Investing in Property:

What No-one Ever Tells You About being A Landlord

1. Your best deals could be the ones you don't do.
2. Be a good listener – you never know where your next tenant will come from.
3. Sometimes the best deal you can set up for certain properties is having renters stay there for free.
4. Sometimes you can help your tenants more than you – or even they – know.
5. Pay attention to background checks of prospective renters and give back the deposit (if you have to) to get rid of tenants who don't pay.
6. Don't blindly trust your property manager, and know your rights as a landlord. For good measure, drop in on your property for surprise inspections.
7. You can never really tell from their applications how tenants will live in your property.
8. Hire a professional to help you screen prospective tenants. Private detectives and other professionals have training and experience to obtain limited-access information for you.
9. Ask would-be tenants to show you proof that they have transferred utilities to their own account before you give them keys to the property you're renting to them.
10. Collect and update the emergency contact information of relatives from your tenants.
11. Watch, wait, and listen for unusual clues about high usage of utility services. The problem could be surprising and the solution simple.
12. As a landlord, don't ever be shocked by unusual tenant behaviour.
13. Use professionals to screen prospective tenants and avoid dire problems, especially when your rental property is far from home.
14. Listen to your own experience as well as to advice from successful investor/ landlords.
15. Be persistent about collecting rent on bad checks, even when tenants threaten bankruptcy.
16. Management companies will not manage your properties as closely as you will. Only you will check all factors and inspect your investment as often as necessary.
17. Employ creative and effective ways to get the attention of tenants who are delinquent in paying their rents.
18. Make additional money by charging extra for extras.
19. Know local tenant codes and you'll be armed with information you need to protect your interests as a landlord.
20. People on Social security for long periods can lose respect for themselves and others, and often don't keep your property in good condition. Rather, they think you, the landlord, owe them something, so they constantly ask for favours and don't pay their rent.
21. Try to prevent tenants from cutting corners and misusing amenities that could spark costly accidents.
22. Do extensive background and credit checks before giving keys to tenants. Accept only cash or a cashier's check for the deposit and first month's rent.
23. Find fair and inexpensive ways to deal with cultural differences of renters.
24. You can't please all your tenants all the time ... and maybe you shouldn't try.
25. Charge higher security deposits to cover cleaning costs and pre-qualify tenants.
26. You can make even more money from rental property by allowing tenants to have pets.
27. Never choose to overlook smelly situations – for the benefit of you and your next tenants.
28. Know the proper legal procedure to evict tenants before you start doing it.
29. Be prepared to patch lots of problems from the ceiling on down.
30. Always run credit checks on tenants before letting them move in.
31. Don't let bad experiences with tenants undermine the value of real estate investing in the long run.
32. Warning to first-time investors: Your tenants have radically different goals than you do.
33. Keep your eyes open for For Sale by Owner signs that can't be seen easily.
34. Research local real estate regulations and know property values in the area you want to invest in.
35. You can reap dozens of personal and professional rewards by going on a Real Estate Investors cruise.
36. It's never about the property; it's always about the motivation of the seller.
37. If you know the full history of a property, you can enhance both your confidence and your position during a buying transaction.
38. Sometimes you can get a fantastic buy simply by honestly helping someone who is having tough times.
39. Build a networking team and show appreciation when team members come through for you.
40. When it comes to trusting people, follow your gut feelings. Doing that can pay huge rewards.
41. You never really know which sellers will say "yes" to your offer, nor why.
42. With a little information, effort, and belief, you can own a duplex and pay less than what you currently pay in rent.
43. Modular homes may offer investors the best way yet to achieve no-money down rewards.
44. Schools and city services directly affect property values, so buy investment properties in desirable, well-serviced areas.
45. Never pay more than you think a property is worth at auctions.
46. Even when mortgage complications put up roadblocks, you can always find a way to get through the red tape.
47. Being friendly and open to new situations can lead to lucky meetings and lucrative deals.
48. Carefully decide what's "okay" with you when you ask for compromises on a deal.
49. Listen and consider offers carefully because good opportunities can keep knocking on your door.
50. Sometimes you can just be in the right place at the right time.
51. You can never predict who your buyer might be.
52. When a seller names a reasonable price, don't get too greedy. Closing the deal quickly can often be more beneficial than holding out for a lower price.
