In the world of landlording there are many things you must remember and the first is don't take any of it personally! It is a business and needs to be treated as such. You must remember that when they tell you their "stories" they are just that and the rent still needs to be paid!
You must also recognize good tenants and punish the bad. One of the reasons that people get out of the real estate investment business is mostly because of tenant headaches. It can become a bit like babysitting if you are not careful. Most investors allow the tenants to control the relationship and the tenants turn the owner's life into a nightmare!
You must start right off the bat with the rules and regulations with each and every tenant. You must explain to the tenant how your relationship together will work. They will respect you, the property and the neighbors and you will prove a safe, clean and well-maintained house for them to live in.
One technique we have used which has worked very well for us is that you don't tell the tenants that you are the owner, you tell them you are the Property Manager. Technically, if your house is in an LLC, you can say this without lying. This way if they ask for new rugs or something you are not ready to buy, you just tell them that you will have to talk to the owner and get back to you. When you go back and say the owner cannot do that at this moment, they will not get mad at you! Works like a charm!
When the tenants break the rules or at the first sign of them breaking the rules, you must deal with it quickly. This will set the tone for the rest of your relationship. If you carelessly enfoprce the rules, you will not have control of your tenants and it will continue this way until they move out.
You do not have to be unpleasant or speak angrily. Simply take a tough but fair attitude in all of your dealings with your tenants and you will enjoy years of positive cash flow!
Again, and in closing, treat them as a business – do not take what they do to you personally this is the biggest mistake landlords make and sometimes it is difficult to do. But if you can remain professional and take action when a problem arises then all can run smoothly.
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Nancy Geils, Owner Investing with the Stars
Nancy Geils and her husband Bill has been successfully investing in real estate for over ten years and has experience in wholesaling, pre-foreclosures, lease options, rehabbing, auctions, short sales, creative financing, and buy and hold investments. ancy is a native of Connecticut and graduated from Sacred Heart University before entering the corporate world with GTE as Marketing Specialist. It did not take her long to realize that working 70+ hours a week for someone else would not fulfill her dreams of helping others while at the same time designing the lifestyle she envisioned.
She currently owns a few businesses and is determined to provide value to other entrepreneurs while maintaining a successful investing career. She has trained with many of top experts / "gurus" in the world of real estate investing and is dedicated to bringing quality information to real estate professionals across the country.