Teaching Landlords to Find Their Quality Tenant!

Landlord Tip of the Month

March 2007 Always know who you are renting to. Look at their picture I.D. and make sure that the person filling out the application as John Doe looks like their picture. Also cross reference their I.D. info to the application. You should have a photo copy of this I.D. in your file if you decide to rent to them. courtesy of http://www.findthatqualitytenant.com

April 2007 Searching for the correct tenant can be a frustrating process. It might help a lot if you remember what it was like when you were a tenant. You probably didn’t worry about on-time rents, damaging the premises, or the house rules in the way that you should. Most tenants just don’t know what you go though. This means you might have to search awhile until you find one who does. It might help to keep this thought in mind: almost every landlord has been a tenant, but very few tenants have been landlords. courtesy of http://www.findthatqualitytenant.com

May 2007 Lighting is very important in a rental unit, therefore I recommend you do this. Replace all single bulb overhead lighting with fixtures that require at least two bulbs. This will help ensure that tenants always have one source of light even when a bulb burns out. Outside, add motion detector type lighting as they also come with two bulbs, again ensuring adequate light where needed. courtesy of http://www.findthatqualitytenant.com

June 2007 To make sure I get the exact kind of paint each time I paint it I do this: I have the paint department print me an extra label that they would put on the top of the can. I then take this label and place it on the backside of a business card.  Under the label, I will write.  1 gallon or 5 gallon formula, brand of paint, and sheen (flat, gloss,etc.). I then wrap this card in Scotch tape and keep it in my wallet. Now it is water resistant, and I have it with me whenever I need it. courtesy of http://www.findthatqualitytenant.com

July 2007 When verifying rent from previous or current landlords, I suggest you try this: ask the landlord to verify a rent that is significantly higher or lower than what your tenant applicant says they paid. Chances are very good that the true landlord knows what the rent is and will be able to correct your mistake. If the landlord agrees with whatever dollar amount you said, they could be an imposter covering for the tenant. This is not a guaranteed way to find out if you're speaking to the true landlord, but it can give you some clues on how to proceed. courtesy of http://www.findthatqualitytenant.com

August 2007 Whenever you are interviewing a tenant prospect ask a lot of questions that begin with, who, how, why, where, and what. Ask these questions in such a way that your answer is not revealed in the question.  In other words, “What is the name your pets?”  instead of “Do you have pets?” Asking questions in this manner will keep the applicant from knowing what answer you are looking for. Also stay away from questions that can easily be answered by yes and no.  Finally, when you do ask a question listen not only for the answer, but the tone and attitude in which it is given. courtesy of http://www.findthatqualitytenant.com

September 2007 Try to show up a few minutes early whenever you meet an applicant for a showing. Use this time to police the premises looking for broken windows, downspouts whose extensions are unattached, or trash laying in the yard. Check for junk mail in the mailbox.  Also walk around the inside of the premises, looking for signs of rodent droppings, or broken or damaged water pipes or windows. Doing this five minutes before each showing can make a difference in how your rental looks to the public. courtesy of http://www.findthatqualitytenant.com

October 2007 Searching for the correct tenant can be a frustrating process. It might help a lot if you remember what it was like when you were a tenant. You probably didn’t worry about on-time rents, damaging the premises, or the house rules in the way that you should. Most tenants just don’t know what you go though. This means you might have to search awhile under you find one who does. It might help to keep this thought in mind: almost every landlord has been a tenant, but very few tenants have been landlords. courtesy of http://www.findthatqualitytenant.com

November 2007 When real estate investors work on their continuing education, they always seem to get caught up in learning how to find deals that makes them more money faster. They often times forget to spend time and money educating themselves on the other areas of the business. Things like property management,tenant selection, or taxes. Being a good real estate investor means being balanced in all areas of your trade. Take the time and money to receive continuing education in all facets of the business. courtesy of http://www.findthatqualitytenant.com

December 2007 Your rental property is your business. Your tenants are your customers. Smart business people always let their customers know they are appreciated. Take this time of year to send your tenants a small token of your appreciation. Buy a $10 or $20 gift card from a local pizza parlor or restaurant, and send it with a Christmas card. This moment of consideration can go a long way to keeping a smooth relationship between you and your tenant. courtesy of http://www.findthatqualitytenant.com

January 2008 To help curb identity theft, many states are passing laws that allow a consumer to put a lock on their credit so that nobody can pull their credit information without their consent. Unfortunately, as a landlord, when the time comes to run a credit check on tenant applicants, this lock can slow things down. To help avoid the problem, when you are interviewing on the phone, ask the tenant prospect if they have this lock in place. If they do, you will have to ask them to remove it, at least from the credit reporting agency that you plan to use. Because of this new law, don't be tempted to bypass running of credit reports. They are too important. courtesy of http://www.findthatqualitytenant.com

February 2008 Anytime I prepare my property for the next tenant, I look for ways to reduce the likelihood of damages. One of the things I do is to hang items like my towel bars and other wall hangers with toggle bolts instead of the plastic expansion devices which are usually included with the towel rod. A toggle bolt is simply a regular bolt who's nut has been replaced with a spring-loaded fastener that expands against the back of the drywall as it is tightened. The expanding of the fastener gives a much stronger grip than the original fastener, thus making it virtually impossible to pull off the wall.courtesy of http://www.findthatqualitytenant.com

