“What if a tenant stops paying rent?”.
A bad tenant reduces cash flow – usually enough to turn positive cash flow into a devastating negative loss.
One month your income property is paying you – the next you are having to pay the difference of lost rent.
That’s a real problem if you are relying on your rental income to pay your mortgage, property tax, repairs and the other expenses that come with property ownership.
Check out: Effective rent collection
Real Estate Investors Often Consider:
Cash for Keys: A true investor is only interested in the bottom line. Sometimes paying the tenant to leave now makes more sense than going after them through eviction.
Eviction: Eviction can be labor-some and quite daunting to a layperson; but there are attorneys that specialize in evictions. These attorneys have streamlined systems in place. This can greatly expedite the process of eviction and reduce the legal fees dramatically.
Low cost and get your unit back to market.
As a property management company, my recommendation to you is to thoroughly screen all potential tenants.
Furthermore: Common issues faced by tenants
This includes criminal, credit, background, employment, past landlords and eviction histories.
While screening potential tenants remember a good tenant will pay you. A bad tenant you will pay.
How much would it be worth to you to avoid a bad tenant before they become your problem?
The name of the game with evictions is avoid it from ever coming up.
But evictions aren’t the end of the world and we maintain a law solution for our clients should it ever arise.
Remember, investing in real estate, isn’t about taking risks.
With the right approach and the right management, it should always a sure thing.