With income property, your income depends on how well you manage your tenants. So it is in your best interest to perfect the art of finding and keeping good tenants. It’s usually easier to keep a ten-ant than to find a new one. If you have a good ten-ant, do whatever you can to keep them happy. As long as they are paying their rent, they are worth what it takes, within reason, to keep them there.  After all, they are buying your property for you.What more can you ask?

If a tenant leaves, you often have to repaint and fix the place up again before it can be rented back out. No matter how fast you are, you still lose a week or two in rent, plus the fix-up costs. It can be particularly hard when you are just starting out.  For this  reason you do not want to be a landlord for properties that are in what I call the “war zone.” If you don’t want to walk the neighborhood after dark, don’t invest there. If you do, you will lose. Property may be cheap, with great terms, but in the long run you will regret it. find tenants? We all know the common methods, newspapers, real estate agencies, and property management agencies. These work and are important tools, but they don’t always work quickly.

Referrals are a great way too, but there needs to be an incentive. If you have a vacancy, offer a discount on the next month’s rent if one of your current tenants brings in a new renter. Offer a rebate or kickback to property management agents if they find someone qualified to fill your vacancy. Find out what motivates people and try to use it to your advantage. It may cost you a little up front, but it is better than losing another month’s rent.

Get out yourself and talk to people. Stop in at near-by gas stations, post signs up all over. You may be surprised at how often you can lease to a relative of a neighboring property.  Stop in at local churches. Sometimes priests or pastors have a member wanting to join their flock. Offer to pay a “donation” to the church for a referral. I heard of a guy that filled up 50 properties over two years time, just by working with a church. It was a win/win deal. The investor filled his property and the pastor increased his congregation.

Qualifying Tenants All tenants are not created equal. In some cases, vacancy is better than a bad tenant. So how do you pick  good tenants? There is no magic formula. It takes practice and patience. But there are some steps you can take to minimize your risk.


When you check the credit report, always get a new copy. Don’t ever accept reports directly from the applicants. There is nothing wrong with asking for a $20 up-front fee to pay for a credit check. It helps weed out those who aren’t serious about renting from you. If they don’t want to pay it, you probably don’t want them anyway.

When you are calling on references, make sure that some of their current neighbors are included.  If you go out to talk to them, talk to a few others while you are there. Talk to their current landlord, but be careful. A landlord may say anything if they are trying to get rid of them.

Your main concerns should be:


As long as they meet those criteria, you shouldn’t have any problems. Just be sure to have them sign the rental agreement before they move in.  Never, ever let anyone move in without a signed agreement. If things go wrong, this contract is your lifeline. Try to get the best tenants. You may have to wait for the right one, but once you have them, do everything you can to keep them.
You should also familiarize yourself with fair housing laws in your area. You don’t want to be put in the position of discriminating unfairly or even implying that it is a possibility. The best way to protect yourself as a landlord is to know the laws and privileges that  govern both landlords and tenants.

Common Mistakes:
If you are prepared to be a landlord, you can avoid most mistakes. We all break down occasionally, so don’t expect perfection. Just try not to let things bother you and move on. Some of the most common mistakes are:


No matter what you do, you will be disappointed at some time. People won’t show up when they say, they won’t pay when you want them to. Everyone gets a tenant who trashes the place and breaks things. You can’t focus on the problems. You have to focus on your objective. If someone breaks things and damages the property, just tell yourself that you have the security deposit, and in 20 years, this property is really going to be worth something. And your problem tenant won’t be there to spoil it for you. He’ll be long-gone.

One of the biggest mistakes we see is a landlord getting mad at tenants for no good reason or over minor details. Why worry about a broken window or a stain on the carpet? These are easily fixed. In the long run, they will be forgotten when your property has paid for itself and doubled in value while still bringing in a consistent monthly income.

Another common mistake is not repairing problems promptly. If you consider how much effort it takes to find new tenants, shouldn’t you make every effort necessary to keep your existing ones? This means taking their concerns seriously and making repairs promptly. Do you like to live with dripping faucets or leaky plumbing? How about a stove that doesn’t work or air-conditioning that stops cooling in the hot days of summer? Put yourself in your tenant’s shoes. If it would cause a problem for you, it will for them. To keep them happy, get it fixed. If it can’t be done today, keep the tenants informed about when it will be repaired, and then follow through. Most people can put up with some inconvenience if they know what is going on.