Real Estate Investors: 8 Steps to Avoid the $50,000 Tenant

Big gains can be made from real estate investors avoiding costly tenants

It was a beautifully maintained home and the elderly owner had been there for over 40 years. Her garden was very mature and perfect in every way – a testament to summer after summer of hours spent tending to the peach trees, trained apple trees, rose bushes and raspberry bushes that produced more than 25 gallon buckets a year.

The five hundred tulip bulbs made the whole yard come alive in the spring time. Inside was dated, like most homes that have had the same occupant for nearly a half-century, but it was meticulous. She was a sweet lady and one of my favourites.

Out of town real estate investors

Six years later I went to see the new out-of-town owner at the house. It was now vacant after a string of tenants. My heart sank as I parked my SUV on the front lawn. Unheard of before, but with the well-worn tire tracks I knew that I wasn’t the first. The driveway was simply too full of household garbage, a broken hot tub and other abandoned junk to leave enough room for parking.

I crossed the threshold and the putrid smell of animals, wet animals and pet waste stunned my senses. The vacuum is going, adding to the chaos and as I look around at the broken cabinets, destroyed appliances and beaten walls – I could tell that it is going to take a lot more than a vacuum. I knew my shoes would be sleeping outside that night when I got home.

These transient, puppy-mill operating tenants are proof that although great wealth can be created with real estate investment great piles of money and time, can be lost as well if you are not careful.

$50,000 tentant. Real estate investors beware

8 tips for placing tenants

The rules to follow for the savvy Real Estate Investor when placing tenants:

  1. Ask for their moving history. Be wary of frequent moves
  2. Get references from previous landlords
  3. Run a credit check (they may have to do one themselves and submit it to you)
  4. Put the rules in writing
  5. Check on the property shortly after the tenants move in and then periodically afterwards
  6. Don’t go with a lesser tenant because you can get a few extra dollars
  7. Be picky
  8. Be really picky

or

hire a professional property management company to do all of these things for you. [su_divider]

Contact us if you are looking for real estate investments. We can connect you with a management company that will ensure you do not place that $50,000 tenant!