With all your experiences and professional knowledge, you had 3 bad tenants in a row? That’s incredibly bad luck and almost hard to believe.
And besides, why did you even bother it renting out? To be nice? Aren’t incredibly wealthy by now after doing RE for so many decades? What’s another $2-3 thousand a month gonna do for you now? Why not just do your ground up developments? Why bother with dealing with tenants at your level of wealth and age? Just enjoy!
I do like to say better lucky than good (sometimes) !
Agree!!! Who has more experience than @Elt1??? Yes, we can usually “smell out” a bad prospective tenant, but at the end of the day, one still has to do the grunt work (check references, see paystubs, call employer and landlord, etc…). And yes, one could do EVERYTHING right and to the book but hey who can’t lose their job due to a layoff or downturn in an industry???
Yes, luck plays a part in it, but I still go to my fav line (ironically from those crypto commercials): FORTUNE FAVORS THE BRAVE!
Actually the tenants in my farm were some of my better tenants. They didn’t threaten me or burn down my building like at my apartments in Tahoe. Tenants are really bad these days. I finally hired a manager for my apartments. I actually liked the tenants on my farm, they are just products of their generation… a total mess, the guy I have now is my age, great tenant. I can deal with bad tenants, just prefer not to have them near me. I only spend less than 50’days a year on my farm so it didn’t bother me that my tenants were not perfect. And U need someone there to look after things… too much going on to be left vacant… has three units and acres of maintenance needed.
I was dreaming that I could find a farm manager that was also a tenant.
I am interviewing a farm manager this week. But they are wicked expensive. I recommend ForeWarn.com and Credit Karma.com for screening.
Credit score is the most important indicator of tenant quality. But also their job is important. In Tahoe most renters are minimum wage, have bad credit, are transitory, young, irresponsible… not the best candidates.
Thanks for the all comments. The exsiting detached unit is just sitting there and doing nothing. We have enough space on main house 3500sq, 2 adult and 1 kid. Also detached unit has solar panel so I can not demo. For tenant I personally carefully choose the tenant to avoid issue.
Also the home value will goes up, property tax will goes up.
Good luck with your project. With proper planning, you can create good privacy and create a nice income stream. Just take time to screen tenants - 95124 should good very well qualified pool to select from.
For me, the tenant is cool and actually my wife likes another person around our huge, detached house if we are gone. Secondly, that space of my house I would never use anyway. Thirdly, that check is good for frivolous things like short vacations, nice meals out, etc. Not a problem at all…if done right.
Why not just do your ground up developments? Why bother with dealing with tenants at your level of wealth and age? Just enjoy!