Attracting the right tenants

[Drew Walch]

So I own a 6-plex near where I live and all I seem to get is deadbeat new tenants.  I have had rentals for years and never had the issues I do here including the duplex I own literally next door. This is not a bad area, admittedly not great but not bad area. Until I owned this 6-plex I had one eviction in my career, since this 6-plex I have had four. This place was a dump when I bought it but I fixed it up cleaned it up and it is a nice good looking place.  My partner was the issue early on renting to people that did not have the money for a deposit but he thought would be able to come up with rent some how.  He still has the attitude that "this area" we have to take what we can get but that is absolutely not the case.  I know because I live very close by.  I do not let him vet the tenants any longer but the last tenant I got with a job, first months rent and security deposit quit paying and destroyed the unit before leaving.  How do I stop the cycle?  I do not have this problem at my other locations and I manage them all the same.  Is this just a circumstance of multi family?  

[Brian Garlington]

@Drew Walch

You need to start looking at Section 8 Tenants......I have them at a couple of my rentals and it's worked out quite nicely.....You're able to screen them the same way you screen anyone else....

Prescreen over the phone 1st! Adverise for them on GoSection8.com....and on Craigslist but do not place an ad that gives the actual address on CL......It can say the street the property is on but you want to prescreen with phone and email first BEFORE having someone see your property.

When the phone calls come in DO NOT ANSWER AT FIRST. Let them leave a voicemail.....you want to see how they come across on the phone as if this is someone that seems somewhat professional .

If it seems like they come across like they are OK, then don't call back....yet.....instead...text the following

Thank You for your interest in the property, There has been a lot if interest in the rental so before talking can I ask you a few questions?

1. What is the reason you are moving

2. How soon do you need to move

3. How many people would potentially be living at the property

4. Do you or does anyone who would be living at the property or visiting the property smoke ANYTHING cigars, cigarettes, marijuana, vape.

5. Do you or does anyone who would be living at the property or visiting the property do drugs.

6. Do you or does anyone who would be living at the property or visiting the property have a felony.

7. Do you or does anyone who would be living at the property or visiting the property have any evictions

8. Do you or does anyone who would be living at the property or visiting the property have any bankruptcies in the last 7 years

(If I get a yes, or any sort of slightly vague answer to questions 4-8 I will not even invite them to see the property, period) I also make sure that numbers 4-8 are in the ad explicitly stating that they need not apply if they have any of these circumstances. By re-verifying this via the text message i have something in writing so later on if their "uncle who was away for awhile" that they "forgot to mention" starts staying at the place for "just a few days and is a chainsmoker".........I can tell them,....this violates the terms of their lease. And yes there are PLENTY of Section8 tenants that meet all of this criteria, it's literally a matter of sifting through the BSers,...which leads to the background check.

I also place in the ad that there is a $35.00 nonrefundable background check that they will pay that will need to be done on everyone that is over 18 years old that would potentially be living at the property and I make sure they are OK with that in the text message also. A lot of the BSers will not even apply once they see that they will have to pay for the background check.

If everything is OK on all this via text message THEN I will have a phone conversation with them before inviting them to the property.....

I also generally do NOT do open houses because what if you're in the back room showing someone something and some other people show up and they are in the front room doing who knows what......

I will as a rule of thumb place the ad.....with the street but not the actual address......and when i eventually get to talking with the person I will tell them i am showing it at this time and at that time......which works best for you?.....Once they pick a time THEN everyone else from that point forward is invited for that time the other person picked......seems to work quite well in increasing the demand when 5 groups show up at one time for the showing.

Also if you can......at the end of the showing walk them out to their car and LOOK AT THE CAR..................the way their car looks inside and out is VERY representative of how they will treat your property............You will also be able to see who is "waiting out in the car" that they "forgot to tell you about" just to get an idea of who else would potentially be around the property.

Trust me you will have more potential tenants than you know what to do with and the rental income is basically guaranteed because the Housing Authority deposits it like clockwork directly into your bank account my friend.