Scumbag Tenants

[2na]

uhgg - work related topic. I come here to be free of this.

I've been running my family apartment business since 1985 and I've been involved in it since I was 5, big enough to vacuum the halls, rake the leaves and shovel the snow. I could go on and on re: horror stories; fortunately mine have not been this bad. Let it suffice to say that the single most important thing that anyone who thinks of buying an income property had best be prepared to do is to qualify a prospective tenant properly and not even think of 'taking a chance', giving someone a chance because 'they seemed ok', etc. Emotion can not play any part in your decision - it must be strickly an informed business decision. The odds have to be in your favor in order to go through with it.

Rule #1: do not ever let someone take control of an asset of yours worth $100k+ unless they have good credit. Read this sentence over a couple of times, especially the part about 'an asset of yours worth $100k+'. Look what has happened to Chef's girl's landlord because he did not properly vet a prospect (and, with all due respect, renting to an ex stripper with kids and a car on the way to repo? are you kidding me?). People with good credit have established a proven track record of showing respect for their debts and obligations to others. A prospect such as this is almost a lead pipe cinch to take care of your place, less occasional bouts of unintended ignorance. It is also highly doubtful that someone with good credit will drive out your existing good tenants by having crack parties, etc. - the two character traits (good credit/crackhead) are incompatible.

Do not trust references, either landlord or employer. How do you know that the prospect hasn't just given out his friends # to you saying that 'this my landlord'? and how stupid would one have to be to give you the info on someone who they have burned? They can not f with a credit report. It does not lie. It is an impartial assesment of a prospect's creditworthiness.

A word about section 8 - there are many fine section 8 prospects. LISTEN UP! It is against the law, and can get you sued up the ying yang, to discriminate against a Sec 8. Just think of some sharp lawyer slurping your hard earned equity out of your house, and more. You can not refuse a prospect based on their Sec 8 status. But there is always rule #1 (hint hint).

Rule #2: Never ever rent to friends, family or acquaintances. Better off having someone pissed at you for a couple of years than permanently when you discover their character flaws or they decide that you are an hole because you expect the rent on time, won't let them do whatever they want 'because we're cool, right?'. Remember that these type of prospects know a lot about you - your friends, family, hangouts, etc., and if things sour everyone is going to be informed about what a wonderful human being you are. The downside to this type of business arrangement far outweighs any upside. You run a business to make money - don't let a friendship cloud your decisions. As a landlord expect to be placed in the position that you are going to have to make a lot of hard decisions that someone isn't going to like. It is your job to look out for yourself, because no one else is getting paid to do it. Violate this rule at your peril.

I could go on and on. I'll stop here. Anyone thinking of dipping their toes into the rental waters feel free to pm me.