However, there is one particular drawback to renting out an investment property that you should be aware of. From time to time you may run in to a problem tenant that falls behind on the payments or just doesnt pay the rent at all, forcing you to perform an eviction. There are a couple of things you can do to avoid an eviction.
To begin with, before you rent out the property to a potential tenant make sure you do your due diligence on the tenant. You should ask the tenant to fill out an application that includes references of past landlords. This will allow you to do a little bit of investigative work which will go a long way in avoiding an eviction. Call up the past landlords and find out what kind of tenant your applicant was. Did they pay their rent on time? If they were late with their payment, why? Did they cause any problems? Are they the kind of tenant they would welcome back?
Past history often foreshadows future behavior. Thus if the tenant was an admirable renter before then chances are they wont cause you any problems. But if they have a history of late payments, excessive complaints, or problematic behavior then it is best you look for another tenant. Taking on a tenant that has caused problems for other landlords in the past will only lead you down the road to eviction. And remember you are doing this due diligence in order to avoid the headache of eviction so make sure you are thorough and dont skip any corners.
If you have done your due diligence then chances are you wont run into any problems with your new tenant. However, once you do have a tenant there are a couple of things you can do to ensure there isnt an eviction in the foreseeable future. First set clear guidelines that are clearly outlined in the lease agreement . Make sure the tenant knows when the rent is due, how long the grace period is, and what the penalty is for paying late. Dont let the tenant get into the habit of paying late. If you dont enforce your contract now it will be that much harder to enforce it later. The lease agreement is a binding contract and should be treated as such.
You should also treat your tenant with respect and respond to their repair requests in a timely manner. If you maintain a professional relationship with your tenant then many small problems that could potentially lead to larger problems can be squashed immediately. If you do your best to manage the investment property professionally and abide by the terms of the lease agreement then avoiding the unpleasant eviction process should be a piece of cake.