53. Dig deep into county records and look for properties that can turn into good deals.
54. Always maintain the courage to walk away from a deal. It's like the bus – even if you miss it, another one will always come along.
55. Some blessings come in strange disguises. Be open to them.
56. Keeping your mind open to new opportunities can pay off.
57. Sometimes you can find excellent deals in your own backyard.
58. Use credit card financing judiciously. It can save the day-and your deal!
59. No one keeps extra money around to cover repairs and emergencies, so put some of your rental income into a reserve account.
60. Make sure you understand what government agencies like the Small Business Administration require before starting to build your dream property.
61. Develop your borrowing power so you can move quickly on big deals that come your way.
62. Sometimes earnest money means nothing and sometimes it means everything.
63. Always add contingency clauses so your purchase agreements will cover special situations.
64. If you ever take back a second mortgage, beware of extenuating circumstances. You may have to be willing to lose your money.
65. During distressed property sales, add (don't subtract) the "deficiencies" to the amount of principal.
66. Don't pay for private mortgage insurance (PMI) if you can avoid it by putting at least 20 percent down on your mortgage.
67. Check laws and regulations before you start land development, plus check them as the job continues because they can change at any time. Also, be prepared for any government-related approvals to take four times longer than you planned for!
68. Sellers aren't always the kind of people they appear to be.
69. To make sure that the house you want to buy is physically located on the land that you're buying, order a survey and title search before you make a purchase.
70. Trust your intuition or gut feeling and things will usually work out better.
71. Draw your neighbours into your building plans and ask for their support on any variance issues.
72. Insure your properties with policies that will cover all contingencies, including lost income.
73. Maintain liability insurance to cover property owners and managers because tenants can sue for the strangest reasons.
74. If you're an investor who builds houses, know what your insurance covers and be sure to purchase Completed Operations insurance.
75. Be sure to order professional property inspections before closing on a property.
76. "Vacant" and "abandoned" houses aren't always found to be as advertised. Use caution when entering them and don't go in by yourself.
77. Don't let long-term renters limit prospective buyers' ability to view your property.
78. Be prepared to defend your actions-in court if necessary.
79. Know how to identify the investment home you purchased at auction to avoid having to break into it.
80. Always research title issues and buy title insurance to cover any surprises.
81. Keep your moral scruples about you when dealing with tenants.
82. What looks good on the outside could be a cesspool on the inside.
83. As a long-distance landlord, even if you rely on trusted agents and managers, still do your own market research.
84. Walk into foreclosure situations with your eyes open and the sheriff's department at your side, if necessary.
85. Take oft your rose-coloured glasses when doing your due diligence.
86. Always buy title insurance – even for your flips!
87. If you want a title search done right, do it yourself or hire a title company you trust to do it correctly.
88. Reduce your theft troubles by not doing certain things and not saying other things.
89. Seek help from the authorities when you need to evict tenants you suspect are dangerous.
90. Is it better to fix something or replace it? That is the question!
91. Rehabbing your first fixer-upper takes much longer than expected and costs much more, but it provides you with a tremendous learning experience.
92. Beware of failing into the "rehab" trap.
93. If you waste time getting work completed on your rehabs, you're wasting your profit.
94. Make sure independent contractors you hire are doing their work properly.
95. A lemon of a zoning conflict was turned into lemonade and put £50,000 into the investor's pocket.
96. Do everything within your power to keep a good handyman working for you if you find an honest and skilled one.
97. Any investment that you can add value to, realize tax benefits from, and actually see and touch should be a good one.
98. It's never too late to start becoming a real estate investor.
99. Finding creative ways to lease properties puts more money in your pocket.
100. You never really know what impression you are making on a prospective seller.
101. You'll never know it all, but you can learn enough.
102. Build a power team of professionals who understand your investment goals and style.
103. When appropriate, take the opportunity to perform a great service for owners, for neighbourhoods, and for families that need a new direction.
104. Understand that if you never ask, you'll never receive.
105. Make your portfolio more profitable by partnering with a knowledgeable and reliable property manager.
106. Teach your children how to invest early in life.
107. Experienced investors can come to the rescue through step-by-step problem solving.
108. When you avoid bad mouthing competitors, you can sometimes help yourself.
109. At times, you just have to think outside the box ... or outside your yard.
110. Look for non-monetary ways to help sellers.
111. No matter who you are, where you live, how much money you have, how old you are, or even how disabled or able-bodied you are, you too can succeed at real estate.