I call this a game because if you take it too seriously, it will cost you your sanity. If you are getting into the rental business, all I would encourage you to do is to be prepared emotionally for things to not always go as planned. I know of no one who has spent any length of time in real estate to not have a horror story or two. You are dealing with people and, unfortunately at times, they’re problems. The reason, tenants love to make their problem your problem if you let them. So, like all games, it’s great to have some rules. That way you know how you can win. So here it goes:

Rule #1 - Don’t believe everything your tenants say.
Every story you can imagine has been shared with me over the years as to why so and so can’t pay the rent that month. Believe them at your own peril. While you may want to work with select model ten-ants who only have an occasional slip, that will almost always be the exception.

Rule # 2 - Enforce your agreements.
If the lease says its due the 1st and late on the 5th of
each month, make sure you put 3-day notices out by the 7th. Otherwise, you are inviting collection problems. Also, if it’s late, charge the late fees and threat-en eviction if they don’t pay. Markets certainly vary on rent collection. My advice is to stay out of the "war- zones” on long-term rental properties. They are difficult to manage. Turnover is hard, and the units end up getting trashed on an annual basis.

Rule # 3 - Screen your tenants.
Call on references. There are professional deadbeats out there that prey on inexperienced landlords. You should screen, check credit and even file credit report collections on deadbeat tenants for just a few dollars. It is an excellent resource at a very affordable cost.

Rule # 4 - Get educated.
Renting property is an art form. The more you know about "who to rent to" and "how to rent" subject.

Educate yourself on the rules of Renting techniques. Invest in a book or ten. After all, this is your business, and having good leases with good lease clauses will make you money. I highly recommend Jeffery Taylor. He is fun to listen to, and he really knows his stuff. Remember, it’s your renters that are buying your asset and assuring your retirement income. Treat them with respect, and you will have long-term tenants. It never hurts to have them looking out for you. Being a landlord does not need to be an adversarial relationship. Just treat them how you would want to be treated if you lived in the property. If you do, "would be" problems will never materialize.