Pets or No Pets and Other Tenant Issues by James R Kobzeff

Real estate investors quickly discover that real estate investing is as much a people business as it is financial. The reality of owning rental income property is tenants, and as such, issues surrounding tenants must commonly be addressed by real estate investors.

Here are three.

Is it a Good Idea to Rent to Tenants with Pets or Not?

Whether you own one rental income property, a large apartment building, or simply rent out a bedroom in your motor home. If you own a dwelling you rent out to tenants, chances are that you already adopted some policy about whether or not you will rent to tenants with pets. There is no landlord alive that hasn't posted a "Now Renting" sign that invariable gets asked, "Do you allow pets?"

Okay, so should you allow tenants with pets into your property or not? There are certainly justifiable reasons why some landlords adamantly won't, but it might help to consider some reasons, especially if you're a beginner at real estate investing, why it might not be a bad idea.

1. You will get a pool of grateful tenants to pick from 2. Pet owners generally stay put longer than non-pet owners do because it is difficult for them to find a landlord willing to accept pets 3. It increases the pool of tenants you can rent to, so it helps during periods of high vacancy 4. Most pet owners are willing to put down a large security deposit that will subsequently offset pet damages 5. You might be able to command a slightly higher rent when you allow pets.

Naturally, you want to have some controls in place, but you might discover that pets are not as bad as you think, and might even be better than you think. You should at least consider it.

How Should You Resolve Disputes Between Tenants in Your Income Producing Property?

Tenants sometimes have disputes with other tenants in the building that led to complaints the income property owner must deal with quickly to prevent things from becoming ugly.

But how much can a rental property owner do to resolve disputes between the people who occupy a rental income property like an apartment complex? The truth is that most state laws restrict the amount of control and power a property owner actually has at an income-producing property. Even if you wanted to do something about the complaint, there is little you can do.

If a tenant in the apartment building is annoying other tenants with loud music, for example, you are limited to speaking with the tenant or perhaps sending a letter, but that is about the extent of what you can do. You certainly cannot walk into the unit and turn the volume down or take the radio�"that might get you arrested.

Eviction of the tenant is always a possibility, but if the tenant pays the rent on time, you would have to evict for reason of nuisance. On the other hand, though you may not want other tenants to be annoyed by the rudeness of one tenant, you also do not want to lose an otherwise good tenant or create a bad situation with an eviction.

The best advice for the real estate investor is to explain to the complaining tenant that you will speak with the tenant in question, but if the matter does not clear up, the complaining tenant should contact the police and report the behavior of the problem tenant to authorities.

Remove Unregistered and Junk Cars From Your Rental Property Parking Lot

In addition to fire and safety codes, many states and localities have laws and ordinances that require income property owners to remove junk cars. In fact, many state and local laws forbid the existence of junk and unregistered cars at rental income properties. In this case, owners will be held accountable for this and can be punished by fines and imprisonment if the situation is not remedied.

Nevertheless, smart real estate investors should not permit junk and unregistered cars to remain at a property for any reason because it looks bad and sends the wrong message to prospective tenants. Moreover, it’s contagious. When one shows up it usually isn't long before more will.

There are towing services available to help remove these automobiles when they either are not moved by the owner or are abandoned. Just be sure to contact your state and local authorities regarding the removal of such automobiles and be sure it is done properly so that you are not held liable for tampering with someone's personal property.

Remember, the investment property represents your future wealth, and your future wealth means college tuitions, travel, and retirement. Don’t let the shortcomings of a few tenants who deify junk ruin it for you.