Iowa Real Estate Investor

Every landlord is looking for the perfect tenant, with the perfect credit score, with the perfect job which produces the perfect income, and the perfect pet which usually means none.  If they had kids they would be perfect and stay inside with no toys.  They would never make any noise or disturb the neighbors.

On weekends, they would take time to clean the house, make sure the lawn is double cut in diamond shapes and the garden has no weeds.  This tenant would always pay all their bills on time, have some savings put away and take their payments very seriously.  The walls would be perfect, the carpet would be cleaned monthly, and the bathroom would be spotless.

If this represents the type of tenant you picture living in your rental… YOU’RE AN IDIOT… In fact this is the type of tenant that scares the crap out of me.

If a tenant has great savings, great income, stable job, great references and great credit…..THEY DON’T NEED YOU. This is the type of tenant that usually moves out quickly and is a pain to deal with because they know they can go anywhere to rent.  They want to be treated like a king. It’s kind of like dating the hottest chick in school; there is always a long line of competition trying to step into your place any chance they get.

A stumbling block now becomes a stepping stone

The best tenant is going to be one who you gave a hand up to and doesn’t have anywhere they can go. They appreciate your kindness in renting to them when they probably couldn’t qualify at other places.  So if things don’t work out with you, they have a crisis.  The perfect credit couple laughs and moves on.

PROFITS ARE MADE BY LACK OF TURNOVER

My job as a landlord is to make the best judgment of who is going to keep my house nice and stay the LONGEST!!!  Why do busy work month in and month out, filling units with people who don’t care enough to stay more than a year at a time?  I want to find someone who has shaky credit and help them back on their feet. I want to help a single mom in the middle of a divorce who now has bad credit and very little job history. You see, we’ve only got so many years here and instead of kicking someone when they are down, let’s take the time to help them out. Yes, you will get taken advantage of, however perfect credit does not mean they take care of property.

The best part, damaged tenants will make you FILTHY RICH!

If you take care of your property, also treat your tenants with dignity and respect. Make sure they are being treated the same way you would want to be treated in their situation then you will have a following of tenants who stay with you for years at a time. The longer they stay the more your profit shoots through the roof and by default you have no choice but to be filthy rich.

Some of the best tenants I have ever had have shaky pasts, however it’s the past.  What was a stumbling block in the past is now a stepping stone to a better life.

Landlord 2.0

This is for advanced investors.

Use your rentals to find the best tenants!, not the most qualified on paper. Watch them year after year. Then when you find ones that pay on time, work hard and are easy to deal with, call them up and make a deal. Offer to sell them a house on contract or lease option that fits their dream scenario. A dream that was always out of reach due to their credit, job, and life circumstances.

Now you have taken a tenant and turned them into a home buyer. You were smart and qualified them with a little and now you trust them with a lot. You are now a step above the competition and beside making great profits you changed someones family for generations.

So next time you come across that perfect tenant RUN!!!

(Disclaimer- obviously you need to follow your landlord/tenant equal housing opportunity guidelines and treat everyone the same…but instead of junking the bad ones, keep em’.)

What is your favorite type of tenant? Is there a type you look for the most? Let me know by leaving a comment below.