Learn How To Start Investing In Real Estate
Learn How To Start Investing In Real Estate

How To Deal With Nightmare Neighbors

Written by Paul Esajian

What should real estate investors do when nightmare neighbors threaten to sabotage their investments?

Sadly this is not that uncommon, and yet, it is one factor that those newer to real estate investing frequently overlook. If ignored, nightmare neighbors can quickly derail any investment opportunities.

Neighbors can have a much bigger impact on real estate investments than most realize. It can apply to trying to sell a home, renting one out, and just general wealth preservation.

Troublesome neighbors can come with a variety of issues that range from: blocking attempts to sell, causing tenants to move out early, bringing down values, and just being a nuisance.

Sometimes it is bitter and uneducated homeowners next door. Other times it is a home owners association board member, tenants or even a squatter.

So what’s the fix?

While each case can be unique, there is a 5 step plan that can help bring some clarity and guidance. If taken seriously, the plan can allow real estate investing professionals to cool down and avoid making rash decisions that can sometimes be very costly.

Whatever you do, don’t lash out and retaliate verbally, physically or by messing with their property. It won’t end well.

Instead, attempt the following:

  1. Find out the real problem. You can’t solve it otherwise.
  2. Try to appease them, make nice, plead if you have to and rationalize the situation.
  3. Offer incentives if you must. This can range from paying them to move or a night out during your showing times.
  4. Consider buying the neighboring property. It may be the win-win everyone wants.
  5. If none of the above works, take legal action as applicable. Just do this carefully and aware of the potential repercussions, and be more careful when completing due diligence next time.