How to maximize your interest when dealing with bad tenants

Since this topic are really hot last night, I want to expand
it a little bit:

 

1.      
I like Sun Tze, the best war strategy is
to prevent war from happening. I admire 如风如梦’s courage, but
going to war with your tenant is absolutely the last resort. Any war will have
unwanted collateral damage for the good and the bad. Going to court with your
tenant will hurt you as well.

2.       How
to prevent war from happening:

·        
You have to check the applicant’s credit score,
absolutely no exception (http://www.ctcredit.net)

·        
The tenants have to stable income, I learn a
lesson from that couple, the husband is contractor, income is not stable

·        
Bad credit score is not necessary bad, multiple
collections are no no

·        
Avoid bad area, most of us are amateur landlord,
bad area always have bad tenants, it is not worthwhile to deal with those guys

3.       If
the tenant stop paying rents, you do the following:

·        
Tell them to move out at the earliest
convenience by avoiding bad collection record, other, they will not rent
another house in the rest of their lives

·        
Give them cash incentive to move out, 10-day,
15-day and 30-day rent payment to move out

·        
They have to clean the house like before they
moved in, otherwise, they will not see a dime of their deposit

 

4.       If
all those measures fail, we go to war.

 

My point is if you let delinquent tenant live in your house
for more than 1 month, you are not a good landlord, sell your properties and
invest in REIT. Landlord business a tough business, you should have a big
heart, life is short, don’t get angry and happy life.