A few thoughts on tenants. Dean teaches us that there is no such thing as a bad tenant. Just bad landlords.
When I first started my education and my love for Real Estate, I thought that statement was ridiculous. If a tenant is not paying, or their destroying your property, or even if they call every other day because a faucet is leaking. How is that not a bad tenant? Because the landlord is at fault.
I've lived this. I feel like our company has always been pretty good with our tenants. Until one wasn't paying & hadn't payed for 2 months. The BAD landlord has a fit, evicts the tenant & sues them. We could have done that. It would have taken some to get someone else in to rent, but we could have had one in within a couple of months.
Is that the best thing for your company? Did you do all that you could to keep them in?
We decided that people deserve a second chance. Because the tenant was so behind, we decided to lower the rent just a little, and told them to pay back a little by little each month until the catch up. What happened? They have been paying each month ever since, chipping in a few bucks here and there to get back on track.
Why did we take less money? Why didn't we just evict them & get another tenant in within a month?
Maybe the next tenant is just like the one that you just evicted. You would have wasted time & money. Even if we aren't making as much as we were in the property, we are still getting good cash flow, we didn't have to waste time on finding that new tenant (time is more valuable than money), and most importantly, tenant is happy.
When you try to make sure everything is set up for the tenant, they feel obligated to pay each month, not trash your house, ect.
When you have a new property, try to go below the average rent in the community that the property is in. You may be pleasantly surprised at the results.
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