Calling all (successful) Low income (class C / D) investors
New Haven, CT · Member since 2016 · 39 posts · 48 votes
Calling all (successful) Low income (class C / D) investors
Most Popular Reply
#1. Don't be a slumlord. Get to know your properties and get the properties in good repair before you rent them:
Make sure the windows are functional, safe, clean, and have window treatments. (Clean the window sills too) Old windows often need to be re-roped, make sure the locks are functional, make sure they open and close. Make sure you have screens and storms.
Paint or wash the walls if recently painted. If the trim needs to be painted, use joint compound to smooth out rough edges from multiple layers of paint. Choose modern colors.
Clean carpets (we are moving away from carpet all together). Replace worn flooring.
Make sure the appliances are clean and functional (and match!)
Make sure all built in cabinets, cupboards, and drawers are clean and empty
Make sure the bathroom fixtures are clean and functional (run the water and test every drain). Flush all the toilets.
Check all the outlets and make sure the plugs stay in and that the outlets are functional (note any switched outlets)
Test the smoke detectors
Replace batteries in digital thermostats
Make sure all light fixtures are working (we replace bulbs with leds).
Make sure there are thresholds and not rough flooring edges.
Make sure the HVAC system is functional.
At your move-in walk through: show your tenant where the breaker box is and how to reset a tripped breaker.
If you have old triple track or double track storms, show the tenants how to operate them.
Show tenants how to relight the stove pilot light.
Test the smoke detector in the tenants presence and show them how to replace battery if not a sealed unit.
Show the tenant how to operate the thermostat.
Remind the tenant to use the bath fan or to open the bath vent window.
Point out the clean stove and fridge (and snap a picture) and let tenants know want them back in the same condition.
If you do these things it will drastically cut down on your maintenance calls. It will be clear to tenants (just from having clean windows and appliances) that you care about and maintain your properties.
Extras:
If the cabinets are decent but tired-- refinish them and add new pulls. I trained a tenant to use the rustoleum cabinet transformation kit and it looks great and holds up well and makes a huge difference! and helps you rent FAST. For less than $100 you can transform a kitchen.
Your property may be in a C or D neighborhood and it might not have all the modern ammenities but if it is clean and well cared for it shows! Tenants appreciate good value at every price point-- and it's hard to find at the low end of the market. I own and manage properties in B- through D neighborhoods.
96 Replies
- 7yBryan MitchellPro MemberRental Property Investor · Columbus, GA · Member since 2016 · 634 posts · 337 votes
@Latisha Douglas, it’s business. If you can not make a decent profit, then everyone loses.
- Rental Property Investor · Canton, OH · Member since 2017 · 1k+ posts · 1k+ votes7y
@Latisha Douglas
Hi Latisha,
I haven't been doing this very long, but all my doors are C class areas for the most part. One thing I've learned from seasoned investors is "training your tenants so expectations are set...and clear." Break their bad habits! As far as systems and other things go:
1. Find a good handyman for things you cannot repair yourself. It's a great feeling when you can simply text a repair to someone you know who will fix the issue correctly and do it at a fair cost.
2. I use Excel for tracking expenses...which track back to my Excel P/L.
3. Don't have a bleeding heart. You will hear every excuse in the book from tenants. Treat your properties like a business. Late payment means they get a 3-day notice (or whatever is legally required in your area).
4. Don't skimp on repairs. Keep the properties in good repair and you will have less calls. When someone moves out, use that as an opportunity to fix things...and possible raise rents.
5. Make it convenient for tenants to pay rent. I use Venmo, good ol check in the mail, or they can deposit rent directly at my bank.
6. Listen to the advice of people. Attend REIA meetings, talk with folks on BP, talk with mentors and learn.
- Rental Property Investor · Saint Louis, MO · Member since 2019 · 5 posts · 1 vote7y
@Latisha Douglas
Stay away from section 8 and let someone else handle the rental processing. Find someone off red door marketing to market your property and do more background checks to insure they are a good tenant.
- Rental Property Investor · Saint Louis, MO · Member since 2019 · 5 posts · 1 vote7y
@Latisha Douglas
Stay away from section 8 and let someone else handle the rental processing. Find someone off red door marketing to market your property and do more background checks to insure they are a good tenant.
- Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes7y
Originally posted by @Latisha Douglas:
My issue with my section 8 tenant isn’t with her $30/month portion. It’s the water bill (which legally has to be in my name) that is not being paid- at almost $200/mth!!! My next tenant Iay just raise the rent and include water. Having them pay is too much of a hassle. Just another bill that doesn’t get paid with no consequences bc it’s takes yearssssss for them to shut off the water on youI usually cover as many utilities as I can, provided I am reasonably compensated and remain under or at the HUD rent cap. Here power is cheap, water expensive, but rent is always higher with provided utilities.
Along these same lines, I offer discounts for paying on time vs late fees for not. It is both a carrot mentality and higher contract rent. Instead of a $30 late fee for instance, I'll have a $30 higher rent but with a $30 discount for paying by the 5th with no drama. Everybody loves a discount.
Per day late fees apply beginning the 8th or so though. $8 per day on the 8th. Easy to remember and gets their attention. And for gosh sakes, no checks in the mail. Have them deposit directly into your biz savings account or online if they can. 'The check's in the mail' is a bad joke for a reason. Even if you provide addressed, stamped envelopes, performance will drop dramatically this way.
@Jonathan R.
I invest in C areas with blue collar, working class tenants. I have one Section 8 tenant that doesn’t work and her responsibility is $6/month of the $900/month rent. So, the $894/month is “guaranteed,” however I’m starting to see repairs for the past couple of months. It’s a little too soon to tell if it’s crappy rehab (bought this one from someone I’ve not dealt with previously) or tenant issue. If it turns out it’s tenant carelessness, my concern is the ability to force her to be financially responsible vs me as the property owner. I’m sure every state is different, but not sure if it’s pretty much a universal “you’re stuck (as owner) dealing with it/paying for it.” My guess is if your responsibility is $6/month, you probably can’t afford to fix anything anyway. If nothing else, I’m treating this as a learning experience. I do not self-manage and use 3rd party management.
- New Haven, CT · Member since 2016 · 39 posts · 48 votes7y
Originally posted by @Account Closed:
@Latisha Douglas
Hi Latisha,
I haven't been doing this very long, but all my doors are C class areas for the most part. One thing I've learned from seasoned investors is "training your tenants so expectations are set...and clear." Break their bad habits! As far as systems and other things go:
1. Find a good handyman for things you cannot repair yourself. It's a great feeling when you can simply text a repair to someone you know who will fix the issue correctly and do it at a fair cost.
2. I use Excel for tracking expenses...which track back to my Excel P/L.
3. Don't have a bleeding heart. You will hear every excuse in the book from tenants. Treat your properties like a business. Late payment means they get a 3-day notice (or whatever is legally required in your area).
4. Don't skimp on repairs. Keep the properties in good repair and you will have less calls. When someone moves out, use that as an opportunity to fix things...and possible raise rents.
5. Make it convenient for tenants to pay rent. I use Venmo, good ol check in the mail, or they can deposit rent directly at my bank.
6. Listen to the advice of people. Attend REIA meetings, talk with folks on BP, talk with mentors and learn.
Excellent. Thank you’ I just realized that even though I am tracking my maintenance for the year for all properties it not enough. I will start tracking per property per month so I can properly see which one is draining me.
@Latisha Douglas This will help you lots:
I noticed that your main issue with section8 is that they leave the property bad.
So what I would do instead of screening them, while they are applying to your property, give them a surprise visit at their home and ask them to go in and tell it is part of the process of applying.
If they don’t let you in/their house is filthy and bad - do not take them.
If their house is clean - take them.
The issues with people that leave properties in bad shape is that they are filthy and messy people, and I am a clean person and that mentality never changes, same with being filthy and dirty, so nothing will change.
This will help you a lot give it a shot.
- Rental Property Investor · Torrance, CA · Member since 2016 · 724 posts · 1k+ votes7y
Originally posted by @William Watt:
I do my investing a little different here in Alabama. I typically purchase a property in a tax lien sale in C areas which is in the 3rd year and means a tax deed is available at the end of that year. Yes you have to wait out the next 3 years for redemption but that is ok. Purchase 3 properties hoping one will not redeem, and do it again & again. I usually purchase a one acre property that is in the county and might have an old house on it. After a clean title is acquired I donate the house to the fire department (tax credit!!!!) and it gets burned down (in lieu of have it torn down or moved). I am left with about 3-5 dump truck loads of material to dispose of or which I might and have buried. If sewer is available I can easily rent out this one acre lot for 2 mobile home (not campers). With 2 lots I can afford to purchase the rights to connect to the sewage main.
