I am a huge proponent of owning investment property (surprised?) and want to do my part to encourage others who are interested in the world of real estate investing. In this buyer’s market, I am beginning to get more and more inquiries from investors and have decided to create a post each Friday aimed at helping those who desire to purchase investment properties and or are already managing rental units.
Today’s tip applies to those that are landlords. Ah yes, you are no stranger to phone calls about plugged toilets or broken faucets. Being a landlord can be a fabulous experience or a frustrating battle. One of the keys to success lies in finding and keeping great tenants. When renting out my first home, an experienced landlord gave me a great piece of advise that I will now pass along to you. When taking applications from tenants always get contact information from the last two landlords. Instead of immediately calling the current landlord, call the one they rented from previously. Here is where you will get the real scoop on the type of tenants you will have to deal with.
The reasoning? If these tenants are a problem, the current landlord will tell you anything to get rid of them. The previous landlord will probably tell you the truth!
My experience — I put this tip into action when collecting applications for new tenants. One particular couple got glowing reports from the current landlord. “Yes, the rent is pain on time”. . .”Yes, they keep the place spotless”. . .”Oh, they are fabulous renters!”
What did the previous landlord have to say? Well, it seems this lovely couple had painted the entire house a very glaring shade of green and had taken it upon themselves to seal up a door from the living room to the kitchen and move it down a few feet! Not anyone I want to entrust my investment to!
Needless to say, even though this couple called me multiple times and begged for an opportunity, I chose to take a pass and find better renters!
Happy Friday and happy investing!
