Daimien Patterson is the CEO of Integrity Property Investment, a property investment company based in Australia. He regularly produces books, blogs and videos on the topic of property investing, helping thousands of people create financial security and freedom through education and property investment. Get started today.
My Property Investment Tip #16
How To Avoid Bad Tenants
Ever had a bad tenant? Can be enough to put you off investing in property for good.
But it shouldn’t! Because:
A. Then you lose and don’t make any money; and
B. Because they are very easy to avoid!
It was probably just because you weren’t aware of some very simple rules you can follow to avoid them. Bad tenants that is!
Firstly… understand your enemy!
Bad tenants have two characteristics:
1. They lack respect for the rules they agree to, and
2. They lack respect for other people’s property (namely your investment property)
If these people have these problems, you can guarantee that it affects other areas of their life too, like their work; and they’re probably not in a very highly paid job.
If you stay away from the cheaper areas, you’ll stay away from 99.9% of bad tenants.
Also don’t allow share renting where several adults all pitch in together. This is just another way a bad bunch of tenants can pool their resources to sneak into your property.
Then! Make sure you have hardcore property managers who both love you to bits (so they wouldn’t dare let a bad tenant into your property) and have the forensic ability of CSI expert! (So they can thoroughly check the prospective tenants out).
Once your tenants are thoroughly screened and allowed in, then make sure your property managers inspect them a soon as reasonable once they move in.
They need to be checking that the number of adult and children’s beds correspond with who’s on the lease, and that the place is being kept immaculately.
If not, breach their arses straight away so you can get them out of there ASAP if they don’t fix it up.
Then in the absolute worst case scenario make sure you have landlords insurance. That’s what’s it’s for.
For the record I’ve never had a bad tenant. Ever.
Follow theses rules and you won’t either.
Incidentally, if you have a property in the greater Brisbane area, and you need a decent property manager, let me know as my team of black belt property management ninjas can take care of it for you.