Rent Wrong Person? (SEO Key) word_
Rent Wrong Person. I wanted Sales Prevention Program #81 Rent To The Wrong Person to post this today as it was a recent event.
Renting to the wrong person can be costly, and cost you a sale. For this reason often the wise thing to do to use a professional rental company to manage your property. I will post one I trust, RESE Property Management, on the main page of this site.
The story is simple and the consequences costly. The owner in this story rented his nice home in Salt Lake City. He had a garage that was behind the home and really not visible from the street. The deal was that the garage was off limits to the new renter, it was full of valuable tools that he didn’t want messed with.
He decided to sell and was able to put the home under contract. The lender’s appraiser went to the home one early morning to do his research. When he opened the garage there were three sad looking men in sleeping bags. Nothing else was in the garage. All of his valuable tools were gone.
What turned out to be the facts is that the renter had sold off the tools, was renting the garage to each of these men, who were druggies, for $100.00 per week. He was taking in more than he was paying.
I don’t know how much research the owner did in approving this renter. I don’t know if he ran a credit report on the guy, or even a criminal report. I don’t know how often he went back to the property to inspect it. These are the types of things management companies do. The one I prefer,Rese Property Management has an interesting business model. Instead of hiring one full time person to manage numerous properties, they hire semi retired professionals and give them a smaller portfolio of homes to manage. This way he can get the services of high quality people and pay them enough per hour to have them appreciate the income. These managers are limited in what duties they are asked to perform. This way the employee is able to stay closer to the renters and the units. They have the time and the responsibility to regularly do physical on site inspections.
I quote this from their website about their approach: This solid foundation provides us with the platform from which to deliver an ever improving property management solution through a group of people who are converted to our distinctive business philosophy.
The goal of saving money by self management often turns out the way this story did, with a bad tenant, doing bad things, with savory people, with drugs, and as in this case going full out to avoid being evicted. Not a good story. This story muddies the sale of the home, and possibly has caused it to fall apart. F
I wonder how many of my readers are considering owning rental properties. Some people have mentioned they are concerned about having their money in the stock market. I have thought long and hard about how to answer folks, who ask my opinion. It is just an opinion but I do conclude that owning rental properties is a safer investment for those who do worry that the market is over valued and risky. However, this story illustrates a risk in owning.
Sales Prevention Program #81 Rent To The Wrong Person
SEO KEYWORD: Rent Wrong Person