My Rental Property Isn't Making Money and I've Had Nothing but Trouble, Why?

Maybe you should be thinking differently...
"Why should I spend a lot of money on my rental property?", "My Tenants are going to beat the heck out of it anyway" --- EXACTLY!

It may be true that your tenants are going to beat-up your rental property, So... Be proactive by using better products which are more durable and will ultimately save you time, money and aggravation in the end.

Follow These Steps to Protect Your Property, Start Making MONEY and Avoid Problem Tenants

Four Steps to Becoming a Better Landlord

Step 1: Prepare Your Property for War

Step 2: Thorough Tenant Screening is Key

Step 3: Lease Agreement Protection

Step 4: Prepare to Press the Eviction Button

Let Me Show You Several Ways to Make $MONEY$ with your Rental Property and Avoid Lots of Headaches!

Step 1: Prepare Your Property for War

Start by protecting your rental property by building it like an armored tank! Why? An armored tank is tough, really tough, it can withstand all kinds of punishment, bullets, bombs and who knows what else?

Here are a few examples of what can happen to your rental property and how you can protect it...

Oh No! My tenants took the 9 volt battery!
Cheap smoke detectors go off frequently when cooking and usually come with a lousy battery that causes that annoying "BEEP" sound. Your tenant's solution? Remove the battery or just take the smoke detectors down completely.

Solution: Install The "Tenant Proof" Smoke Detector from First Alert.
It's Tamper-proof design prevents Tenants from removing the battery AND it's battery last 10 YEARS! You know your Tenant can't cook, so there's a mute button too.

Order Smoke Detectors here: Products for Real Estate Investing

What the ****? My Tenants told me they were going to fix up the place?
Try as you may to avoid it, tenants are going to be tenants....furniture will bet banged into a wall, posters will be hung by tape, stickers will be affixed, children's artwork creations proudly presented..... Whatever happened to paper and easels?

Solution: Use High Quality Eggshell Finish Paint
You should always use high quality paint that is made to withstand abuse. Eggshell finish is great, it can be compared to an egg, hence the name "eggshell" which contains only a hint of shine or gloss. Yet, it is completely washable and is much more durable than flat paint. This low sheen paint is also good at hiding defects on the wall as well. Scrub-able-scrub-able-scrub-able! Did I say scrub-able? Using a high quality, washable paint that can be scrubbed may save you from having to re-paint an entire wall. Wouldn't you rather just wipe it clean? This will save you time & money in the long run.

Tenant: Whoops... just had another spill
When you're putting in carpet, always be aware that not only may your tenants have kids but they may have pets too. These are just a few of challenges your carpet will be up against. This can easily add up to costly new carpet.

Solution: Use Stain Resistant, Dark, Multi-Color Carpet
Using a dark color or a pattern carpet can make a big difference over the years of tenant use and abuse. Sculpted multi-colored designs or darker colored carpeting are best as they will not show dirt or footprints easily. Although this carpet can be a bit more expensive, it will have a longer life span than the cheap, plush, light colored carpet that a lot of landlords use.

Read My Lips, No More Bugs
This is a problem most landlords would like to ignore. Pest (and Rodents too) are problems you have to deal with as a landlord. Simply calling an exterminator to come out over and over again is just a very costly solution.

Solution: DIY Exterminating will save lots of dough and you'll have happy Tenants
The good news is there are more efficient and affordable solutions. Maxforce bait stations last for a year and solve most any roach problem. And, for rodents you can use Maki pellets or Catchmaster glue traps.

Order Exterminating Products here: Products for Real Estate Investing

Hey What Happened to the Lights?
After a Tenant moves out you may notice that about half the lights are not working. Don't call that electrician yet, more than likely you just need to replace the light bulbs. Why? Well Tenants tend not to replace light bulbs when they go out.

Order Long Life Light Bulbs here: Products for Real Estate Investing

Bargain Tile is Expensive!? Huh?
Sure they sell cheap 12x12 tile, but is this really a bargain? After the time and expense of installing, if the tile itself doesn't last you're going to pay more in the end by using those so called bargain tiles. Just be sure to use either ceramic or good quality, durable vinyl tile.

Summary:
As you can see using the cheapest material in a rental property may not really be saving you money.


Now that your property is ready, it's time for you to find the right Tenant...


Step 2: Tenant Screening is Key

Screening Your Tenants by Phone
Use this Phone Screening Form to keep track of all the calls you receive when your listing your property for rent. This will prompt you to ask the right questions, such as: Do you have any pets?; When would you like to move in?; Is the deposit money available now? Other tips: Be sure to exchange cell phone numbers when you make an appointment to show your rental, because your tenants are going to get lost and will likely be late. Have the tenant call you one hour before the appointment to make sure they are going to show up.

Be Picky When You are
Looking for your Next Tenant
Would you entrust the care of your children to this woman? I would hope not!! Be just as "picky" about who you choose to rent your property to! Don't be overly anxious to get a tenant in your rental property so quickly.

Start off with a Good Rental Application
Why is this so important? Well not only do you need it to screen your tenant, but if the tenant owes you a lot of money, they will most likely move out without telling you. Then you are going to have to track them down by using the information on the rental application. So keep the rental application in a safe place even long after the tenant has moves in.

You can get one here: Free Rental Application

Perform a Credit Check
The laws for performing credit checks have changed a lot in recent years, so make sure you use a company that specializes in this service. Another alternative is to have your tenant run their own credit and either email it or deliver it to you.

Verify Employment
Ask the applicants for copies of their latest paystub(s), look for the net (bring home) amount and look for any deductions, such as child support. You can also call their current employer and make sure everything checks out.

Give the Tenant a Surprise Visit
Use an excuse to visit your prospective tenant wherever they are currently staying. This enables you to see if they are neat and clean or they are living like slobs.

So.....

Take your time to find the right tenant and everyone will be happy!

The tenant will have a lovely place to live and the landlord will have revenue coming in.



Step 3: The Residential Lease - The Ultimate in Protection

When it comes time for the Lease Agreement the key is to Spell It Out! It's just way to easy to think everything will be just fine after you have met and screened your tenant. Don't get caught in this trap! You need to have a bullet proof lease to protect you. If and when anything goes wrong you are going to look at the lease to protect you. Take the time and find the best lease that will provide you the most protection.

Your lease is the script that you and your tenant will follow. It tells the tenant:
• How long will they be renting?
• What they are paying?
• When it's due?
• Who takes care of repairs maintenance and yard work?
• What happens if the rent is late?
• What rules are there to follow?
• What happens if a rules is broken?

Checkout My Other Page on How to Build a Lease Agreement Online.

Wait, Before you sign the Lease...

Was your rental property built before 1978? If it was, don't forget to give your Tenants a Lead Based Paint Pamphlet and have them sign a Lead Based Paint Disclosure. These documents are required by law when you are renting or selling a property built before 1978. If you already have a Tenant renting from you and you did not use these documents, it's not too late but just take care of it now.

You can get these forms here: Free Landlord Forms

Other Leasing Tips...

• Print 2 copies of the lease, the tenant will keep one and you keep one.
• Have the tenants initial important areas such as late rent procedures to ensure that they understand it.
• Make sure that the Tenant gets the utilities switched into their own name.
• Make sure you collect all of the money owed (security deposit, first month's rent etc.), before you give the tenant the keys.

Try a Step by Step Lease Wizard here: Lease Agreement