Now I have a clean property with three thousand or so invested into, I rent the property out for mobile homes at $250 month. I don't own the mobile home so there are no repairs. It will typically cost the mobile home owner about $3500 to move and set up at a minimum, usually more. This way they are finically tied into the lot. Yes there is a septic tank that is of concern, but generally if the field lines are not grown over they will be ok. I prefer sewage over septic. I do not purchase small lots that require the installation of a septic system or purchase the right to connect to a sewage main, expensive as I want all my expensed paid for in 18 months.
No, $250 a month is not going to make me rich but I now have 14 in my two LLC's. All of these properties I purchase off tax sales so there is little money invested by me, definitely some time in waiting for a clean title. I do require the cost as a deposit for the removal of the trailer should they just leave.
Doing a back ground check is almost a waste of time as most all will have issues. I really check on items like bad credit, defaults ect, most all mobile home owner will have issues of some type in their life time. You just have to make your mind up each time you have a new tenant.
Welcome to slum land lording, but it work for me and have been doing it over 35 years and most of my original tenants are still with me. I paid for two college educations at the University of Alabama this way.
If you are really down and dirty, you could turn this one acre lot in to a small travel trailer spots, 4 per acre and after paying for power and water, clear $800 - $1000 a month. But you also purchase and pay for a lot of head ache, I think you would qualify for class "F" (ha ha) on this one.
This is genius
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Mark S.:
@Jonathan R.
I invest in C areas with blue collar, working class tenants. I have one Section 8 tenant that doesn’t work and her responsibility is $6/month of the $900/month rent. So, the $894/month is “guaranteed,” however I’m starting to see repairs for the past couple of months. It’s a little too soon to tell if it’s crappy rehab (bought this one from someone I’ve not dealt with previously) or tenant issue. If it turns out it’s tenant carelessness, my concern is the ability to force her to be financially responsible vs me as the property owner. I’m sure every state is different, but not sure if it’s pretty much a universal “you’re stuck (as owner) dealing with it/paying for it.” My guess is if your responsibility is $6/month, you probably can’t afford to fix anything anyway. If nothing else, I’m treating this as a learning experience. I do not self-manage and use 3rd party management.
expecting any money from most section 8 and especially those to 100% is wishful thinking at best.. simply will never happen they will take the voucher to the next landlord that is wants the Section 8 tenant and the assurance that rent is on time if they stay in the program
You asked for tips and tricks so here’s one that probably is going to sound completely crazy and very slumlord-like but I’ll post it anyways .when a tenant in these areas move out they usually leave the place a wreck and it needs carpets cleaned ( I use 68 cent a foot brown office carpeting ) and painted ( I use gladden generic semi gloss speedwall 16$ a can) what I do is go ahead show the property to a prospective tenant anyways and when they arrive I have a bottle of windex out a rag a broom and inform them I’m working on it . Then if they are still interested ... I make a deal with them that if they are willing to finish the work agree to clean up and paint and get the place back to good condition I’ll accept only half the months security deposit to save them money and get it how they like it . This has worked out well and I know a guy in my area that never plays Johnny handyman because of this !
- New Haven, CT · Member since 2016 · 39 posts · 48 votes7y
Originally posted by @Nicholas Vignati:
@Latisha Douglas
Stay away from section 8 and let someone else handle the rental processing. Find someone off red door marketing to market your property and do more background checks to insure they are a good tenant.
What is this red door marketing? I googled but it seemed like just a marketing company and not one that does tenant placement.
- New Haven, CT · Member since 2016 · 39 posts · 48 votes7y
Originally posted by @Dennis M.:
You asked for tips and tricks so here’s one that probably is going to sound completely crazy and very slumlord-like but I’ll post it anyways .when a tenant in these areas move out they usually leave the place a wreck and it needs carpets cleaned ( I use 68 cent a foot brown office carpeting ) and painted ( I use gladden generic semi gloss speedwall 16$ a can) what I do is go ahead show the property to a prospective tenant anyways and when they arrive I have a bottle of windex out a rag a broom and inform them I’m working on it . Then if they are still interested ... I make a deal with them that if they are willing to finish the work agree to clean up and paint and get the place back to good condition I’ll accept only half the months security deposit to save them money and get it how they like it . This has worked out well and I know a guy in my area that never plays Johnny handyman because of this !
Wow. Interesting. I definitely may start showing a unit before it’s fully rehabed/cleaned. Although I get a ton of interest from posting I only get a handful of good prospects. Takes a while to weed through the prospects.
