Do you rent to contractors as tenants or not ? What is your tenant mix ?

[Joel Owens]

So with an apartment building I inherited some contractor tenants which now are leaving.

Downside:

1.Contractors income goes up an down.So one month they have rent and the next have a partial or want to do work for you.

2.They are hard to collect a judgement on as usually they don't have a bank account or have a job you can garnish because they work for cash.

3.There trucks and junk is usually all over the place making the units next to them hard to rent.(regular tenants do not want to have to deal with that).

A sticky subject I get asked on my commercial listings is tenant base.Meaning race and profile of the tenant.I can't comment on that because of fair housing laws but they can generally see from the names and go from there.

Just like people that tip at a restaurant it is a given that certain types on average give zero to a small tip.The same can be said for a certain tenant demographic that can be real demanding yet you have to pull teeth to get money from them.

I am not saying all are that way.Just saying with percentages it's often more the case than not.

So while it is a TABOO topic it is looked at in a buying transaction.