A landlord (I know) purchased, remodeled a triplex, then rented all 3 units. In his efforts to get it quickly rented he dropped his standards. One of the units was rented to a boyfriend and a girlfriend. The girlfriend had horrible credit and no references, however the boyfriend had a good job, good credit and good references.
As with young unmarried couples renting or buying anything together, more often than not, it doesn't work out. They broke up and the guy moved out.,leaving the girl (a party girl) behind. She had a succession of guys living with her. The landlord was indeed paid in cash for one month. Then came excuses and promises to pay. One month he got $50, then nothing more. Promises to pay and more promises as for another 4 months.
At long last the landlord was off to court. But who to sue? The original boyfriend was long gone (good for him). The landlord had not required any of the intervening boyfriends to sign a lease. So the landlord sued the girl. Sure enough, the judge awarded him $3000 (expensive wall paper) and possession of the unit.
What did the landlord miss?
- Anytime you have a new resident in a unit - they MUST SIGN A LEASE !!!
- He forgot to SUE EVERYONE ON THE LEASE !!!
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If you are a new landlord, please take advantage of the wonderful resources available today to educate yourself and maximize your profits. A great place to start is your local not-for-profit Real Estate Investment Group. I have been a member of 3 over the last 20+ years.
Find your loal REIA at http://www.mynationalreia.com/clubportal/795files/directory.cfm?clubID=795&pubmenuoptID=11912
