Over the years, I have made many mistakes on tenant selection and have had the privilege of accumulating landlording stories. There is always value to a landlord education, even if provided by a tenant, and in the real estate game, the education can be very pricy. Almost all landlords have made similar mistakes, and it costs them dearly. Only the well capitalized or lucky landlords live to try it again.
One of my first rental investments was a couple of duplexes. I had one all cleaned up and ready to rent. Since I knew Section 8 was a guaranteed way to get rent, I figured “How can a landlord go wrong with that?” After all, most people are decent people and want to respect the property and the landlord. I quickly learned the hard way that tenants are not always that way.
Read More Here. I have listed the landlording stories and lessons to be remembered.
Do you have any interesting landlording stories? Or even a good renter story?
When you have a vacant rental, you will inevitable have to advertise and fill it. Unless you are extremely lucky, you will not rent to the first person who inquires on your rental — or at least the first person will not likely be qualified to live in it. You want to get the best tenants you can possibly attract to your rental.
Like it or not, you will be at some point showing your property to tenants that do not want to rent from you, or you do not want to rent to.
At some point, you will need to decline a rental applicant. This is one of the main problems landlords have: being unable to decline a tenant.
See the rest of the story here
I know many landlords, and despite my success at screening and selecting tenants, they often think somehow their property is different from mine. They do not think they can use the tenant credit score as a reliable indicator. They are ignoring tenant credit score to their own peril.
The fact is, tenant credit score is the most reliable indicator of tenant success that there is, bar none. You need to make sure that the tenant can afford the unit with an income of 3.5x the rent, but the tenant credit score will weed out the people that have behavioral issues and have no problem cheating anyone that they owe money to.
If you are a landlord, you know you need to do a background check. A critical piece is getting a credit report, complete with a credit score. The credit score is a summation of everything that goes on a credit report. It is calculated the same every time, with no bias to any discriminatory practices. It is colorblind and not subject to any fair housing issues.
Read More Here
What do you think of using tenant credit score to predict tenant payments and behaviors?
When you rent to family members, you have a unique set of circumstances. Not only do you have a solid and customer, you also have a customer that might take advantage of you. This post will help you understand the nuances of renting to family members. Whether it is moving a person back into the childhood room, or renting your investment property to them, the same criteria apply.
Continue reading “Renting to Family Members and Friends”
Remember, landlording is a game of probabilities and statistics. By targeting your market, you can maximize profits, that is simple Marketing 101. If you want to maximize your income, targeting your market is key.
There are good tenants in every category, but you are looking for the highest probability of success, not the needle in a haystack. Success is defined a tenant that pays rent, leaves the unit in good order, and you make money. Continue reading “Targeting Your Market to Maximize Income”
There are four pillars to tenant screening, including:
- Credit score
- Rental History
- Criminal background
All four are important, but credit score and income are the main ones.
Those two are the easiest to uncover and verify. They are also the most objective rather than subjective.
Continue reading “The Four Pillars Of Tenant Screening”
Have you ever wondered how how effective tenant screening can lead to higher profitability? This is my first post as an author at BiggerPockets.com and will explain effective tenant screening.
I have 24 renters, in two duplexes and five 4-plexes. I also screen for a large (120 unit) apartment complex, and approve or reject tenants. I make the call as to when a tenant is no longer an asset to our HOA community, and force other landlords to get rid of their tenants.
Through these experiences, I have seen many tenants’ backgrounds, and see how a background report can predict future tenant behaviors.
The following post contains a few random thoughts; I will focus in more detail on tenant screening topics in future articles. Be sure to follow my articles to get solid, no nonsense information on getting and keeping great tenants.
Continue reading “How Effective Tenant Screening Can Lead to Higher Profitability”
With my 24+ units, tenant turnover is inevitable. In my case, it happens every few months, to the tune of six to eight per year. Tenant turnover is not all that bad, if you get great tenants to start with. It’s when you have a marginal tenant that apartment turnover is a lot of work. Continue reading “Tenant Turnover, the Landlord’s Dreaded Moment”
This post will tell you how to use credit checks for screening renters.
Why do we care about Credit Records and Credit Score? A credit is score is an indicator of the probability of a default, nothing more. It will show if the person has been responsible with their finances. If a person is responsible with their finances, odds are, they are also responsible with the rest of their lives. A credit score of 700 or better, indicates a solid person. A credit score below 600, indicates a person with some issues, maybe permanent, maybe temporary. Continue reading “How to Use Credit Checks For Screening Renters”