Types Of Bankruptcy

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April 18th, 2005

“Get Your Tenants To Help You Maintain Your Investment”

Working With Tenants (Continuing Series)





Your tenants should be responsible for replacing the heating/cooling system filters, maintaining the lawn and landscaping, snow removal, etc.





The tenant must notify you immediately of any major problems that need repair.





Tell the tenant that any extra appliances like refrigerators and washers and dryers are there only as a convenience, they are strictly “AS-IS”, and you take no responsibility to repair or replace them.





The key to avoiding vacancy and related problems is to have good, long term tenants. Try to get them attached to the house. Encourage them to work on it. Offer to supply the materials if they want to do some worthwhile improvements to the place.





If you are paying for part of an improvement, never allow them to deduct it from the rent. Get copies of the receipts, and then write them a separate check. This is much better from a tax standpoint.





You can also tell them that when you are ready to sell, you will give them the first right to buy. This would be good for you because you would have no vacancies, real estate commissions, etc.





The goal is to create a psychological attachment between the house and the tenant. The tenant will take much better care of the house if they think it might be theirs someday.





You should drive by the house frequently, and go inside to check at least every 3-4 months.





Try to make fairness your guide in dealing with the tenants. Enforce your rules strictly, but treat them with respect. Once they know your position, they will be unlikely to break the rules, because they know the consequences if they do.





NOTE: After my, admittedly, hard nosed attitude toward renters in my article last week, I got several comments from readers. They wanted me to make sure that I considered the tenants rights in this two way transaction.





I agree with them… there are many unscrupulous landlords in the world today and many tenant victims of their heavy handed policies.





It probably isn’t necessary to add to my comments that you should follow the golden rule when dealing with tenants… treat them as you would want to be treated. Don’t let them steal from you, but treat them fairly, openly and honestly and demand the same treatment from them.






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