How To Lose Money And Get Your Rental Property Trashed By Your Tenants

Want to be a complete screwup and lose your hard-earned money? Follow these 5 Rules as provided by Andrew Stefanczyk:

Rule 1
Choose the worst possible area. It is a fact that the location of your investment property will determine the kinds of tenants you will attract, and how much rent you can fairly charge.

Rule 2
Put the very best of everything in when fixing up an investment property. Luxury bathrooms, thick pile carpets, plasma TVs. Spare no expense.

Rule 3
Make sure you have absolutely no experience in making basic repairs. Not knowing how to fix electrical wiring, repair drains, and replace windows will cost you quite a bit of money down the road.

Rule 4
Do not screen your tenants. This may be the most important step to making sure you lose money as a landlord. Do not ask for or check references. Do not call previous landlords and ask questions like, Did they pay rent on time? How was the condition of the house or apartment when they left? Did they ever disturb neighbours with loud music or shouting matches? How often would you have to make special trips for repairs? Being as uninformed as possible about whom you rent to will make a huge difference and will increase the chances that you will get tenants that will trash your property and refuse to pay rent.

Rule 5
Make sure you have not learned about your rights as a landlord. Be completely unfamiliar with the eviction process to guarantee long, drawn out disputes with tenants. Most countries provide online information about tenant and landlord rights so avoid reading these.

We also recommend that you not follow any of these rules! They will ensure complete failure!

Article Author: Joshua Dorkin

Joshua has written 539 articles for us.
Visit Joshua's Website: http://www.biggerpockets.com/

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BiggerPockets.com was founded by Joshua Reed Dorkin in August 2004. An entrepreneur, web designer, real estate investor, and one-time realtor, Joshua was not satisfied by the online offerings of other real estate sites out there, and decided to build one himself. Mr. Dorkin's vision for BiggerPockets has helped to propel it into becoming one of the top real estate destinations online. His vision for the site and its future has brought national press attention to both Mr. Dorkin and to BiggerPockets.