The rest Of your process I have to think about. Lol
- Rental Property Investor · Saint Louis, MO · Member since 2019 · 5 posts · 1 vote7y
@Latisha Douglas
It is a company that handles marketing of homes and rentals. Let people do what they do best. If you find someone to do the tenant searching and processing it will make your life easier and save you time. It will give you more time to focus on the house and repairs rather than answering text messages, returning calls etc..
Originally posted by @Jay Hinrichs:
Originally posted by @Mark S.:
@Jonathan R.
I invest in C areas with blue collar, working class tenants. I have one Section 8 tenant that doesn’t work and her responsibility is $6/month of the $900/month rent. So, the $894/month is “guaranteed,” however I’m starting to see repairs for the past couple of months. It’s a little too soon to tell if it’s crappy rehab (bought this one from someone I’ve not dealt with previously) or tenant issue. If it turns out it’s tenant carelessness, my concern is the ability to force her to be financially responsible vs me as the property owner. I’m sure every state is different, but not sure if it’s pretty much a universal “you’re stuck (as owner) dealing with it/paying for it.” My guess is if your responsibility is $6/month, you probably can’t afford to fix anything anyway. If nothing else, I’m treating this as a learning experience. I do not self-manage and use 3rd party management.
expecting any money from most section 8 and especially those to 100% is wishful thinking at best.. simply will never happen they will take the voucher to the next landlord that is wants the Section 8 tenant and the assurance that rent is on time if they stay in the program
So you’re saying I should just continue to fix things monthly as a “cost of doing business” to be able to keep getting the “guaranteed” Section 8 rent?
- Miami, FL · Member since 2018 · 71 posts · 87 votes7y
This is a great thread for those like us that are involved in Long term rental investors! I developed a 100+ SFR portfolio in Detroit living abroad, that was very time consuming for me in terms of travels etc, but let's keep that part aside. My tips to "keep under relative control" all things:
1) Have a LOCAL team (don't try to reinvent the fire). Even more if you are a remote investor.
2) Give tenants a decent property in livable conditions. Don't expect sustainable long term tenants if you are a slumlord with leaking roofs that doesn't pick up their calls.
3) Develop your "in house" property management team. Yes! This makes sense when you achieve a 30+ property portfolio. All the Property Management companies I hired robbed from me (and I am into details. I stopped it on time and avoided them ruining my business). With my incompany team everything goes perfect.
4) Give tenants as many payment options as possible. Cash, checks, Money Orders, Debit Cards, Credit Cards, CashApp and centralize all this in a unique software (I don't know if I can post the name of the software without breaking BP rules so I will not do it).
5) Your tenants are your tenants, not your friends. We all have problems and relatives that get sick bla bla bla.
6) Keep properties updated. some general repairs will keep them happy.
7) Be strict and clear with your rental rules in your lease agreement. If you have a pet fee enforce it, if there is a late payment fee enforce it.
8) Don't ever accept partial payments when a tenants is late. Initiate eviction process asap.
9) Try to keep evictions as low as possible (I know is redundant with previous point but rehabbing a house post eviction can cost the rent of a whole year...or more1).
10) Be always aware that you owe a portfolio in a C/D class neighborhood. If you were owner of properties at The Hamptons or Manhattan you would have different issues.
ps: Never get discouraged by NOers, they are still on their couch running excels in their heads.
- Rental Property Investor · Providence, RI · Member since 2015 · 1k+ posts · 594 votes7y
@Latisha Douglas you’ve got to draw lines in the sand and have extremely clear expectations and consequences when tenants don’t follow through. Your going to have turnover, your going to spend money, but you will eventually stabilize.
Get a solid real estate attorney on board, and follow the letter of the law. If you need to spend a few bucks to make an example of someone, do it. Then go through the property and clearly define expectations for the new tenants. I am extremely selective on wiggle room, how much, how often, etc.
- Rental Property Investor · Big Sandy, TN · Member since 2013 · 147 posts · 91 votes7y
Have a lease and stick to it. Do not give an inch. This goes down the road of section 8 or rent. If they are $100 short this month it may very well be $200 next month. Always charge late fees. Dont leave utilities in your name. You will eventually get stiffed for a last bill.
I love section 8 and regular but if you give on your end it does not require the same understanding when its you taking too long to get something fixed. They will bail and move and you wont stand a chance in hell of chasing the balance. Any section 8 office will not care that you didnt charge a late fee.
