The Money Kings are keepin’ it real, baby!!!

For your consideration: Real Estate Profits And Losses. Scenario 31: So Many Unexpected Tenant Problems . . .

Read This Mess . . .

So you’ve got a nice 2 unit building going. It’s nice and large. It’s in great shape. You’re excited about your potential for income.

You move in some great tenants (or so you think) in the upstairs unit. They start paying. They’re paying regularly for an entire year. Things are looking great.

All the while, you’re rehabbing the lower unit. No problems. No water leaks. No rats. No cats. No gas leaks. No radon. No sharp nails. No emergency room runs. No stray children. No ladder falls. No paint spills. No all-nighters. No fires. No nothing.

Then, you let a new tenant in the lower unit. AND, they actually start paying!

What happens next is that your downstairs tenant:

1. Loses his job.
2. Winds up with no money, because he had no savings.
3. His license plate sticker expires.
4. City code enforcers ticket his car (which is parked legally in your driveway!), because the license is expired.
5. The ticket (of course) is $75.
6. Your tenant can’t afford his rent, his ticket or his license renewal.
7. Legally, he can’t even drive his car to work to get more money to pay all his bills.

In defense of tenants, this scenario is bullshit. People struggling don’t need more expenses, more rules, more reasons to be seen as screw ups. In general, societies will always have people on the bottom rungs. It’s inevitable. The great thing about America is that it’s possible to move up. In many parts of the world, that’s not a reality. For many of America’s poor (and yes, many of your tenants are simply poor), they might as well live in India with a caste system. This just sucks for a supposedly 1st Tier, 1st World country.

For the landlord, this scenario this ridiculous. It’s not your fault. It’s not your problem. But when the rent’s not being paid, because “the man” is basically hounding your tenant out of work . . . what the hell can you do?

The Money Kings recommend, of course, easing your tenant out of the lease by telling them that if they move out in 2 weeks, you’ll charge them nothing and ask no questions. If you’re renting in a high income bracket, tell the tenant you want your money or you’ll sue.

Regardless, remember that when you’re a landlord, the life that happens to you. The screw ups, the bad luck, the f-ups, the bad breaks, are also happening to your tenants. When cash is on the line, it’s like you’re living extra lives with extra chances for money to be tapped out of your pockets.

Keep your head up.

And . . .

Good luck out there.

Keywords: real, estate, tenant, problems, life, money, laws, Catch 22