Landlording for maximum profitability and Financial Independence
I wanted to expand on the credit score criteria in any Tenant Screening Requirements just a bit.
It is a fact that lower credit score individuals are a high risk to insurance companies, and for collecting payments. It is a fact that lower credit score individuals engage in riskier behaviors.
Here is why tenants with a low (or 0) are high risk.
Continue reading “Risk of Tenants with Low Credit Score Explained”
Most residential leases have a clause in them that say the tenant is responsible for all “Attorney Fees”. This was very common until the Minnesota Tenant’s Bill of Rights passed last year, in 2010. Continue reading “Attorneys Clause in Leases”
My eighth investment property was a bit more creative. It was a 4-plex, built in 1984 (i.e. no lead paint issues). All four of the apartments were three bedrooms, 1 bath. As with most of my properties, it was a distressed sale. Continue reading “My Eighth Investment Property, my second 4-plex”
The fact is, about 85% of America has a credit score above 600. At 600, you start to get below a 50% default rate on mortgages, and an even higher default on rents. Remember, you are not looking for an average renter for your quality unit; you want a quality renter for your quality unit. Continue reading “Why Avoid Tenants with Credit Scores Below 600?”
One way to reduce tenant lockouts is to have a deadbolt with a key, not a locking door knob. Change the actual door knob to a hall /closet knob. One without a lock. The security is provided by the deadbolt, you do not need two key-able locks. That way, you can only get locked out if you had the keys when you left.
Continue reading “Avoiding Lockouts and Keeping Track of Keys”
Should I allow my renter to have a dog? In order to reach the greatest possible audience, you need to market correctly, and avoid excluding large pools of renters. Some pools of renters you do not want, criminals and deadbeats being two of them. But pets are another issue. A tenant may “check out great otherwise”, by a landlords definition, but they have a pet. Should you take the tenants with dogs? Continue reading “Should I allow my renter to have a dog?”
When your tenants leave, there are normally a few personal belongings left. Sometimes it is a couch, a mattress, or it could be as little as a pair of pants hanging in the back of a closet. MN law says you must store these items for 28 days. Most often, the tenant never comes back. If you are like me, I take pictures of what I have to throw away. Sometimes I ask if they are coming back for any additional items and they always say no. Of course good tenants do not leave junk behind. Continue reading “Personal belongings left at the end of the tenancy”
A little unconventional wisdom regarding late rents. Your rent is late, should you be concerned? Odds are you have a problem and are headed for an eviction, but here’s something to think about. Continue reading “Late Rents and What They Mean”
This is a rental situation that is run across many more times than you think, the landlord trap. If you think it is your tenant scenario, it may be, but it happens so often it isn’t funny. Continue reading “The Landlord Trap, Do not get caught in it”
Sometimes, we think we have to attract quality tenants in unconventional ways. Many people have no money. After showing your unit many times, you do not think anyone has any money. Some people have lower income levels. Some people lack the ability to save, and a landlord wants to “get them in”, so they lower the tenant’s entry hurdle or security deposit. This is a mistake that will almost always come back to haunt you. You have a hard time renting your unit, and you finally have a tenant willing to move in. The only issue is, they do not have enough money to move in. They probably do not have a high credit score either. Continue reading “Lowering the Rent vs. Lowering the Deposit to Attract Quality Tenants”
