Chances of getting bad tenants?

Question

What is the chance of getting bad tenants? Assuming you do good vetting and require one month rent security deposit plus first months rent all up front.

Ellis San Jose · Answer

That's an impossible question to answer.  However, the more stringent and methodical you are with screening & interviewing applicants they better chance you have of avoiding the bad ones.

Elizabeth Colegrove · Answer

@Brandon Arnett That is a super hard question. At first, I was going to say more likely in the beginning as you are learning and making mistakes. Which is so true... we made soooooooo many mistakes and had alot of .problems before we buckled down and really got our systems in place. Now with our 20 page lease we have gotten much better. That being said, we still have issues. Now it's just about numbers and probability. As we try new things and honestly just be in this business we are starting to run into issues just because of probability. Aka if this happens 1 in 1000 times and we have done it 1000 times we are hitting the issues :)

At the end of the day Real Estate is the best thing that ever happened to me. Without it I would never be in our current financial position.

Brandon Arnett · Answer

@Elizabeth Colegrove

Thanks for the response! I understand it’s very hard to guess but I was just wondering. My biggest concern getting into this business is bad tenants tearing the property’s up. I plan to use a management company, at least starting out so I know they will vet very well. ( and I will make sure they do) but I was just looking for an estimation... many management companies told me like 1-50 will be bad and tear things up and not pay and need to be evicted but I was wondering that you guys thought.