Panicking

[Meg K.]

Hello BP,

I am not renewing my current tenant's lease after 6 years...lots of late payments, damage, and disrespect as i live in one of the units in the duplex.  I posted in postlets for new tenants and have been screening interested applicants...most people did not meet the 3X income, most have DDS/sec 8.  Let me say that this is a great house (Brick/Stucco/high ceilings/original wood floors 1921 2-story house, huge DR, LR, Den, Molding on walls in DR and LR, ceiling molding in DR and LR, huge pantry--you get the picture) but it happens to be in an area that is not highly desirable.  As i mentioned I live in one of the units and I am worried I will not be able to find good tenants to move in Oct.4th...current tenants move out Sept. 30th...any suggestions?

Thanks, Meg

[JD Martin]

If you can't afford the place without the rent, you are in a bad spot, either because you need the money to supplement your income or because you can't cover the house note without it. If that is the case, you probably can't afford that house altogether.

If that is not the case, you should a) advertise everywhere, and b) continue to screen tenants. Why bother getting rid of the current 6-year tenants to get 6-month tenants with the same problems? 

One thing about REI, whether it is renting, flipping, build and sell, etc - you cannot panic or be time-crushed, because you will make bad decisions otherwise. The worst RE decisions I have ever made, and I had a couple of bad ones, were in conditions when I was strapped for time or money.