Recently a property owner told me an awful story about a tenant who didn’t pay rent for 5 months at $5,000 per month, generating over $25,000 in losses to the property owner. Unhappily, property managers have been accustomed to write off these types of losses and pass it off to a useless collection agency. Even with a court order collection agencies can’t collect, they end up mailing the tenant materials; sadly the paperwork ends up recycled or burned, and the phone number they are calling no longer exist. “If” the collection agency actually collects money they will take 60% of the $25,000 owed, resulting in a loss. Why do property managers continue to put themselves at risks with no way or protecting either party involved?
As a property manager do you often wonder how can I protect rental properties from tenants not making rent payments? After conducting various types of Google searches, I found articles on how to find good tenants, how to screen better tenants, or how to evict your tenants as a landlord. Unfortunately, there is nothing that helps mitigate risks or protect investment properties from tenants not making their rent payments. Are there any programs that will subsidize rent payments outside of section 8? Sadly, I found nothing exist; unless the tenant has a 650+ credit score, no bankruptcy filings in the past 5 years. Basically, they would be approved to buy their own house with minimal out of pocket expenses. What good does this do for me as a property manager? Why do programs only exist for tenants that are extremely low risk and have the resources to buy their own property? Is there a way to protect our investments from higher risks tenants? Those tenants who have been evicted in the past, or have low credit scores.
Is it because America loves the court system and lawyers make laws around the system to help bring people to court or evict tenants? Why are we always about finding a way to sue, go to court, or fight with no conclusion? Why not create a winning situation where everyone benefits in the end? Is it because we are greedy and are always reacting instead of being proactive?
Why do I keep seeing articles that clearly define “how”” to better screen tenants, don’t get screwed over by tenants – why is there nothing about protecting my investment properties from nonpayment? Everything leads to eviction! What if I like my tenants and I don’t want to go to court because my tenant of 5 years has a financial misfortune… Is there a recession looming around the corner which could cause another housing crisis?
In recent studies by Forbes, CNN, CNBC and a few other resources, the results concluded that 78% of American’s are living paycheck to paycheck with no savings or protections in place? If they lost their job today how would they make payments to rent or their bills?
How do we assure our rent for several months at a low cost point? That is why we created Rent Assure, for more information please call ARS at 954-666-5334 and ask for Jamie or visit our site www.ars101.com!
