5 Landlord Horror Stories (and How to Avoid Them)

Being a landlord is not for the fainthearted. To become successful in the business you have to learn from your mistakes. Landlords are inevitably going to run into some issues from time to time. Whether that is maintenance issues, tenant related, acquiring an undesirable property or all three, you have to learn to roll with the punches and learn from each mistake to make your business successful.

If you’ve been a landlord for several years, you’ve more than likely had your fair share of experiences whether it’s dealing with tenants, a maintenance issue gone out of control, or making bad investment decision. Here to tell you some of their horror stories and how they survived them are some of the best landlords in the business.

Unwanted Guests

Michael Cheng from Archers Homes

What is the worst thing that has happened to one of your properties?

During a two week period when one of my rental homes was vacant between tenants, vandals broke in and flooded the house. They plugged all the drains and ran the water on all the bathrooms on both floors. When my neighbors saw the water running out the garage, they called the police. Then the police called me a few hours later, about 2am, to let me know.  Finally, they got in an emergency water mitigation crew to actually turn off the still running water and start drying out the house overnight.

How did you react when it first happened?

I confirmed what happened with the police and made an immediate call to my insurance company to file a claim. 

What did you do to fix it?

I got an adjuster to give me an estimate and the insurance company sent me the settlement check.  After paying off the exorbitant charges of the emergency water mitigation service, I sent in my regular contractor crew to do the work. I ended up spending a night to paint the house to get it ready for rental. The home looked as good as brand new. It was leased about a week later.  

Key Takeaway

One of the risks of owning rental property is tenant turnover and extended vacancy periods. The longer a property is vacant, the more costs add up and in Michael’s case, he had to deal with vandalism costs, as well. In order to minimize rental property vacancies, keep in mind market conditions in the area you are considering.

Bug Filled Couches and Broken Windows

James Wise from The Holton-Wise Property Group

What is the worst thing that has happened to one of your properties?

Where to start? There are so many stories to choose from. We had a 3 story apartment building in Cleveland, Ohio. One night during a rainstorm the 2nd story tenant is calling the line frantically. Over and over again. Because a couch came crashing in through her dining room window. (Yes the 2nd story window) Apparently the tenant on the 3rd floor found out they had bed bugs and they decided the smartest way to fix it was to go ahead and throw the couch out the window. As it fell down it turned and crashed into this woman's window below.

How did you react when it first happened?

We have over 800 rentals in our portfolio. In the beginning when crazy things would happen we would get upset and wonder how these things could happen. At this point we just kind of shrug it off or laugh. We are pretty numb to it. We have seen everything from serious violent crimes to tenants stealing the hot water tank when they move out, tenants breaking into the house after they have been evicted, tenants putting concrete in the toilets, tenants getting evicted from one unit in a building and just walking into their friends unit in another part of the building, tenants fighting, tenants stealing power from one another, one tenant threatened to burn my house down etc....

What did you do to fix it?

You can never totally eliminate or fix all problems. It's the rental business it comes with the territory. If it was super easy we'd all do it and we'd all be rich. You have to roll with the punches and do your best to mitigate your risk. You mitigate your risk by doing things like screening tenants and using a professional management company.

Key Takeaway

With more than 800 rentals in your portfolio, issues are imminent. In James’ case, he was forced to deal with a lot of bad tenants over the years, sometimes having to resort to eviction.  Evictions can be costly. Once you add legal fees, court costs, damage etc. costs can range anywhere from $3,500 - $10,000. Aside from the cost, the process can be time-consuming. Time is money and the more time you spend evicting tenants, the less time you spend on more efficient endeavors. Like James said, one way to avoid tenant eviction is by screening tenants or hiring a property management company.

It Started Out as Just a Leak...

Domenick Tiziano from Accidental Rental

What is the worst thing that has happened to one of your properties?

The biggest problem I've had as a landlord was when I let a small hot water heater problem become a major issue. I own a tiny condo and in order to accommodate a washer/dryer, it can only have a tankless water heater. Tankless water heaters are notoriously complex systems and require specialized service. I had one unit that was experiencing issues (e.g., shutting off while the tenant was in the shower). I had it quickly serviced and thought that was the end of the problem. A few weeks later I got a call from the owner below saying there was water leaking into their condo from my unit.

How did you react when it first happened?

Of course I panicked. I contacted the tenant who was out of town (of course) so I grabbed the keys and rushed out to the condo to shut off the water not knowing what to expect. When I got there, I found a small but steady leak from the water heater but no standing water in my unit. The unit below had a steady leak of dirty water coming through the ceiling. 

