Hope you're having a great week. If you're getting hit by this huge ice storm, please drive carefully today !
A great deal of any business in the Real Estate industry deals with tenants. Today, we're going to take a look at some tips for handling and managing tenants; easy tenants and difficult tenants.
Let's start out with a personal favorite, the "Easy Tenant". According to Jacob J. Gabrie, a Commercial Shopping Center Manager and a Broker and CEO of Town Center Realty Group in California, "They deserve lots of respect", since, "these are those that I don't have to constantly contact to remind to pay rent, they don't complain and really are the reason why a job like mine is as fantastic as it is". As Beth VanStory says, "With good tenants, I think the most important thing to do is be responsive and address issues promptly"
Now, for the flip side, the "Difficult Tenant". Gabrie says that he deals with this group firmly and "head on", and says that they lie regarding when the rent is coming, about providing a certificate of insurance, etc. Basically, as he describes it, "You give them an inch they take a mile- but that is the nature of these type of group."
VanStory tells us that she recently had a, "very challenging experience and learned two valuable lessons". The first lesson is to "Always thoroughly screen your applicants.", for example, as she says, "insist on speaking with previous landlords or property managers.", "Insist on a credit report.", and "If the law in your state allows, ask to see a bank statement.". VanStory points to her bad experience, where she failed to do this as she was in a rush, and says, "If I had done a thorough check I would have found out that my tenant had grossly misrepresented himself. I would not have rented to him had I done a thorough background check."
The second lesson mentioned by VanStory is to, "Use the law", and at the sign of the first problem, "begin to engage in every legal process available to you.", and, "Make sure you thoroughly understand the law." She said that with her bad experience, since she, "wanted to "get off on the right foot" and "be a nice landlord."", it cost her money.
VanStory says that, "It's not about being nice, it's about protecting your asset and it's a business. If the rent is late by whatever grace period you define (ours is days), immediately issue a "Pay or quit" and start all the legal documentation you will possibly need should you have to move to eviction." Similarly, Gabrie says that he maintains, "experienced collection and risk management executive on my staff who helps me keep this group in line as well- something that is not common in the industry."
Ultimately, it boils down to how much of a risk do you want to take? With less due diligence, your risk remains high, so if you have the means and resources to dig deep within the confines of the local laws, then definitely do so.
Have a Great Day, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com
TAGS: #tenant #landlord #creditcheck
