Don’t Let Bad Tenants Steal Your Enthusiasm for Real Estate

You see a great property. You can get it way below market value. You go in and fix it up. Rehab is a breeze because you know this property has tremendous potential.

You get burned. Your tenants quit paying. You have to evict them.

Now what?

Polar BearBerlin’s most fav polar bear, Knut, is hitting those awkward times that every child goes through.

 

In summary, he’s losing his cuteness.  He’s just not as adorable as he was a few weeks ago.

 

Of course, he’s still popular with the crowds, but in a different way. 

 

The shine is off though.

 

 

How often does this happen with real estate?

 

 

You see a great property.  You can get it way below market value.  You go in and fix it up.  Rehab is a breeze because you know this [tag-ice]property[/tag-ice] has tremendous potential.

 

Then you rent it out…

You get burned.  Your [tag-tec]tenants[/tag-tec] quit paying.  You have to evict them. 

 

Finally you get them out, but not before they tear out all the appliances, including the toilets. 

 

You’re cooked, or at least you feel that way.

 

What’s next?

 

Learn how to do it right next time.

 

The most important rule for landlording is to know how to screen properly.  It can be done successfully and many  prosperous [tag-self]landlords[/tag-self] do it everyday.

 

But here’s the key.

 

Find out if that tenant prospect pays his other bills on time .  If he does, he’ll pay you.  If not, he won’t.

 

We’ll give more tips later, but keep in mind your tenants’ credit is vital.  You must know if he makes enough money to live in your property and if he will pay you on time every month.  Once you’ve got that info, most likely he’ll do fine.

 

But get his credit report in your hands.

 

Let the deadbeats live somewhere else.  Don’t allow them to take the shine and excitement off the investments which can have the leverage power to provide for you all the way through old age.

 

Read more about Knut

 

 

Leave a Reply