- New Haven, CT · Member since 2016 · 39 posts · 48 votes7y
Originally posted by @Leo Furest:
This is a great thread for those like us that are involved in Long term rental investors! I developed a 100+ SFR portfolio in Detroit living abroad, that was very time consuming for me in terms of travels etc, but let's keep that part aside. My tips to "keep under relative control" all things:
1) Have a LOCAL team (don't try to reinvent the fire). Even more if you are a remote investor.
2) Give tenants a decent property in livable conditions. Don't expect sustainable long term tenants if you are a slumlord with leaking roofs that doesn't pick up their calls.
3) Develop your "in house" property management team. Yes! This makes sense when you achieve a 30+ property portfolio. All the Property Management companies I hired robbed from me (and I am into details. I stopped it on time and avoided them ruining my business). With my incompany team everything goes perfect.
4) Give tenants as many payment options as possible. Cash, checks, Money Orders, Debit Cards, Credit Cards, CashApp and centralize all this in a unique software (I don't know if I can post the name of the software without breaking BP rules so I will not do it).
5) Your tenants are your tenants, not your friends. We all have problems and relatives that get sick bla bla bla.
6) Keep properties updated. some general repairs will keep them happy.
7) Be strict and clear with your rental rules in your lease agreement. If you have a pet fee enforce it, if there is a late payment fee enforce it.
8) Don't ever accept partial payments when a tenants is late. Initiate eviction process asap.
9) Try to keep evictions as low as possible (I know is redundant with previous point but rehabbing a house post eviction can cost the rent of a whole year...or more1).
10) Be always aware that you owe a portfolio in a C/D class neighborhood. If you were owner of properties at The Hamptons or Manhattan you would have different issues.
ps: Never get discouraged by NOers, they are still on their couch running excels in their heads.
Please PM me....
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Mark S.:
Originally posted by @Jay Hinrichs:
Originally posted by @Mark S.:
@Jonathan R.
I invest in C areas with blue collar, working class tenants. I have one Section 8 tenant that doesn’t work and her responsibility is $6/month of the $900/month rent. So, the $894/month is “guaranteed,” however I’m starting to see repairs for the past couple of months. It’s a little too soon to tell if it’s crappy rehab (bought this one from someone I’ve not dealt with previously) or tenant issue. If it turns out it’s tenant carelessness, my concern is the ability to force her to be financially responsible vs me as the property owner. I’m sure every state is different, but not sure if it’s pretty much a universal “you’re stuck (as owner) dealing with it/paying for it.” My guess is if your responsibility is $6/month, you probably can’t afford to fix anything anyway. If nothing else, I’m treating this as a learning experience. I do not self-manage and use 3rd party management.
expecting any money from most section 8 and especially those to 100% is wishful thinking at best.. simply will never happen they will take the voucher to the next landlord that is wants the Section 8 tenant and the assurance that rent is on time if they stay in the program
So you’re saying I should just continue to fix things monthly as a “cost of doing business” to be able to keep getting the “guaranteed” Section 8 rent?
not telling you to do anything.. what I am saying is you can squeeze blood out of a turnip.. if you want section 8 in most markets your not going to get a dime out of the tenant other than the original security deposit. I have owned over 300 SFR's with the majority section 8 . I sold out.. end of that story.. far better things to do with that amount of capital thrown at a business.. And I am not interested in everyone's day to day drama.. But again I understand most investors Only real option is rentals.. so you take the good with the bad..
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Dennis M.:
You asked for tips and tricks so here’s one that probably is going to sound completely crazy and very slumlord-like but I’ll post it anyways .when a tenant in these areas move out they usually leave the place a wreck and it needs carpets cleaned ( I use 68 cent a foot brown office carpeting ) and painted ( I use gladden generic semi gloss speedwall 16$ a can) what I do is go ahead show the property to a prospective tenant anyways and when they arrive I have a bottle of windex out a rag a broom and inform them I’m working on it . Then if they are still interested ... I make a deal with them that if they are willing to finish the work agree to clean up and paint and get the place back to good condition I’ll accept only half the months security deposit to save them money and get it how they like it . This has worked out well and I know a guy in my area that never plays Johnny handyman because of this !
One of the turn key outfits I fund in Indy .. they do something similar .. some sweat equity.. along with start the carpets in a beige color then in every turn over they just progressively die them darker until they change them out.. cheap to die them.. you know some how these tenants just cant cross a room with out spilling their big gulp or their coffee.
