Re: Question to landlords… - Posted by Tim (Atlanta)
Posted by Tim (Atlanta) on March 22, 2000 at 12:02:27:
From personal experience, the best way to reduce/eliminate late/no payment is to qualify the tenant up front. Check their credit. Check their references. Visit them at their current residence. Do all you can do to assure yourself that they will pay on time.
I would use the automatic deduction for convenience sake. If the money is not in the bank, there is no way to get it. Automatic payment or not. You will simply get a notice that the auto pay didn’t work this month. The auto pay is great to eliminate mailing delays and such. I would suggest that you get with your tenant and set up a schedule. Some tenants may find it more convenient to pay every two weeks instead of once a month. Think about it, if you are first in line when the paycheck hits the bank, you are more likely to get paid.
The majority of my tenant troubles do not come from late/no payments. You have to be willing to deal with many other problems. You may have to evict someone. They may trash your property in the meantime. You may have to paint a unit each time a new tenant moves in. You need to have a certain tolerance for these things, or they will drive you nuts. Some landlords just don’t like these things and quit. Only you know if you can handle it.
One last item : If you are depending on your tenants to make each and every payment on time, at some point, you will loose your shirt. Never buy a property without it having adequate cash flow. I have seen too many of my friends get into landlording without getting accurate numbers regarding vacancies and maintenance. Or they budget nothing for maintenance. Make sure you don’t fall into that trap.