In A Rush To Rent

Owning rental units can be a great investment. Most consider it a passive income supplement while others consider it a main source of income. Either way, rental properties can be a very lucrative asset to your portfolio.

However, as with most good things, there is a downside. In many areas, it is getting increasingly harder to have non-paying and non-complying renters evicted in the event it comes to that. Adding to this problem, “seasoned” renters know this.

It is not unusual anymore to have renters occupying rental units from six months to a year without paying anything before they can be formally evicted. A lot of this depends on when the court actually gets to your case. This is due in part, to the number of evictions currently waiting to be heard. 

Obviously, this is a very big problem, especially for investors that owe mortgage payments they are now paying out of pocket. 

The usual statements to property management are, “get them out and get somebody else in there”  or “now that you manage the property, get it rented” without realizing, this may be what started this situation to start with, being in a rush to rent.

Certainly, it is understandable if the property is not rented, it is not producing income. The problem is, if you put unvetted renters in or don’t have a history on the Tennant, just because they currently have a deposit and first-month rent, does not mean you will get timely rent payments,  that may be all you get for several months to a year. So, what do you do?

To answer that question, start here. It is crucial to listen to your property manager. They deal with renters on a daily basis and can usually spot red flags from a potential renter right away.

Also, allow time for the application process and background check to be completed. While even these checks are not one hundred percent foolproof, they give you as the owner much better odds of collecting your monthly rent and staying out of court which can get pretty expensive. All while your property is making no income.

We as property managers know the importance of having your property occupied with paying and happy tenants. Ultimately, if your property is not making income for you, it is not making income for us so we do have your best interest at heart.

Johnny Harvill

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