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Contents
Chapter 1
Selecting High-Quality Tenants
Marketing Your Product
The key to a successful and profitable real estate investment business is selecting the best tenants possible. And one of the key elements in selecting and attracting the best tenants is to market your rental unit so the ideal tenants like what they see. As you begin the search for the best tenants, the number-one concern for you should be this: Start with what you have to offer. In other words, get your house in order.
Solution
Heres a 10-Step Program on How to Get Your House in Order
Step Number 1: At all times, before making arrangements to show the rental unit to a potential tenant, take the time to thoroughly scrutinize the rental unit yourself. Look it over. Ask yourself, Is this a place where Id consider living?
As they inspect the apartment, most people will be looking for obvious deficiencies. They want to know if the various utilities, stove, refrigerator, dishwasher, and hot water heater are in good working order. The good tenants youre seeking arent dumb, so you can be assured that they are going to be very observant of whether the unit is clean.
As you go through your building, check the basement. Make sure its not full of leftover junk from previous tenants. Ive gone into some basements and found a collection of clutter consisting of old mattresses, davenports, chairs, and many other items.
Once youve completed your inspection and youre ready for the showing, go through the unit and review your property and ask yourself, Am I satisfied that everything is in tip-top shape and ready to show?
Step Number 2:Check the fire extinguishers, smoke detectors, and smoke alarms. I highlight and magnify this item, fire-related equipment, because of its importance. Make sure that all of the fire safety equipment is in proper working order.
Heres something many landlords overlook. Smoke detectors and smoke alarms have a limited life span. If you have any question about the length of time theyve been in your unit, dont hesitate to buy and install new fire and safety equipment at regular intervals. Its inexpensive insurance.
Periodically ask the tenant to check and make sure the smoke alarm and fire extinguisher are working and in proper order. If you have a feeling that the tenant might not do this, then take it upon yourself to check them.
In fact, Id make it a point to personally take the time to inspect the fire extinguisher. Theres an indicator that shows if its in proper working order and whether it is fully charged. If its not at full charge, have it recharged.
If the fire extinguisher is located inside of a cabinet or cupboard, purchase a red warning sticker that says FIRE EXTHIN-GUSHER INSIDE. Place this sticker on the outside of the cupboard door.
I dont think its a sound idea to buy and install the least expensive fire prevention equipment. If a fire should occur, and its discovered that you installed a cheap fire alarm or detector, an attorney will focus on this detail and might be able to use it against you.
If your building has natural gas heat and gas appliances, stove, and gas dryer, install a carbon monoxide detector. As with your fire protection equipment, this also can be inexpensive insurance. Heres a case to illustrate why you must have all this equipment working properly and in first-class condition.
My friend, the owner of a sixplex, rented one of the units to a single working woman. She checked out well in the application for rent and the credit report. One evening she returned to her apartment and started preparing her meal on an electric stove. She left the kitchen, went into the living room to watch the news, and fell asleep. The stove burner remained on while the food was cooking; well, lets say it overcooked. Eventually, with no one watching, something ignited and started a fire. The smoke awakened her. As she woke up, she discovered flames in the cooking pan and all over the burner.
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