How to identify and deal with problem tenants

Every landlord wants reliable tenants who pay rent on time, care for the property, and respect their lease obligations. Unfortunately, not all tenancies go smoothly. Many landlords have experienced tenants who stop paying rent, damage the property, disturb neighbours, or worse. These situations are not only financially damaging but also emotionally draining.

While strong screening processes and an experienced property manager reduce the risk, no system is foolproof. Even tenants who appear perfect on paper can sometimes become problematic. To better protect yourself, it’s important to understand the common behaviours of bad tenants and how to address them.

1. Late or Partial Rent Payments
The most frequent issue landlords face is rent arrears. Problem tenants often have repeated excuses for late or incomplete payments. At lease signing, set clear expectations and emphasise that rent must be paid in full and on time. While unforeseen circumstances—such as job loss or relationship breakdown—can turn a good tenancy bad, consistent communication and a professional approach are key to resolution.

2. Destructive Tenants
Damage, whether deliberate or accidental, is the second most common issue. Regular inspections (ideally every three months) allow landlords or managers to identify problems early, including unauthorised alterations. Tenants found in breach should be issued with a formal Notice to Remedy, ensuring the lease terms are enforced.

3. Party Hosts and Unauthorized Occupants
Excessive noise, frequent parties, and unauthorised long-term guests cause neighbour complaints and additional wear on the property. Some tenants may even sublet through platforms like Airbnb—directly breaching the lease. In such cases, issue a Notice to Remedy. Persistent breaches can lead to tribunal action and termination of the tenancy.

4. High-Maintenance Tenants
These tenants frequently lodge unreasonable complaints, consuming time and resources. While landlords must keep the property safe and well maintained, not every demand is justified. Property managers help by identifying legitimate issues during inspections and communicating necessary repairs clearly. For unreasonable tenants, it is often best to complete the lease term and then reassess renewal.

5. Pet Smuggling Tenants
Despite lease restrictions, some tenants attempt to keep pets secretly. If evidence of a pet is found, the landlord should request immediate removal or issue a Notice to Remedy. For approved pets, regular inspections help ensure the property is kept in good condition and damage is minimised.

6. Lawbreaking Tenants
While less common, tenants engaging in illegal activities—such as drug production—pose serious risks. Beyond lease breaches, this becomes a criminal matter. If illegal activity is suspected, landlords should involve the police immediately, as the consequences extend far beyond the property itself.

Reducing the Risk

Problem tenants are the minority, but their impact can be significant. Strong tenant screening is the best defence. Experienced property managers use databases, references, and professional judgment to spot red flags. Private landlords should also conduct checks through the TICA National Tenancy Database—an affordable tool at just $14.95 per applicant.

Final Thoughts

Bad tenants may be unavoidable at times, but their risks can be greatly reduced through diligent screening, regular inspections, and firm but fair enforcement of lease agreements. Partnering with an experienced property manager provides the best safeguard—protecting both your property and your peace of mind.