Landlording and Finding Good Tenants

From Buyincomeproperties.com

Landlord
Landlording and Finding Good Tenants - Part I
By Real Estate Investing
Apr 11, 2006, 22:16

One of the hardest aspects of dealing with tenants, especially very young ones, is their tendency
to view the landlord as a surrogate parent or authority figure. Tenants do often assume—without
actually thinking about it—that landlords own the property free and clear, and are quite rich. From
their point of view they are handing over cash and you are taking it each month. Tenants do not
think ahead to the fact that you have to pay your own mortgage. So when you apply strict rules
about getting the rent ma timely manner, tenants may think you are being unreasonable. Some tenant
education is then in order, if only to help them to see the bigger picture more realistically.

Tenants probably will not understand the fact that as a beginning investor, you have to pay your
mortgage, keep the property in good repair, and pay other operating expenses as they arise—while
living with the risk that the rent might not come in next month. Even so, the purpose in trying to
educate your tenants should not be in sympathy or to help them adopt your point of view. The
purpose is only to expand their understanding of lie overall situation, to help them learn that
there is more at stake than just whether they can make the rent this month. Younger tenants lack
the life experience to see the bigger picture without help, or to analyze situations from another
person's point of view. Your explaining these matters to tenants might have the effect of making
them more responsible and more aware.

Landlording is indeed the human relations side of real estate investing. When you invest in the
stock market, you only have to deal with a stockbroker and other investors. But in real estate,
there is no insulation between you and the infinite variety of human nature.

A mature, responsible, honest tenant is delightful, and such tenants can be found. But you should
realize that it is easier to find an immature, irresponsible, dishonest tenant. You will save
yourself time and money by screening applicants will extreme care.

Your landlording task will be greatly simplified if you invest a small amount of time at the
beginning of the process. That is the key. Look for danger signals, and simply do not rent to
people no matter how personable, who exhibit those signals. Watch out for some signs...