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Until they stop paying rent and trash the place and squat and sue you for any imperfection such as accidental loss of heat in the apartment, while simultaneousl
by anoncoward111 8y ago
Until they stop paying rent and trash the place and squat and sue you for any imperfection such as accidental loss of heat in the apartment, while simultaneously not letting the boiler repairman in the house.
- thrower123 8y agoWell, it helps if you put a little effort into renovating the place, so that it attracts a different type of clientele and prices out the riffraff.
- anoncoward111 8y agoAgree, but unpredictable things do happen either way and more importantly, you need to have immense operating capital and cash flow to bring in the top of the market. I for one could probably only afford to be a landlord of a 250-400k property here in NY, not a 700k one!
- thrower123 8y agoVery true, stuff is going to happen, and you've got to scramble to get it fixed. I would imagine NY would be tough, I'm in an area where COL is probably half, maybe one-third of NYC, and expectations are considerably lower as well.
- justaj 8y agoCouldn't that be covered with a decently written contract though?
- willio58 8y agoThat and taking the time to actually interview your applicants thoroughly.
- anoncoward111 8y agoCant collect damages if the tenant is flat broke :/
- jakobegger 8y agoYeah, that's the problem. Tenant stops paying, illegally sublets the place, then disappears, and by the time you finally got their stuff out you've lost a year of rent and had to pay their utilities. It's not that common, but it's a possible outcome, and a contract won't help even a little bit.
- jaworrom 8y ago1. Invest in pro-landlord states. I know plenty of investors that haven't even walked the properties they own and invest out of state without issues. 2. Interview potential tenants and verify income, rental history, references, credit check, background check, etc. 3. Have a strong lease agreement that outlines all of this. 4. Account for vacancies every month as an expense - 3-5% is pretty reasonable. And don't touch this money.
- jaworrom 8y agoFor every story like this, there's a hundred success stories. While real estate is hardly passive, I enjoy outperforming the stock market year after year with cash flow, leverage, and appreciation. Strong lease agreements, property management, and vetting the right tenants will avoid 99% of these issues... but you can only do so much to prevent these issues from arising. I account for 3-5% vacancy every month as part of expenses and don't touch that money for this very reason.