Wednesday, September 27. 2006Lose Those Bad Tenants Already: Vol. 2
Finding Tenants is an arduous process. Full of potential legal pitfalls, and pre-screening failures. Criminals, practicing addicts, deadbeats and con artists. They all need somewhere to live, and there’s a chance that they’ll slip right through your defenses and end up with their name on one of your mailboxes.
If it happens, take solace in knowing you are far from alone in your tragedy. There are others who have suffered too. Lose Those Bad Tenants Already. Mar, over on First The Bad News is suffering through a pretty typical problem. Typical for HOTEL OWNERS. She rented to one person, expecting that it would remain that way, only to discover that the Tenant is funneling people in and through the property like it’s a home for wayward family members, amplified drama and all. Fantastic. Europe has been slugging through Tenant issues far longer than we have here. But it looks like the British are ahead of the curve with a website that is designed to help Landlords recognize and avoid bad Tenants: Badtenants.co.uk. Scary quote from their site: Letting Agencies, in order to comply with the Data Protection Act, need to make their tenants fully aware inside their tenancy agreements that if they cause damage to the property, or leave while still owing money they will be elligble to have their information and photograph appear on this website. They aren’t screwing around across the pond. It’s only a matter of time before someone fires up the same info train here in The States. Wednesday, September 27. 2006Book Review: "The Complete Guide to Your Real Estate Closing" by Sandy Gadow Closing. If you've already been to the closing table, hearing the word may evoke feelings of accomplishment. If you're just starting out in the real-estate business, however, the mere word can trigger overwhelming feelings of dread and foreboding. If you want to become a success in real estate, closing is a rite of passage that you cannot and should not avoid. Unless someone helps you walk through the process, attending a closing can make you feel like you're visiting a foreign country where nobody speaks your language and everybody knows what's going on but you. When traveling, you can alleviate these fears by reading a travel guide written by an insider whose experience skillfully guides you through your journey; for example, a Frommers guide. When attending a real estate closing, you can read The Complete Guide to Your Real Estate Closing by Sandy Gadow. Don't hesitate to judge this book by its cover because the title describes exactly what you get. The book follows the closing process chronologically from beginning to end so you can visualize each step of the process and understand why each step must take place in the order it occurs. The author ingeniously titles each chapter with a question that the buyer/seller/investor may ask at that point in the process. Gadow then provides the answers to these questions clearly, concisely, and in layman's terms without adding fluff or irrelevant narration. The first chapter alone is extremely helpful -- a complete overview of the closing process from beginning to end. In one simple chapter, Gadow answers all the questions about who does what and when. If you need a visual representation that shows when events take place, the end of the chapter includes an actual timetable for a typical closing. The timetable helps alleviate anxiety associated with a closing by putting the timing of events into a cohesive perspective. If you want further proof of the author's expertise, flip to the sections in each chapter called "A Typical Misunderstanding" and "The Way Things Really Are." In my opinion, it takes an insider to know which aspects of a process often are misinterpreted and how to clarify them for readers. These sections in conjunction with the "Tips" sections leave little doubt about the author's experience in real-estate transactions. Although The Complete Guide is not presented as a handbook, you can use it as a practical guide. The book is an incredibly user-friendly reference tool complete with checklists and forms. The tables, appendices, glossary, and index are relevant, helpful, and easy to use. Gadow's book is the best tool I've seen that covers the subject of closing. After you read it, the practical knowledge you have gained may eliminate the dread you once felt and allow you to approach a closing with the sense that you not only speak the language but that you've been there before. Wednesday, September 20. 2006Increasing Tenant Payment Reliability
The primary method for increasing tenant payment reliability is to screen your tenants by remembering your ABCD's of real-estate investing: Application, Background Check, Credit Check, and Deposit.
After your property is occupied, you can employ several strategies to motivate your tenant to make prompt, consistent payments. Through trial and error, you can determine which of the following methods work best for your business.  Strategy 1: Pick up checks personally.This strategy is time-consuming but can prove useful on several levels. As long as the tenants are aware that this is the preferred payment method, you can use the opportunity each month to tour the property and stay on top of maintenance and compliance issues. I've even heard of one landlord who replaced A/C filters during her payment pick-up visits each month to ensure that this task wasn't overlooked by her tenants. You'll have to arrange a safe place for tenants to leave checks if they aren't home to hand-deliver to you. Another negative is that you could find yourself in a situation where a tenant is not able or willing to pay on time, which could lead to an uncomfortable confrontation and/or sob story. Continue reading "Increasing Tenant Payment Reliability" Monday, September 18. 2006Wednesday, September 13. 2006 |
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