- Professional · Parsippany, NJ · Member since 2013 · 384 posts · 262 votes7y
Sounds like my area of investment.
Payment is ALWAYS late = Send late notice. If they do not comply you can in some states File for eviction based on habitual late payments. This shall set them strait
Utilities not paid = not sure how this works where you are.
Constantly something that needs to be fixed = Some C,D tenants complain about stuff that need repair that is minimal and BS. If if is major like collapsed staircase, broken windows or anything the effect the Health & Safety of tenants then fix ASAP
Tenants not taking care of the unit and I’m responsible = Install cheap stuff like I do
Just had 2 section 8 re-inspections and there is a laundry list of items to fix = My section 8 units were all fully rehabbed. I assume your home is older in older condition. Regardless you need to fix that stuff ASAP or Section 8 will cut off your money. I hope you have replacement reserves (emergency repair) funds set aside for this stuff
- Investor · Gardena, CA · Member since 2017 · 445 posts · 398 votes7y
You need to stop, relax, think for a few minutes, treat it like it is a real business, lay down the law, say what you mean and mean what you say, be respectful to your tenants and give them a clean, quiet, enjoyable safe place to live.
That is all you need!
I told myself when I purchased my first apartment building that I would never let a tenant get me upset or emotional. That helps to keep my head clear so I can deal with tenant problems and remain logical. It helps me to make rational decisions vs. building hatred, anger and not wanting to deal with tenant problems.
The first thing I did was I sent every tenant a letter telling them how I was the new building owner. I never use the word 'Landlord'. In my letter, I told them we had to go over their leases and re-sign their lease, or we could wait until their lease ended, but it would be to their advantage to work with us, now, so we could clear up our expectations and ensure them we would prolong their tenancy. The next thing we did was we visited every tenant, told them how great the new changes would be and we asked them if they would be willing to pay an extra $100 per month.Virtually, every tenant agrees to pay the extra $100.
Our Lease Agreement is about 24 pages. It covers everything we can think of. We sit with every tenant and read every word on the lease so they know what we expect of them. When a tenant does something wrong we immediately send them a Notice To Comply. When they don't comply within 7 days we immediately evict the tenant.
When a tenant is late on their rent we give them a 3-Day Notice To Pay Or quit the following day. Every late tenants gets this notice and their are no exceptions. When a tenant tells us they will pay the next day they still get the 3-Day Notice. You have to do a little work to get the tenants to do what you want them to do. You can't be soft or lazy and give the tenants more time before sending notices.
After 3 days if the tenant does not pay their rent we will try to contact the tenant only 1 time and we contact our attorney and start the eviction process. Period! No exceptions! Everything is about business and following your own rules.
We have 3 large apartment buildings that are less than 2 miles from each other and one 11-unit property 8 miles from where we live. My wife visits every property every day. She know the license plate number and color of every tenant's vehicle. She know when guests claim they are only visiting, but are actually living in our units. She know what cigarettes tenants smoke and where they throw their butts.
Truth is! We have very few problems with tenants. We have to evict one tenant every 2 or 3 years through the courts, but they are always locked out within 7 weeks from when we contact our attorney. It is just a part of doing business and you cannot let yourself get emotional because one tenant stiffs you. When you have enough tenants evictions are an expectation.
The ways we reduce our problems with tenants is I spend a fortune to remodel every rental unit so I don't have to keep spending money on the same units over and over. It is the old, "either pay now or pay later" philosophy. We removed all the garbage disposers and that saves up a fortune for replacements and repairs. We removed all the swimming pools. We removed all the trees, shrubs, lawns, planted succulents and replaced the lawns with rocks. I had to think about removing the lawns for about 10 years and now it has turned out to be one of the best things I ever did.
When you have specific problems post your questions or send a PM and I will try to help you get your tenants in line and make managing them more enjoyable.
Post some numbers about the property and maybe you are making far more money than you think. Knowing how much you are making with both cash flow and equity can make you feel much better about owning rental properties.
How much did you pay for the property?
Down Payment?
When did you close escrow?
How many units?
Annual Gross Rents?
How much did you raise the rents since you purchased?
Mortgage Payment?
Property Tax?
Insurance?
Water?
Gas?
Electric?
Trash Removal?
Sewer Use Tax?
Property Management Costs?
Annual Repair Costs?
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