Learning Some Expensive Lessons...

[Sean Autry]

I'm 11 months into my first rental (triplex), and so far I've experienced: -2 evictions (inherited tenants) -a roach infestation -thousands of dollars in damage to one unit -likely more $ in damages to come Am I deterred from buying more? NO WAY. But here are some lessons I have learned: (1) I considered pest control when I bought the place, but went the cheap route and decided it wasn't necessary. BAD MOVE! Trying to save a measly $400/year or less in pest control is now costing me several hundred $ plus more vacancy time while the situation is rectified. (2) there's no room for sympathy. Bad tenants will come up with every excuse in the book to delay the inevitable- eviction. Come up with a strict eviction process and STICK to it. From now on, 3-days are sent the day after rent is considered late, eviction starts once the 3-day expires unpaid- no exceptions. (3) if inherited tenants are problematic and do not meet your tenant screening criteria, terminate the lease and replace them. Don't delay the inevitable. (4) collect the maximum security deposit. This will weed out crummy tenants and also give you more security if things go down hill. (5) perform regular walk throughs! You need to respect your tenants space and privacy, but you also need to make sure they aren't trashing the place. If we'd done quarterly walk through we would have caught the infestation before it was an infestation. (6) don't be afraid to bill tenants for damage that THEY have caused. Put it in your lease (if your state allows it; not even sure if mine does) that unpaid repair bills will result in termination of the lease. This way (a) you can avoid footing the bill on expensive repairs, (b) even if they don't pay- they are likely to continue to cause more damage so you can at least get them out and prevent further expense to you. I have a ton more to learn, but these have been my biggest takeaways in year 1. For the pros/veterans out there- I'd love to hear your thoughts on these. If you have anything to add, advise, suggest, or clarify- I'd love to learn a little more and avoid some other pitfalls.