March 2008 Unfortunately, sometimes in this business you have to reject a particular caller. When you do, always do so with kid gloves. Leave the caller with their dignity, pride, and self worth at all times Keep these tips in mind; always apologize for the rejection, try not to blame them directly for the rejection, try to save them a commodity ( time or money), and wish them the best of luck before you hang up. If you turn people awaywith these techniques, you are much less likely to have any repercussions from your conversation.courtesy of http://www.findthatqualitytenant.com

April 2008 Last month I suggested that when you reject people you do not blame them directly. Even though they are really the reason you cannot rent to them, point the finger elsewhere. Blame you, your qualifications, your partner, the rental house itself, your insurance agent, etc. Here's an example: "I'm sorry, I always ask that income be three times rent and unfortunately you're about $500 shy of that figure. And even though you sound great, I can't sleep at night if I don't make my qualifications. I guess I'm just a "Nervous Nellie" in that respect. I'm sorry. Thank you for your time and good luck." courtesy of http://www.findthatqualitytenant.com

May 2008 Before they rental property, most landlords develop some kind of criteria they expect their tenants to meet in order to qualify for that property. I call these, Tenant Qualifications. However, what most landlords don't do is write these qualifications down on paper. This is crucial. Your qualifications need to be written on paper before you start to advertise or show the property. The reason is simple. Some callers will be pushy, bossy, will try to manipulate you, or try to control you. These written qualifications act as your guide and rudder and will help you get it back on track when things get tough. courtesy of http://www.findthatqualitytenant.com

June 2008 Our world is everchanging.one of those changes a greatly affects landlords is the world of credit, or more importantly, our tenants ability to pay bills. There are many ways to try tocombat this problem. My latest way is this; I am putting my tenants on the ACH collection system through my bank. Once you get on this system you will be able to deduct rent from their bank accounts with a couple hits of the key. The nice thing about this system is, you are in control. You do not have to worry about their bank's regulations because you were set up through yours. Even though you control the actual day of deductions, your tenants will believe this is all in the hand of the bank, thus saving you some of those irritating conversations of late rents. courtesy of http://www.findthatqualitytenant.com

July 2008 Whether you realize it or not, you are a professional business. It doesn't matter if you own 1 rental or 100, this still applies. One thing all successful businesses do is make decisions "based on the color green". What I mean by that is this; every decision they make is based on how it will affect the professionalism and bottom. In other words, the profit and loss of their business. As landlords, you need to think the same way. This includes not only management and spending money, but also your tenant selection. Use this concept in your business, and I guarantee you, you will become more profitable. courtesy of http://www.findthatqualitytenant.com

August 2008 Discrimination is a serious issue. As you are looking for quality tenants, it is important to keep away from issues protected by the Fair Housing Laws. Under the Fair Housing Act it is illegal to refuse to rent to someone based on their race, color, creed, national origin, religion, sex, family status, or disabilities. Absolutely stay away from these issues when searching for tenants. I can tell you for a fact, none of these issues are determining factors on your tenant being a "good tenant" or a "bad tenant". courtesy of http://www.findthatqualitytenant.com

September 2008 As I have mentioned in previous tips, it is important to develop tenant qualifications. However, in developing these qualifications, it is also important not break any of the Fair Housing Laws in the process. In order to stay on the right side of law, I recommend using this criteria for developing your qualifications. Develop your qualifications based on "things or habits that could affect the profitability or safety of your investing business, and if taken to court, would be recognized as such". This will go a long way in helping to keep you on the right track as you develop your qualifications. courtesy of http://www.findthatqualitytenant.com

October 2008 Every once in a while, when interviewing prospective tenants, you will hear somebody say that they need to rent a place today. Most of the time, they will tell you that they have one or two months cash upfront. Please be aware of these situations. In all my years of investing, I have never run into anybody who actually needed a place today. They may want a place today, but they don't need a place today. The reason I say that is this; I refused to believe that anybody who lost their place to live today through fire, tornado, or other means,couldn't find a friend, co-worker, relative, church, YMCA, or other government agency, to house them through the night. And if nothing else, if they have the cash for two months rent, they have the money for a cheap motel. No matter how soon a tenant wants to take over your rental, do not turn the keys over until you have completed your due diligence process. courtesy of http://www.findthatqualitytenant.com

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If you would like further infomation on this topic, please purchase my book "How to Find That Quality Tenant". Ask your locale bookstore or see my website at:www.findthatqualitytenant.com

I am not a lawyer, therefore, if you have any legal concerns with anything in this article, please contact the appropriate legal counsel.

The above article may be reproduced without my permission under the following conditions: author name, website, and contact information must accompany article and be prominently displayed, and the article must be reproduced in it's entirety.

Thank You. Don Conrad

Copyright 2006 Blue Collar Publishers
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e-mail: donconrad@findthatqualitytenant.com
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