In part 1...we introduce you to the concept of owning rental property. I congratulated you on your thinking process. It can be one of the most rewarding and lucrative Real Estate experiences. It can also be the cause of trauma, shock and ruin. Decisions you make or don't make will determine the outcome.
PROFESSIONAL PROPERTY MANAGEMENT
There are people who do this for a living. Some do it better than others. Find them and pay them and you have taken out the best insurance available. If you intend to travel along your own learning curve, I wish you a successful journey. The odds are not in your favor.
GET THE HELL OUT OF HERE...TAKE THIS $$$
I have had tenants that I have paid to get out. It is not unlike insurance companies that are sued all the time over frivolous and ridiculous suits. They know it is cheaper to pay than to oppose. I have had those scenarios come up and while it smarts in the moment be taken advantaged of, it is-smart to settle and pay up.
YOUR WORST FEARS
I have evicted and or negotiated evictions with bikers, drug dealers, people who were arrested, trespassers, squatters, transients and relatives who are in possession of properties that I took over or who illegally tip-toed in one way or the other. I had one couple who moved into a vacant property, manufactured a lease with the old owners name and signature on it, fabricated phony receipts for move-in monies etc. The acting when confronted was Oscar worthy...My response won the Oscar
CALLING THE POLICE
Oh they come out but don't expect them to side with the land BARON. They will do an investigation and make an assessment or report. 99% of the time you will be told it is a civil matter and to consult with an attorney. The wrong doer gets empowered with every defeat or misstep from you. Meanwhile, your financial debt clock is ticking
THE UNKNOWNS ABOUND
I have dealt with abandoned premises full of furniture. Either divorce, being arrested or even death has brought about challenging circumstances to re-take possession of the premises. If not done correctly, lawsuits are awaiting to teach you a lesson. All during this time, you must pay the mortgage, make repairs and re-enter the rental market
Having a good agreement is a must too. Asbestos, lead poising, drugs manufactured on premises, death in the unit and unsafe electrical or plumbing as well as an uninhabitable premises all add to your exposure. Verbal agreements all come down to credibility and a judge deciding whose lying the least. On written agreements, having one clause in or missing one can make a big difference. That is why having a solid seasoned rental agreement is very important.
RENTAL STRATEGIES...YOU GOT ONE?
There are so many ways to conduct the renting of a property as a business. Everyone wants top dollar for rents, but with that comes top responsibilities too. Sometimes waiting for the right person to come along can be expensive. Lowering the rents for more choice pickings keeps the renter in the unit and lessens the vacancy losses. You can even negotiate repairs with the right people but have in place sure-fire agreements.
MAKE MANAGEMENT PART OF YOUR PLANNING
I can easily make this a 10 part series or better yet, write a comprehensive must read book that would become a best seller. Right now, all I want you to do is to consider buying an investment property whether income, residential or commercial. Then, complete the process by including on your purchasing team a professional property manager. Very smart move on your part
THE BIG PICTURE NEEDS SPECIAL ATTENTION
If you already have property, then take action now. Do not wait to have an unpleasant experience to consider this post. The value is in being PROACTIVE...safe and never sorry. Nipping it in the bud if you will. Then, the management storms will come, but they wont prevail. Years later, with the right decisions, your investment property will serve you well
PROPERTY MANAGEMENT TALES FOR THE FRONT LINES part 1