Real Estate Investing : IRON FIST Property Management!
Anyone who has been in the rental business for more than three months knows the biggest problem…TENANTS, TENANTS, and of course TENANTS!!! No question about it.
Who are these people who call you with all these lame excuses and situations that seem to unfold so effortlessly in their lives month after month? Their consistent stream of BS is simply amazing!
Here is the life changing kicker…you don’t have to put up with it!
It all starts in the very beginning of your landlord-tenant relationship. Define the rules and your expectations VERY CLEARLY and HOLD STRONG to them!
The first time they call and tell you why the rent is going to be 5 days late, explain exactly what it’s going to cost them and why. Do not come off of your late fees even a little bit, especially early in the agreement. YOU MUST draw the line in the sand with them and stick to it, or they will walk all over you. Once a tenant understands what paying late means, they will stop putting you behind other bills. They will miraculously start figuring out a way to pay you on time. They will continue to test you throughout the lease just like kids test their parents…don’t waiver!
This philosophy has drastically changed tenants’ mindsets about the way they pay us every month. We have given too many tenants the benefit of the doubt over the years and have learned from our mistakes.
Set the expectations early. Hold your ground when they try to change the deal. Now you can sit back, relax, and enjoy the asset you’ve added to your portfolio.
Now, you’re managing the property instead of it managing you!
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Patrick Riddle:
Dusty Keefe:
This very timely. My wife and I have owned one rental property and we are planning to acquire many more. I agree that expectations must be clear upfront and emotions cannot be a part of decisions with tenants. Our company has policies and we must adhere by the policy. If the policy states that you must pay a late fee then I have no choice but to charge a late fee because this was understood in the beginning. This post should be shared with all landlords.
Thanks,
Randy
http://www.nlightenllc.com
“Solutions for Real Estate”
Thanks for the comment Randy!
You’re right saying that emotions can’t be involved. I’ve heard sob story after sob story. It is not always easy to stick to the contracts though.
But every break we’ve given a tenant comes back in the form of additional excuses and a mind set that they can get away with it again.
Make sure that your tenants don’t know you’re the owner. It makes it a lot easier when you are just working for the man and have to collect on them regardless of their story. You are not the decision maker so it’s not up to you.