7 Ways To Be A Happier Property Manager
First, remember to our tenants we're always the property manager and never the owner/landlord. Okay……... In more than 6 years and dozens and dozens of tenants, I've never had to go through with an eviction. One time I had to start one, but as soon as I notified my tenant she agreed to move out (this just happened last month, which is why it's on my mind and why I'm writing about it now). Some people would say that I've been lucky, but it's because I screen my tenants very thoroughly and I'm very strict with who I let into my properties. What most people fail to realize is that 99% of tenant problems can be eliminated during the screening process (if you screen the deadbeats up front, then they can't cause you problems down the line). So, here are some of the things I do to make sure I only get quality tenants:
1. It all starts with the application. Make sure that the application is 100% filled out. Also, get a copy of the person's driver's license and ensure that the name on the license matches the name on the application.
2. Get copies of the persons last 3 months pay stubs. Call their work and verify that they do indeed work there. Ask their supervisor if they've had any problems and if there are any reasons they won't remain employed for the next year. Also, use common sense. If you see the person makes only $2,000 a month and they want to rent a house from you for $1,500 a month (and they have no additional income) then obviously they can't afford to rent it.
3. Get their 3 most recent checking and savings account statements. If they don't have a checking/savings account, that's a major red flag.
4. Check their credit, their criminal background and see if they have any evictions on record. DO NOT skip this step. I prefer people who have a 600+ credit score and obviously no evictions or past crimes.
5. Call their previous two landlords. If your application says they are currently paying $1,000 a month, tell the landlord that you see they are getting paid $1,500 a month and see if they correct you…a lot of people give their friends as previous landlords.
6. I said this in number one, but I'm saying it again because it's so important. Check their driver's license and make a copy of it. This act alone will scare off a lot of deadbeats.
7. This one's optional. But if you want to be ultra thorough, go inspect their current place, so you can see how they live and how clean they are.
If you follow the above guidelines you will eliminate most tenant hassles. The biggest problem investors make is that they get greedy and just want money, so they let the first John Doe who fills out an application move into the house. Don't be greedy and you will be much happier down the line (and you will have loads of passive income because CASH FLOW=HAPPINESS).
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