What To Do When You Have A “Needy” Tenant – Tips For Real Estate Investors

What To Do When You Have A "Needy" Tenant - Tips For Real Estate Investors

If you’ve been a landlord for awhile, you know all about them. If you haven’t, get ready because they are coming… the NEEDY tenant. There is no way around them. It’s especially awful when they are otherwise a great tenant – pays their rent on time, keeps the property in good shape. They just constantly need that hand holding and EVERYTHING repaired… NOW!

And have you noticed that it isn’t big things they need to have fixed? Stupid stuff, like it’s -2° F outside and they are complaining that the heat is CONSTANTLY running. Well, yeah, subzero temperatures will do that! Then there is the “well I thought I saw a bug so you need to get the exterminator in here IMMEDIATELY.” Yes, you guessed it, there was no bug or they let it in and it’s one measley fly.

The problem for you as the landlord is that when you are constantly calling in professionals to check on these rather stupid issues it costs you money…sometimes a lot of money.

So in order to keep your budget within the budget, set yourself up to succeed before they even move in. How? Make sure that things like the above will be covered once, then there is a service fee. Make it clear that if there is a flood, overflowing toilet or an electrical issue, that is a serious emergency will be covered.

If you don’t have something in the lease to help you and are having issues with a current tenant, try talking with your tenant, or writing to them. Make it clear to your tenant that if you are called about a repair and it turns out to be a non-emergency, the unnecessary repair or treatment will be at their expense.

If you write to them, assure them that you are taking preventative measures to forestall any issues, but that if they insist on calling about a non-issue, they will be charged. For instance, in the bug problem call the exterminator scenario, tell them “we have a standing monthly service contract with ___ Extermination and we will be happy to call a technician if you discover any pests. However, if no issue is found then the service call charge will be your responsibility.” Then spell out what will happen if the bill is not covered immediately (i.e. it will be taken out of the rent amount first, with rent second as described in the lease or however you will be handling it.)

Be friendly. Be professional. Definitely be firm. Once that tenant has to held accountable for unnecessary service calls, they will most likely stop calling and being such a needy tenant.

What Is The Best Way To Invest In Real Estate In Denver

You live in Denver and want to get into real estate investing. So do you try to buy a multi unit building? What about a single family home? Your best bet is a single family home.

Less cost to get started

What Is The Best Way To Invest In Real Estate In Denver...You live in Denver and want to get into real estate investing. So do you try to buy a multi unit building? What about a single family home? Your best bet is a single family home.First and foremost, a single family home will cost you less to get started. The cost of purchasing a single family home is significantly less than a multi home unit, like an apartment building or duplex/triplex, etc. Beyond cost, for bigger buildings you would need special financing for multi units, as opposed to a typical mortgage for a single family home. The cost savings in that are big.

Multi unit property

Next, if you are purchasing a multi unit property the chances of buying all the multi units together can be challenging. This is especially true in a duplex/triplex property. If the homeowner in the other unit or units aren’t selling, you’re stuck with the challenge of trying to rent out a single attached unit.

Inventory concerns

Another plus to investing in single family properties is there is more inventory to choose from. Think about it, when you look online for single family homes, how many are available? A lot. Search for an attached unit or multi unit, and the choices suddenly get a lot smaller, which helps make those prices higher. Even in a buyers market there is more inventory of single family homes.

Preparing units for rent

Lastly, there is the cost of preparing multi units for rental, and the fact that you have a larger pool of tenants to choose from. Preparing several units for rental, updating, cleaning and repairing, can be very costly. Think about how much one home renovation costs and multiply it.

When you have a single family home, those updates and other expenses are less, even though the home probably has more square footage. Also, smaller multi units limit your tenant pool to singles, newly marrieds and so on. Renting out a single family home opens that pool of tenants up to families who may need more room than an apartment or smaller multi unit, but can’t or don’t want to buy.

If you are interested in learning more, give Tena D a call today to talk about your real estate investing options! 303-452-5853

Should You Get Into Real Estate Investing Now When the Market is so Hot?

