What percentage of tenants are good

Question

Marcia Maynard · Answer

I'd say the percentage of good/mediocre/bad tenants is proportionate to the percentage of good/mediocre/bad landlords. A good landlord can sometimes turn around a bad tenant with skillful management techniques, and/or will avoid renting to them in the first place.

Tenants learn from how they are treated and from what they are held accountable for. Tenants are more likely to perform well, in a manner consistent with "good" tenants if they are treated with respect and clear communication is established from the beginning. Remember the line from a commercial years ago... "Don't let a good boy go bad, take the keys."... reduce the temptation for tenants to sway.  Guide tenants by being fair and firm, friendly (or at least cordial) and flexible (if the situation warrants, for the greater good). Address problems swiftly and know when it's possible to save a tenancy and when it's best to let one go.

Often, good tenants gravitate towards well kept properties with good property management. Often, bad tenants gravitate towards run down properties with bad property management. What you put out into the world tends to come back at you!

Dawn Anastasi · Answer

I would say that probably 75% fall into the good category, 20% being mediocre, and 5% (or less) being nightmares.  I think in general most people are good.  It's that handful of bad tenants that scare away potential landlords and those are the stories you hear most about, not the majority of the "boring" tenants.

David Dachtera · Answer

People pay rent from their income, rather than from their savings.

Be careful about those statistics, also. A lot of them are skewed since the crash and since the banksters slashed and burned consumer credit.

David J Dachtera

"Success is not a destination. Failure is not an event. Success is a process, failure is a choice."- DJ Benedict

Sarnen Steinbarth · Answer

I have had around 400 tenants and 2 owe me money.

5-10 have been not the most fun to deal with.

So I guess I would say around 98% good.

.5% I really dislike and am actively trying to collect from.

Nada Mohamed · Answer

Hi there,

I tend to think of tenant issues a little differently, almost like parenting. Not all kids have the same temperament/behavior, and you will have to parent differently with each to get the same result (good behavior), it is very similar with tenants. Of course, location is a huge factor, but you should not have to invest in uber costly areas just to get reliable tenants - that is less money in your own pocket. All tenants have the potential to be good tenants (except for a very, very, small percentage - the ones you knew in your gut when you accepted that you should not be accepting) - all you need is a firm, yet friendly manager, and a very well written legal lease agreement. With my own tenants, knock on wood, I am at 100% "good." Now, some are better than others, but I am having no particular issues at this time. Last year I was at 98%, and that was not because someone was non-paying - I have never had a non-payment of rent thus far in 6 years - I received every rent due to me from this particular tenant - but I felt that I had to threaten him with eviction one too many times, and he had an attitude - and was so demanding - that is what made him less "good." But even at that, he took the situation very seriously and made payments merely a few days later than final deadline with penalties and left the home immaculate upon leaving. Good landlords will get good tenants - get a good lease agreement (written by an actual lawyer) and be super firm and consistent, but understanding as well. Best of luck!

Nada

Matthew Paul · Answer

Poor screening equates to poor tenants

Michael Noto · Answer

Pretty simple the way I look at it.

The amount of deadbeat tenants you have will be directly corollary to the type of areas the properties you own are in.  Buy in good areas you will attract good people if your units are clean and the properties are well taken care of.

Kristopher Windsor · Answer

I just checked the rates at my bank, it is .01%. Why would I keep a savings account that earns $5 / year? So I don't. But I have $5,000+ in my checking account. Other banks will pay ~1% interest, but I'd rather get 2.5-3% in bonds. Savings accounts just don't make much sense these days.

Aly W. · Answer

I've had mostly good tenants over the years. Those that went "bad" had a major life event they could not recover from - job loss/rental assistance loss.

A few of those were good, in that they let me know up front they were in trouble and I agreed to let them out of the lease, no penalties. Then there were a few who never told me what was going on, had to be evicted, and left damage. You just never know how someone will react when their life goes off the rails.

Dawn Anastasi · Answer

This is true, I know of at least one landlord who rehabs to the bare minimum, or leaves places dirty and falling apart, then gets only the types of tenants that will rent those places. Those with evictions or other issues.  Then he collects rent for as long as he can, and eventually evicts the tenants when they don't pay.  I don't know how that's a good business model.

What percentage of tenants are good

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