(Chris the Landlord) Hi this is Chris calling to notify that due to non payment of rent these last two months we are going to move forward with assigning a move out date for you.
(Tenant) Is there anyway I could possibly have a few more weeks to get you the rent money?
(Chris the Landlord) Unfortunately we've exhausted all options due to the default of terms agreed upon in our lease agreement.
(Tenant) Ok, I understand. Give me 48 hours to move all of my things out of the house and clean up the place and I'll be gone.
(Chris the Landlord) Ok no problem!
(48 hours later) You arrive to your rental property, open the door and you have the above surprise waiting for you.
The shock of what you see and smell causes you to sit down and really evaluate if you want to continue to be a landlord anymore. I mean damn, what happened to the tenant cleaning up and leaving the house like it was when they arrived?
Picking The Wrong Area To Purchase Your Rental Property Can Be Costly
Not doing your research and picking the wrong area or zip code to purchase your property could cost you money. You want to make sure to try and buy in an area that is safe and thriving. The tenants that rent from you are mostly going to be from the area or nearby.
In certain zip codes in north Memphis, "C" rental areas can be a street by street decision as far as where to buy. The 38127 & 38128 zip codes are good examples of area's where there are great pockets to pick up rental property's but you have to do your homework. Remember safety and growth in an area should be at the top of your list.
If you want to purchase a property in the north Memphis "B" rental areas you will want to look in the 38128, 38133, 38134, 38135, 38016 & 38018 zip codes. New industries and businesses are making these area's home which is great for property value.
ABC's Of Real Estate Area's
I've mentioned B & C rental areas above so let me explain what I mean by that.
A area = 90% home ownership in the area and a 10% renters market
B area = 50% home ownership in the area and a 50% renters market
C area = Mostly renters are going to be in this area
Rental Homes In C & D areas
If you have a rental property located in some C or D area's it could be a challenge. From late payments, constant repair calls or damage to your rental property all can be issues you may have to deal with constantly.
Those constant issues can wear on some landlords and force them to consider if they want to remain a landlord. Imagine putting in a lot of time, money and care into making your rental property a place someone would love to live and call home. Then when a tenant moves out and you come to inspect the home you're not even able to recognize your once shiny gem.
Becoming a Landlord can be a very rewarding decision. It can create passive income and give you something that can be passed down to your children. It also can create headaches and drain your bank account if the wrong decisions are made. A lot of people jump in the ring of becoming a landlord but find out that it's not something they really love or want to deal with and decide to sell their property.
If you are a landlord and find yourself waking up in a cold sweat after dreaming about issues with tenants or your rental property it may be time for you to sell. If you do your homework you will be rewarded in the long run.
Well until next time continue to wash those hands and have a great week! I'm Out....