Landlording for maximum profitability and Financial Independence
This is a post about how to collect rent on time. It is a secret recipe that I am going to share. The rents for June have all been collected. 23 of 25 are in the bank as of June 3, 2014. Of course, that means I had them all in hand by yesterday, June 2. The other two are in hand, as of June 3, but not in the bank, yet. I challenge any other landlord to beat me on that record. Here is how I do it.
Continue reading “How to Collect Rent On Time”
The rental market has been very, very good to me… My properties have performed well over the past month (and years); getting 100% rent collected (25 for 25) by May 2, once again. One person, who paid on the second, apologized to me for being late. Try that with low credit score renters, who generally always pay late. But since I have a vacancy coming up, this is how I fill apartments quickly. Continue reading “How to Fill Apartments Quickly”
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”
When I first became a landlord, it was somewhat by accident. I didn’t even know I needed financial independence. I wasn’t sure what to do, and how to do it. I had a solid six-figure income job, and was able to weather out any storms. I left one place vacant for 18+ months, because I didn’t have the time to work on it. I took in some bad tenants, and suffered some aggravation. Luckily, I had the income and backup capital to weather any storms. Continue reading “Investment Property for Financial Independence”
I have to collect rent from 25 tenants every month. Most drop the check in the rent box in the building. In my duplexes, they tape it to the door. I have one that pays cash, and I stop by to give a receipt. Some do Bill Pay, and I get a check in the mail. One mails a check directly, with a stamp. One pays with PayPal. Some tenants are roommates, and they each pay with a check. Continue reading “Rent Collection: It’s April 2; do you know where your rents are?”
I am always surprised when a landlord cannot get their place rented. Sometimes, they say “I am waiting on the ‘right’ tenant”. It all boils down to marketing rental property properly. Continue reading “Marketing Rental Property is like Selling Bananas”
By August 2009, I was ready for another investment property purchase. The previous properties I had purchased were going well. I was looking in the same complex, as I knew the process and knew the rental market. Continue reading “My Ninth Investment Property, my Third 4-plex”
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”
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?”
