The bad economy gave birth to many accidental landlords; people who couldn’t sell their properties and were forced to rent them out instead. I see many terrible situations caused by desperate landlords. Remember, it’s a lot harder to get rid of bad tenants than it is to find a good ones. Follow these rules and you’ll greatly reduce the chances of being in the same horrible situations I see over & over.
1. ALWAYS Verify all information on the application and check references. Make sure you call their jobs to verify employment & the previous landlords to see if they paid their rent on time & took care of their home. Make sure you see original pay stubs. Copy their driver’s license. They might not be who they say they are. Then run a criminal background check, and credit report. Don’t consider renting to anyone whose information can’t be verified as true.
2. ALWAYS use a written & signed lease agreement that spells out all the terms. Then enforce them. If the lease says a late charge is due on the 4th day, charge it, or serve the 3 day notice if it’s past the grace period. If you are relaxed about collecting the rent, your tenants can get relaxed about paying on time. Then if you end up in court, you risk letting the judge think your lease is no longer binding because you didn’t stick to the terms.
3. ALWAYS put any changes to the lease in writing. Make sure all parties sign it & get a copy.
4. NEVER take your time with repairs. It’s your job to make sure your house is well maintained. Your tenants pay rent for the use & enjoyment of your home. Besides that, letting things go turn into bigger more expensive problems.
5. NEVER let your tenants think that your relationship with them is anything other than business. Then you’ll be spared the sob stories at the first of the month.
6. NEVER try to evict anyone without using a professional. The courts are very technical and the law favors your tenants. Everything must done perfectly, from the terms on all your documents to the way documents are served. One mistake can be fatal and cost you precious time & money. Don’t take a chance.
