Landlord? Here's How to Avoid the Tenants from Hell!

 
"Daniel, what happens if your tenant-buyer wrecks my 

property and becomes the Tenant from Hell?"

Key differences of Having Only Tenants Versus Having "Tenant-Buyers"

 Most of the time, people that we initially work with don't know the differences between a

conventional tenant and "tenant-buyers" that we work with, naturally they are worried that 

they will get stuck with the dreaded "Tenant from Hell."

 The Burden of Having Just a Regular Tenant

Let's face it, we all have heard horror stories of horrible tenants destroying the property 

owners homes. There is no denying that these types tenant exist. We fear that we are 

going to have to deal with one of them. Unfortunately, they make it more difficult and give 

good tenants who actually take care of their rental a bad name.

Here is why:

• It's human nature to take of what you personally own (or will own in the future). Think about this... We don't wash our rental car, but we will wash the car that we own and take good care of it.

• They don't see your property as theirs, therefore they have nothing to look forward to regarding your property in the future. You do, but not them. Thus, there is real reason for  them to take care of the property as if it was (or will become) theirs.

• Tenants themselves have very little "risk" and "consequence" when you look at the big picture. This is because they only put down a very small refundable deposit (equal to the first month's rent) which they will get back at the end of their lease agreement so long as they have taken care of the property till the end.

 

 

Benefits of Having a "Tenant-Buyer" 


You may have figured out by now, a great tenant is someone who:


• They see the property as if it was theirs (or will soon be).
• Wants to achieve home ownership, and not just rent a home for a specific time period of the lease and then have to move on.
• They have something to look forward to with property they are currently living in. 
• They have real "skin in the game" by having to put down a considerabaly large amount of money upfront (that's not refundable from the start), so they have a lot to lose if they walk away from the property.
• You have someone who with written permission ahead of time from the home owner, will improve the property such as painting etc. Our tenant-buyers are actually responsible contractually for the first $5,000 or more sometimes-in repairs.
Conclusion


I understand your concerns.

Believe me.

I know and understand that you do not want to put someone in your home that does not 

appreciate it, then turns around and wrecks the property, only to leave you stuck with the 

bill.
 
I get it.

While there are no guarantees in life and even with a tenant-buyer that we send you, my 

hope is that the information that I provided for you above will give you some "food for 

thought" on this subject and show you that most assuredly, that again, while there are no 

guarantees, at the very least with our tenant-buyer we send, you have someone who is 

willing to give you a large, non refundable deposit for your protection.





Not to worry, we of course:


• Check their income for the last 12-24 months, especially if they are self employed
• Get a pre-qualification letter from a lender with the full break down of their current credit situation, debts to income, past credit problems (if they have any), and anything else you may want to see and know. 
• Find out why they are not buying in the conventional way thru a bank now, and how long will they need before they can qualify (usually 1-3 yrs)
• References
• Check their past rental history to make sure they will be always on time.
• Do a full background check looking for past evictions and/or felonies.
• A letter from the tenant-buyer if there are gaps or causes for concern.
• And more....

All of this would then be presented to you, your realtor and/or attorney for review before our 

assigning of contracts, this way you are never left in the dark as to who you are getting as a 

tenant-buyer-never!