Find out 7 major mistakes accidental Landlords make that cost Big Moolah 1/2
Now today we are going to learn 7 costly mistakes that accidental landlordscan make and it will cost them big bucks. This is going to be a two part video,so let’s go ahead and get started with this. The number 1 costly mistake isgoing to be not completing a thorough background check for each applicant.
Not having the right tenant in your property can and will cost you thousandsof dollars and lots of headache and stress in the future. You definitely want tomake sure you do a thorough background check. Now what do I mean bybackground check. You need to do a national check of credit, evictions,foreclosures, broken leases. You also need to check their criminalbackground, previous addresses where they’ve lived before and alsoemployment and previous employment on each applicant that is over the ageof 18, who is planning on staying at the property. The 2nd costly mistake isgoing to be lease enforcement. Now these are a couple of questions for you tothink of and come up with answers in case in does happen to you. Now thefirst one is going to be: how do you deal with a tenant that is paying late ontheir rent. The second is: when do you start the eviction process or do youeven start the eviction process.
Make sure you have a good goal plan on whatsteps will be taken, if a tenant is in breach of a contract. Now the 3 rd costlymistake is going to be a securities deposit. You as a landlord need to take asecurity deposit on the tenant prior to them moving into the property. Atypical security deposit is going to be the same as the first month’s rent. Forexample, if you’re monthly rent is a thousand dollars a month, you want yoursecurity deposit to be a thousand dollars as well. Now that is only if thetenant has a good background check, like what I stated before in the tenantscreening check with the evictions, broken leases, credit scores and etc.
Aslong as everything is fine, they can pay a thousand dollars security depositplus a thousand dollars rent upfront to get the keys to the property. Now ifthey do have some blemishes on their credit score or evictions, orforeclosures you have the option to ask for a double or triple security depositprior to the tenants moving into the property. Now again this is three of theseven costly mistakes, so stay tuned for the second video while we go aheadand go through the other costly mistakes, which could save you thousands ofdollars. Again my name is Edwin with Plugin realty, you can contact usdirectly at 1-888Plugin-8 you can also visit our website atwww.pluginreality.net. Thank you!