Hi Friend,
I hope you are doing well.
The most important part about owning a rental property, is not the property, but rather the tenants that live in the property.
Having good tenants that live in your rental property can be a contributing factor to whether you succeed or fail as a real estate investor.
If you have bad tenants that live in your property, it makes your life as the real estate investor and landlord very stressful as you are constantly dealing with unnecessary tenant issues.
If you are a new real estate investor and you want to learn how to buy your first rental property, you must first learn how to find tenants. One of your goals as a new real estate investor is to find out how to attract the best tenants to your rental property.
Before you learn how to find tenants, let’s take a look at the two types of tenants. The bad tenants an the good tenants.
Bad Tenants
- A bad tenant is someone who does not treat your property with respect and causes damage to the property
- A bad tenant is someone who has no regard for the neighbours that surround your rental property. They may do things like leave piles of garbage on other people’s property, or have late parties at night which causes noise and disturbance to the people that live close by.
- This is also someone who has no intention of paying rent
- They will start conflict with you, the landlord.
- A bad tenant is someone who will make major alterations to your rental property without consulting you first (i.e.: change locks to the house)
- Bad tenants are generally poor communicators, and shy away or intentionally avoid communication with their landlord.
- Bad tenants breed and often bring other bad tenants to come and live in the rental property without your permission
- Bad tenants don’t have jobs or are underemployed for long periods of time
- Bad tenants feel that they are always the ‘victim’
- Bad tenants will also do nothing to change their current circumstances
Good Tenants
- Good Tenants treat your rental property with respect
- Good tenants often have the desire to buy their own home
- Good tenants repair minor things in the rental property on their own accord
- Good tenants pay their rent on time
- If they are going to be late with rent, they give you advanced notice of when they will be providing you with the rent.
- Good tenants are effective communicators. They express themselves well and stay in contact with their landlord.
- They give you the landlord, the occasional gift (at Christmas)
- Good tenants do not want to leave your rental property (if you have treated them well)
- Good tenants appreciate you
In part 2 of this post, I am going to explain in detail for you how to find tenants and how to ensure that the tenants you find are the good ones.
Happy Investing!
Neil Uttamsingh
ps: I am an experienced real estate investor and a Licensed Realtor. I help people like you purchase their first rental property everyday. If you are a new or experienced real estate investors and are looking to buy a rental property, send me an email at NEIL@FIRSTRENTALPROPERTY.COM and I will help you get started!
pps: If you live in the Toronto area, consider attending my FREE monthly real estate workshops titled Landlord Bootcamp For Beginners.
Great tenants are really important and the first step is having a great property that attracts great tenants. My properties are always the top 20% of the market and it just so happens my tenants are the top 20% as well. If you have a great property, you can choose which tenant you want to allow to live there.
Cheers,
E
GREAT post. Do your due diligence and always listen to your gut.