What did you do to fix it?

I immediately shut off the water to my property and called a few professionals to see who could fix it quickly. Unfortunately, it was a holiday weekend so it was a couple of days before I could get someone who knew how to service a tankless water heater out to my rental. I ended up having to expedite a replacement and deal with both the upset owners below as well as an upset tenant who didn't have hot water for days. It ended up costing me much more than had I just replaced it when the issues first started. Because I have always been very responsive to all issues, my tenant was understanding but I did have to give a sizable rent concession to make up for their loss of use. 

Lesson Learned: Always properly maintain household systems and replace anything you suspect is past its useful life!  Also, be responsive to your tenant. Offer a concession if they've been put out. It will help create a lot of goodwill and a loyal tenant.  In fact, my tenant is still living there despite this issue.

Key Takeaway

Maintenance issues are an inevitable risk of owning rental property. If you decide to ignore small issues, they will only grow into bigger problems down the road.  A good industry standard is to purchase properties that are less than 15 years old and perform regular inspections to stay current on the condition of your property. Insurance may cover some costs, but not everything, so set aside a portion of each rent payment to help cover any unexpected maintenance issues you may come across in the future.

Abandoned Pets

Andreas B Johansson is the CEO and founder of Berkovitz Development Group

What is the worst thing that has happened to one of your properties?

I think the worst thing that I've ever seen was at one of our investment properties in Detroit. We had our suspicions that the tenant had decided to abandon the property and we sent one of our staff members over to check it out. Not only had the property been left in a horrible state–carpets completely destroyed, holes in the walls, the furnaces missing etc - stuff that happens from time to time, but they had also left their two dogs behind in the kitchen. We were very fortunate in a way, as they had probably just left within the last day or two, so while the dogs were hungry and thirsty, they were still alive and in relatively good health.

How did you react when it first happened?

Fortunately for us, both myself and my wife as well as our local staff, are all animal supporters and activists so we were able to immediately get the dogs fed and checked out by a local vet before placing them with local foster care. For me, calling animal control or a local shelter (even if it calls itself a no kill shelter) is really the last option, after all other avenues have been exhausted.

What did you do to fix it?

We made sure the dogs were placed in foster care and then adopted out, and we further stepped up the screening efforts by the property manager. Some things can't be avoided and with hundreds of properties we were bound to get one or two issues, but I always mention the need to screen tenants as the number one key to success in getting your rental income long term.

Key Takeaway

Once you start owning several properties, it can be easy to overlook certain things. However, this is when you should be paying even more attention to details like tenant screening. Even if you’re desperate to fill a vacancy, screening is a step that should never be skipped.

One way to make this process a little easier is to have your screening service online. It makes the process manageable for both tenants and landlords with straightforward payment. It also includes tenant credit checks and an eviction report as well as a criminal background check so you can try to avoid tenants that may leave abruptly and pose a risk to the safety of your property.

Notice Gone Wrong

Justin Taber from Taber Realty Group

What is the worst thing that has happened to one of your properties?

If you’re a landlord, the occasional horror story is par for the course. For me, my worst experience occurred after filing a notice for the tenant to vacate the property, coming back to check on the house before filing for eviction and finding the unit trashed. All the exterior doors and windows were left wide open, there was a cat inside, garbage and miscellaneous items left everywhere, and all the appliances were missing. This included the stove and the fridge!

How did you react when it first happened?

I think any landlords initial response in these kinds of cases is anger, and I definitely felt that. That anger soon turned to an almost comical non-belief in how bad the situation was. The repairs included clearing the miscellaneous items, replacing missing appliances, painting, a very deep clean and some minor cosmetic repairs. This all took about 1-2 months. Following all this, I was able to rent the property for a higher price than before, to much more reliable tenants.

What did you do to fix it?

All you can really do in these instances is clean up and use them as learning experiences for the future, which I did!

Key Takeaway

As a landlord, you want to protect your investment without leaving it vacant for long periods of time. While Justin lost money during the repair of his vacant property, he was able to restore and improve his rental unit giving him the ability to raise the rent. As a landlord, you also want to try to find and keep the best tenants possible. Attracting top-quality tenants starts with your property and if your property is in good condition, you will have an easier time finding respectable tenants.

What a many of these issues come down to is proper tenant screening. It is one of the most important ways you can protect your investment property. You can do this with SmartMove’s quick and reliable tenant screening service that allows you to make faster and more informed decisions. By paying more attention to your tenant screening upfront, you can avoid any costly evictions later, making your investment property more profitable in the long run.