Some say that getting into real estate investing when the market is hot is a bad idea. I disagree. Not only can you get into it without losing your shirt, but you should.

So why is it such a good idea?

Should You Get Into Real Estate Investing Now When the Market is so Hot?Well, think about it. Does everyone own a home? Of course not. In a hot market it is really hard for first time buyers to find an affordable property. They often get out bid on those that they can find. That leaves a large segment that still need a place to live.

Not everyone wants to buy a home

Often times those looking for that first home are doing so because they need a bigger space.
So how does that help you, the real estate investor with a single family home to rent? You have that bigger space they need. Since they can’t buy, they can rent. That means that your property will be in demand.

True too is the fact that not everyone wants to buy a home. That means more prospective tenants for you no matter the market.

Use a property management company

Now, as a smart real estate investor, you have a property management company working for you and they will vet prospective tenants and get your property rented in days and keep it rented for you.

So don’t listen to the naysayers. You can and should invest in a hot market. Help out those renters.

How To Find Real Estate Investment Properties In A Hot Market

Want to get into real estate investing but are afraid the market is too hot to get you a reasonably priced property? Well, there are some things you can do in order to find good, solid properties that aren’t over priced.

Have a Realtor help

Your best bet is to start by having a Realtor help you find good prospective properties. Be sure to ask if they are experienced in investment properties. If they do, they will understand your needs and they will be invaluable helping achieve your objectives.

Not only are they a good resource, but once you establish a good relationship with them they will be more likely to seek you out when a great property comes their way.

In fact, I work with a number of investors who have different goals and objectives. I let them know as soon as I find something that will fit their needs!

One resource can be foreclosure lists

It can be a bit hit or miss in a hot market, but foreclosures happen all over for varied reasons. Checklists for your area, which may require a subscription, can be useful and be sure to look for properties that haven’t been listed for long.

Look for properties in nicer neighborhoods. Once you find one or some, have your Realtor help you see the property. The caveat here is that they may not be kept up or may have been vandalized by a disgruntled owner or scavenge artists looking for anything of worth in a vacant home.

Finding a property in a hot market isn’t impossible. With some work you can start a profitable venture.

If you are thinking about working with a Realtor, give Tena D a call and we can get to know each other a little bit! 303-452-5853 

The #1 Way To Keep Your Renters Happy

You have one or more investment properties that you rent out. You’ve been lucky enough to find great tenants. They take good care of your property, pay their rent on time and aren’t a problem. The last thing you want to do is lose any of them as a tenant. So how do you keep your renters happy and staying?

Be responsive

The #1 Way To Keep Your Renters HappyThe best way to keep your renters happy is to be responsive to their needs. How do you do that?

Well, there are quite a few things you can do, starting with don’t let them go to voicemail. Pick up the phone and if you can’t, be sure to return their call soon thereafter. It’s called being professional. Being prompt in answering their questions, respectful of them and responsive to them.

Next, take care of any repairs promptly

That doesn’t mean dropping everything if they need some non-emergency repairs. It does mean that if they call you on a cold January night and say the heat is out, you do drop everything and get a repair person there to help them.

If they do request any non-emergency repairs or updates, do them in a timely manner. Don’t make them wait weeks or months. And be in touch with them to keep them in the loop. Even if there is a delay, knowing you care enough to let them know will go a long way.

Related Post: 3 Ways To Reduce Your Vacancy Rate 

If you do have a trouble or disruptive tenant, deal with them now

Letting a problem tenant get away with disrupting everyone else will lose you those good tenants in a heartbeat. Pay attention to complaints. Deal with it at that time. If the police have to be involved, get them out and fast.

Always be sure to respect the privacy of your tenant. They have a legal right to quiet use and enjoyment to their home. You may need to come in and inspect or repair something, but you should give them plenty of notice in the form called for in the lease.

If you appreciate your great tenants, let them know. Be responsive to them. Show them courtesy and respect and you’ll have them for a long time.

If you are looking for a great property management company in the Denver Metro area, give Tena D a call today! 303-452-5853