit down with each tenant and thoroughly review the lease. This will help clear up any ambiguities, show the tenant that there is a new boss, and may provide an opportunity to make some extra money. If, for example, there is nothing in the lease about parking, yet the tenants have been parking in a secured spot, you should inform the tenant that you will begin charging for parking. They can either start paying for their spot, or park on the street.

You have the most leverage before the purchase of a building. Make sure you're comfortable with the tenants and, if not, make the seller do the dirty work. Don't make the same mistakes I did.