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How to Identify Tenants Turning from Good to Bad

We see everyday in more than one business, that customers can turn bad. It’s not unique to property investing. It is a fact of life, just the way it is. But one can avoid big problems if you know what you are looking for and the turn around if identified early enough.

Consider this, investors gets bonds for investment properties, then investors can run into financial problems. For whatever reason the investor couldn't pay the bond and the bank decides to repossess the property. Not nice, nonetheless, that is reality in some cases and even the best customers can turn into bad customers in a bad market due to unfortunate circumstances. For the bank a non-paying customer is a bad customer, just as a non-paying tenant is a bad customer to a property investor.

For the property investor, a non-paying tenant is a bad tenant, though as in our example that may have initially been a good tenant that due to unfortunate circumstances has turned into what property investors call a “bad tenant”. That does not make the person a “bad” person, but a problem tenant to the landlord or a problem customer to the bank in our bond example.

So yes, good paying tenants can turn into non-paying tenants. What you need is ways to identify changes that indicate problems. Here are a few instances that you may be able to easily identify:

  1. The tenants is avoiding you.
  2. Each month the rental is further delayed.
  3. The tenant complains about things that are not really a major problem and has never complained before about them (take for example a tenant that starts complaining about the neighbors dog, but has never done this before and has been living in your property for months).
  4. The tenant complains about things he or she knows you have no power to fix nor did they complain about this before (like the dog example).
  5. The tenant more frequently starts mentioning problems that he or she has.

All of the above, and much more, are indications that there is a problem. It does not matter what it is – it matters that it is identified early and solved. The tenant may be trying to find a way out or is in trouble and you may end up with a non-paying tenant.

These situations are easily identifiable early and must be dealt with swiftly before the issues turn into a major problem that will be much harder to fix.

In letting there are some very important, and often forgotten and unknown little tricks that can help you let your properties easier and with far less hassle than what most people experience. So in the next post we will give a few simple but very effective Tips and Tricks.

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Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved.





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Student Reviews

The Calculating Residential Deals course was excellent, outstanding, clear and very well presented. I can now see the difference between an investment property and a home ownership property so clearly. Jessica Huston  - CT.





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I would like to thank you so much for putting this course together and making it available to the public.  I have been selling property for a number of years and I still learnt so much from this course!  It is invaluable.  I highly recommend any Estate Agent to take this course to enhance their property knowledge even further.  Gina Hamlyn (Property Broker) - GINA HAMLYN PROPERTIES, KZN




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I would like to thank you for the Calculating Residential Investment Deals, I have also done the Letting Workshop and now that I think of it, I should have done the Calculating Residential Investment Deals first. For me it was a huge eye opener in residential buy to let. I have attended other seminars and what I found is that this course was the only one that was very helpful and full of actionable information to make the right decision when buying a residential property for investment. Michaela Nubert - JHB




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In life you come across all sorts of people offering to help you out, at a fee. Most offers just aren’t worth it and you leave feeling cheated. But once in a while someone comes along with something that’s value for money and exceeds your expectations; I found that in Karen and Sean Wheller when I did their Investor Letting Workshop. Their combined knowledge on the subject is extensive, current and PRACTICAL, they are passionate about property and teaching. I would not dream of getting a tenant in place without using their rental agreement.  - David Shadford

 
The calculating residential investment deals were really informative & easy to follow at a time that suites me. Being online meant one could always refer back if you missed anything or need for it to be explained again.  Very good in order to avoid burning you fingers when considering a new deal and making the right financial decisions. Steyn du Plessis - London




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What I derived from the course was the interaction with the other course participants, which one can learn from and also network with in the future. The course itself is an eye opener especially if you want to run with the letting process from start to finish yourself. The legal aspects I found very much as the most important part of the course.

The detail of the course also spells what to do on a step-by-step basis to reduce the letting process risk to a minimum though there is no guarantee that your investment will be looked after by the tenants. Ideas on where the letting market is and how to go about dealing with your tenant, was also of great value. The course however needed more time in order to digest the nutritional value of the workshop. Keep up the good work. -  Ebrahiem Kammies

 

 




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