Mistake #1: Not screening tenants thoroughly. Do a credit report and call employers and past landlords. If the employer doesn't answer the phone with the name of the company, be suspicious. Not only should you call the present landlord, but also the prior one. Landlords have been known to lie just to get rid of a bad tenant. If you are not certain that the person you are talking to is really the landlord and not just a friend, look up the owner of the property on Nite-owl to see if they match.
Take a deposit and then don't give them more than a few days to come up with the balance of the first month's rent. In the meantime, don't take the ad out of the paper or stop interviewing other prospects until you have all the money and the lease signed. Just because you have a $100 deposit doesn't mean you have a deal. People will walk from a small amount of money. Only accept cash before they move in - no checks. If you decide to take part of the money, (which I don't advise) make sure you take all of the security deposit and let them owe you rent. That way, if they move in and don't pay, you can start an action for non-payment of rent. Just try to get them out for non-payment of security.
Mistake # 2: Not starting legal action soon enough. When a tenant doesn't pay, don't listen to garbage like, "I'll pay you next week." Send the three-day notice right away. I have found that the printed word is much more effective than the spoken word. Tell the tenant that you are not going to start the eviction until the date they say they are going to pay, but you must serve the three-day notice just in case they don't. By the way, I usually tell the tenant that I have a partner who is mean (good guy, bad guy routine).
Mistake #3: Accepting partial payment. You have to stop the eviction if you collect anything. Are you sure you want to do that? Unless you are desperate, I'd advise against that. Then you have to serve them with a new three-day and start all over.
Mistake #4: Not using an eviction attorney. Talk about being penny-wise and pound-foolish. The system is geared to favor the tenant but if you cross all the T's and dot all the I's, when you get to court, it's usually a slam-dunk. It is impossible to do this right yourself. If you make one tiny mistake, you have to start all over again.
Mistake #5: Not keeping a paper trail. When dealing with tenants, picture yourself in front of a judge, having to defend all your actions. Don't rely on phone calls - write letters and send them return receipt requested.
Mistake #6: Wasting time interviewing. On your voice mail, give the address of the property and have them drive by. Leave the blinds open so they can see inside. Have a "renter's convention" when you are interviewing. Set a time for all of the prospects to see the inside of the house at the same time. Then, arrive 15 minutes late. There is nothing like a little competition to make people freak out.
Mistake #7: Making your rent due on the first. Mine are due on the 25th of the previous month and late on the 1st. I don't want payments on the 5th or later. I want to avoid having to come out of pocket to pay the bank.
Phyllis_A_Rockower
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